Unit 6 Buying a CAr

Insurance that pays for damage you cause to another person's vehicle

• collision
• liability

Insurance coverage that pays for losses that are out of your control (weather related, fire, hitting an animal, etc.)

• collision
• comprehensive
• liability

Having a lower APR could mean that your...

• monthly car payment is lower

• interest paid is higher

• car loan will be over a longer period of time

You're likely to save more money in the long run if you...

• Buy a used car

• Lease a car

• Buy a new car

A reduction in the value of an asset over time is called

• appreciation

• depreciation

• inflation

Most people cannot afford to pay for a new car in one day. Instead, people pay the cost over time, but sellers require a certain amount of money the day you buy it. This is called what?

• downpayment

• VIN

• insurance

• lease

Which type of auto insurance is required by law in most states?

• liability

• collision

• comprehensive

• personal Injury

Which is NOT a factor that affects the price of a car?

• condition of car

• age of car

• your driving history

• color of car

if you are willing to give your car to the dealer in exchange for a new car, you can often get a better price

• lease

• VIN

• warranty

• trade-in

The price of a motorcycle is $18,000 and there is a 20% down payment. What is the down payment amount?

• $3,600

• $360

• $36,000