Convertible or Clunker

What is a secured loan?

• A loan with a high interest rate.

• A loan that has no collateral.

• A loan that has collateral.

• A loan with a low interest rate.

An _________________ is a kind of loan that is repaid in fixed monthly payments over a period of time.

Match the following

• The bank pays and you pay monthly.

• Loan

• Can be considered as renting the car.

• Lease

• Money you've saved to pay for a vehicle.

• Cash

Making a decision about buying something large like a car, it is best to....

• Buy after doing some research

• Be impulsive and buy right now

• Make an informed decision after doing a lot of research

Explain the TRUE cost of a vehicle.