A
What are the two main options to acquiring a vehicle?
Buying (purchasing) and Leasing
If you purchase a vehicle what are two ways to do so?
Pay Cash
or
Get a Loan
The amount of money that a policyholder must pay out of pocket before their insurance coverage kicks in to pay for claims?
DEDUCTIBLE
The interest rate on car purchases is typically higher on these?
Used Cars
Someone that purchases goods and services to use regularly?
A Consumer
What percentage of resale value does a new car lose within the first two years?
30 percent
The person that rents a room, apartment, condo, or a home?
TENANT
In order to make sure you can afford a place, financial experts recommended that the amount of rent (and other housing expenses) you pay should not be more than how much of your gross pay?
30 percent
The person or company that owns property and rents it to a person(s)?
LANDLORD
If you lease a vehicle what is something that would cause you to pay a penalty as stipulated in the lease agreement?
If you exceed mileage limitations
Money that the renter deposits with the owner of the property in case they damage the property?
SECURITY DEPOSIT
What is the recommended down payment to prevent you from going “upside down” on the loan?
20% down payment
What is the difference between a "need" and a "want" in reference to shopping?
NEED = something you have to have to live
WANT = something that doesn’t necessarily benefit your everyday well-being
What are three examples of ongoing costs when you purchase a vehicle?
Annual Fees - annual tag renewal, vehicle inspection, etc.
Personal Property Tax - tax owed for every year you own or lease a vehicle
Routine Scheduled Maintenance- includes, oil changes, tire replacement, and other scheduled maintenance
Unscheduled Maintenance - parts wear out and break
A formal contract between the insurer (the insurance company) and the insured (the policyholder)? It outlines the terms and conditions of the coverage provided.
INSURANCE POLICY
Car insurance is based on the vehicle being insured and your driving record. What are two types of car insurance coverage and what do they cover?
Liability - covers the cost of any damages you cause to other drivers
Collision - pays to fix damages to your car if the accident is your fault
Comprehensive - covers theft, vandalism, fire, broken windows/glass, etc.
Uninsured/Underinsured - covers you if the at-fault driver does not have coverage or has coverage that has low limits
A legal contract where you can be held to all the conditions listed in the agreement once you sign it?
RENTAL AGREEMENT
or
LEASE
This agency protects us from:
unsafe food
unsafe medicines
unsafe cosmetics
Food & Drug Administration (FDA)
Is renters insurance required? What are the two basic types of renters insurance?
Liability - Covers you in case someone is injured in your rented space or if you accidentally damage someone else's property.
Contents - this covers your belongings
What are 3 benefits to leasing a car?
• Lower monthly payments (typically)
• Driving a new car every few years (most leases are 24-36 months)
• Warranty coverage for most repairs
• Easier to upgrade to newer models
• No long-term commitment
• Option to purchase at the end of the lease
Name three things that are included in a rental agreement?
• the amount of rent to be paid each month
• when and whom the rent will be paid to
• the length of the rental agreement
• who pays for electricity and water
• when and how you need to give notice if you decide to move
• the repair policy
• what appliances/amenities come with the apartment
• whether pets allowed on the property
When it is time to look for a place of your own, it will be important to think about these three things before selecting a place?
1) how much rent you can afford to pay
2) the location of the place
3) the type of place you need
What are the four factors that determine your monthly car payment?
Amount Borrowed
Length of the Loan Term
The APR of the loan (interest rate)
Credit Score
What are 3 things lenders look for when you are looking for a loan?
Steady income
Established residence
Established employment
Credit history (Higher the credit score better your rate)
What Are The Four Key Buying Strategies Used By Wise Consumers?
Plan your purchases in advance (Identify the need vs want).
Do research.
Comparison shop.
Waiting for sales or discounts.