You see definition-you SAY the vocab word
Bank or car dealer loaning you money to purchase the car
Lender
The annual percentage rate is: The amount of interest charged on a yearly basis
True or false
So true
Default
When borrower violates the loan agreement by not making monthly payments
Documentation that proves insurance has been purchased for the vehicle
A. Proof of insurance
B. Title
C. Registration
A. Proof of insurance
Mr. Benson is the coolest teacher in the world
True or false
True. Duh.
The amount loaned NOT including interest
Principal
A loan is: The amount of interest charged on a yearly basis
True or false
SO false (this is APR)
cosinger
Another individual who agrees to assume responsibility for a debt if the borrower defaults
Annual fee charged by a state to a vehicle owner for the right to drive the vehicle.
A. Registration
B. Proof of Insurance
C. title
A. Registration
The amount loaned NOT including interest
Is this the principal or the down payment?
PRINCIPAL
Date the loan should be paid back in full
Maturity Date
Department of Motor Vehicles (DMV) is only located in the capital of each state...
true or false?
False-
Department of Motor Vehicles (DMV)
Government agency that regulates driver's licenses and automobile registration and are found ALL over the state
Title
Legal document issued by the DMV and indicates who owns the vehicle
VIN Number:
A. VERY IMPORTANT NUMBER
B.Unique, original code assigned to a vehicle that includes a serial number
C. Number on your licenseB.
Unique, original code assigned to a vehicle that includes a serial number
Interest Rates and Variable Interest Rates are the same thing
True or false
False!
- Interest rate is: Percentage the lending institution charges for borrowing money
Variable interest rates can change
Percentage the lending institution charges for borrowing money
Interest Rate
It's optional to have car insurance if you own a car and drive it, it's just smart...
true or false
false! It is NOT optional. It it illegal to drive without car insurance.
Down payment
Initial amount of personal money that is paid by the borrower for the car purchase
Auto lender can take back possession of your vehicle, usually for defaulting on payments
A. Default
B. Repossession
C. Loan forgiveness
B. Repossession
If your friend really wants/needs a car but doesn't have good credit, its a good idea for you to be nice and offer to be a cosigner.
True or false?
False! If your friend stops paying the loan, you will be responsible for it.
Interest rate that is not fixed and can change throughout the life of the loan
Variable Interest Rate
If your car breaks down (engine stops working), your car insurance will cover the expense.
true or false
SO false. Car insurance only covers damage to your car in an accident.
Gross Monthly Income
Total income each month before any deductions are taken out
Bank or car dealer loaning you money to purchase the car
A. Your parents
B. Leasing a Car
C. Lender
C. Lender
What is the 20/10 rule?
Based on your monthly income you shouldn't have bills that are over 10% of your take home income and
You don't want to have for than 20% debt of your yearly income
Doesn't have to be word for word to get it right