Car Buying Basics - 5 Steps to Vehicle Financing (NJROTC JLAB)

How many fundamental steps to car buying are there?

• 3

• 1

• 5

• 2

What is a lien?

• A lien is an entity form outer space.

• A lien is a legal claim against property or funds to secure payment of a debt or services. Liens can be placed on real estate, vehicles, or other assets. 

• A lien is an illegal claim against property or funds to secure payment of a debt or services. Liens can be placed on real estate, vehicles, or other assets. 

• A lien is the cousin to a Lion.

When having a lien to the car loan, who owns the car?

• No one

• The dealership

• The driver or loan holder

• Bank

What is the definition to the acronym, APR?

• Annual Percent Rate

• Another Purchase Regret

• All Population Rights

• Annual Purchase Rate

What are other potential fees?

• Credit Check Fees

• Test Drive fee

• Application Fees

• Credit Processing

One may get a lower APR with:

A used car

A negative (bad) credit score

A longer term loan

• True

• False

What are the five steps to vehicle financing?

• Understanding the complex negotiations

  Go with the first lender

  Get the loan the same day

  Get the most expensive car...go for it!

  No need to read anything. Trust the dealer!

• Understanding the Basics

  Shop around for financing

  Get your loan pre-approved

  Know your number

  Read the fine print

Getting your loan pre-approved will help you get better negotiating power, to include a possible lower price and better interest rate.

• True

• False

To know your number means, to ensure you shop within your means and not purchase something you cannot afford.

• True

• False