Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Ms. Ray- PF Unit 9
PF Unit 9 Buying a Car/ Car Insurance Test Review
| Question | Answer |
|---|---|
| When shopping for a car loan, compare each loans. | APR, monthly payment, total finance charge |
| If a person chooses a longer time period to repay a loan. | Total amount to be repaid will be higher. |
| The insurance coverage for damage to a vehicle as a result of an accident is called | Collision |
| Damage to a car caused by vandalism or floods is covered by | Comprehensive insurance |
| Before shopping for a car, it's important to | Figure your budget |
| Operating expenses for a car include | Payments, gas, and maintenance |
| Operating expenses can be about | 1/3 to 1/2 of monthly cost |
| A larger down payment will result in | Smaller monthly payments and decrease the total price of the car |
| Lenders decide how large of a loan you qualify for by looking at | Credit report |
| Credit reports tell lenders about your | Credit worthiness |
| One advantage of dealer financing is | Convenience |
| Banks often can give you a lower interest rate if you are an | Existing customer |
| Credit Unions have lower overhead costs which allows them to offer | Lower financing |
| With a home equity loan, your ? is used as collateral for the loan | Home |
| Internet financing offers | Quick approval and competitive pricing |
| Trade ins allow you to | Get a discount when buying a new vehicle or use as a down payment when purchasing a vehicle |
| The value of a new car ? when you drive it off the lot | Drops |
| Depreciation means | Value of car decreases immediately |
| Negative equity means | Vehicle is worth less than what you owe on it |
| Ways to avoid negative equity | Keep vehicle until paid off completely, don't buy a too expensive vehicle, don't drag out payments, and make large down payment |
| Advantage of buying a used car ? | Buying after huge depreciation has already occurred |
| One of the main sources of used cars | Used car dealership |
| Used car dealers can offer a ? on a used car | Warranty |
| Good deals, no haggling, no warranty,not able to test drive when purchasing occur when you purchase a used car from ? | Public Auction |
| Kelly Blue Book allows you to | See the price range for the condition of the car |
| Vehicle History Report tells you | Any major accidents this car may have been in. |
| When test driving a used car, always make sure to | Get a professional mechanic to look it over. |
| Leasing a vehicle allows you to | Have lower payments, and a new car every few years. |
| At the end of a lease you can | Give car back or by it as a used car |
| A disadvantage of leasing is | Anything that decreases the resale value of the car will cost you extra at the end of the lease. |
| If your mileage surpasses the limit on a leased vehicle | You will have to pay extra for that cost at the end of a less. |
| Closed in lease | Sets a specific amount for a depreciation cost to pay at end of lease. |
| Open end lease | Estimates the depreciation cost and you pay any differences at the end of the lease. |
| Most reliable source for buying a used car is usually | Car Dealer |
| Price the manufacturer has 'suggested' be charged for the vehicle | MSRP or sticker price |
| Price the dealer has paid the manufacturer | Invoice price |
| Destination charges, Licensing and registrations, extended warranty, dealer prep, and credit insurance | Add-on |
| Credit insurance | Pays off your car loan should you die while leasing vehicle |
| A car warranty that goes into effect after the basic warranty coverage provided by the car manufacturer or dealer expires. | Extended warranty or service contract |
| Price of vehicle before any buyer options are added to the cost | Base price |
| A written guarantee to make needed repairs on a car within a limited period of time | Warranty |
| Charge for getting the car ready to be sold. | Dealer prep |
| Contract between the individual and insurer specifying terms of the insurance including: | Policy |
| The amount paid for insurance coverage. | Premium |
| Amount paid by the policy holder (consumer) for the initial portion of a loss before the insurance coverage begins | Deductible |
| Most states require this. If the accident is your fault, your policy pays for injury and property damages to another vehicle and people in the vehicles. | Liability insurance |
| Covers the cost of your injuries of a driver who has no auto insurance or has insufficient insurance coverage hits you. Covers guest in your car. | Uninsured motorist |
| Does not cover damages resulting from a collision with another car. Covers damages to your vehicle caused by vandalism, fire, floods, thefts, or other natural disasters | Comprehensive coverage |
| Covers damages to your vehicle in an accident. Is required if you are making car payments | Collision |
| Covers injuries you suffer while riding in your car or in someone else’s car. Covers your passengers if you were at fault in an accident. Covers your injuries if a car hits you while you are walking. | Medical payments |
| Covers the cost of renting when your car is in the shop for a covered loss. Also,covers the cost to tow your car to a shop close by, not necessarily the shop that is most convenient for you in your hometown. | Rental and Towing coverage |
| Will pay for the loan balance on your car if it is totaled and you owe more on it than it is worth. | GAP coverage |
Created by:
rray
Popular Family and Consumer sets