Steps in the Car-buying Process
Match the term with the definition:
_______ separates financing from the process of negotiating the price of the car.
Pre-approval
When you lease a car, do you own it?
You do not own the car. After the lease is up you can make a new one or you can buy the car.
Larger vehicles and more powerful engines = more/less fuel.
Larger vehicles and more powerful engines = more fuel.
Match the term with the definition:
After you agree on the price the dealer may try to increase it. This is called ________: high-priced, high profit dealer services that add little or no value.
Dealer add-ons
What is the best way to buy a car? (Hint: It prevents you from having to pay any interest.)
Cash
A _______ is a type of vehicle that uses alternate energy sources, such as natural gas or battery power, in addition to or in place of gasoline.
A Hybrid
Match the term with the definition:
A _______ is a unique number that identifies an automobile.
Vehicle Identification Number (VIN)
A longer/shorter term means higher/lower monthly payments but higher/lower total interest paid.
Longer term means lower monthly payments but higher total interest paid.
Identify the difference between the terms "depreciation" and "appreciation."
Depreciation - a decline in value of property due to normal wear and tear.
Appreciation - an increase in value if very old vehicles are in excellent condition.
Match the term with the definition:
_______ is a website that provides vehicle data to individuals and businesses.
Carfax
What two things should you compare before selecting a loan?
Compare rates and terms before selecting a loan.
What parts of the vehicle should you monitor and maintain?
- Emissions
- Air-conditioning
- Brakes
- Transmission
Define the following term:
Auto Trader
Auto Trader is another online company that sells new and used cars. Edmunds is an online company that has inventory and information for automobiles.
A longer/shorter term means higher/lower monthly payments but higher/lower total interest paid.
Longer term means lower monthly payments but higher total interest paid.
What happens to a car as it ages?
As a car ages, the number of miles driven increases, the physical condition begins to deteriorate.