First-Time Car-Buying Test
Why is it a bad idea to buy a car on your first visit to the dealership? Pick the most correct answer.
Dealers will probably make a lot more on you if you don’t shop around.
You may not have completed your homework.
Dealers know when they see a first-timer.
Some dealers imply you “have to” finance your vehicle at the dealership. Is this true? Pick the most correct answer:
No, you can finance at the credit union if you qualify.
Yes. You finance at the dealership, according to their wishes.
Maybe. Or you can go to a check cashing service, so you can pay for the car in cash.
When are you a subprime borrower?
When you have great credit, and lenders want you to borrow money from them at the interest rate you want, being subprime and all.
When you have a poor or bad credit score and lenders charge you a higher interest rate because of your credit.
When financial institutions ask you to wait before they give you a loan. Prime borrowers get a chance first.
When no financial institution wants to give you a loan because you are below the prime lenders category.
Buying a car in the sale is always cheaper.
What is typically a good (FICO) credit score?
700 or above
Between 900 - 1100
What is the most expensive mistake many buyers make?
They budget carefully.
They take their time, rather than rushing through the buying process.
They do a lot of homework before buying or financing.
They let their emotions drive their purchase.
What is a possible reason a car salesman wants a down payment? Choose the best answer
So they know you have the money.
So you can’t leave.
To show their boss you are serious.
Which step or steps should you take before buying a car online? Please check the most correct answer.
All of the statements.
Watch out for online sellers that push you to buy quickly.
Never buy a car online if you can’t personally inspect the vehicle.
Check if a seller’s phone number is valid.
Research any seller’s (online) reputation.
Be wary of “too good to be true” pricing.
Which of these factors would probably improve your credit score?
Being close to your credit limit on credit cards.
Having lots of new credit.
Having companies trying to collect unpaid bills.
Having gone bankrupt recently.
Making monthly payments on time.
When you have a good credit score, you are credit-worthy. What does this really mean? Pick the most correct answer. This is an indication of how likely you are….
To check your credit score every year.
To be a responsible borrower and pay bills on time if you take out a loan.
To receive a reward from your financial institution for being a good customer.
To make use of your credit score at a financial institution after you check your score.
The price of the car isn’t normally where dealers make the most money. Many will sell you a car for cost, but make thousands on add-ons and protection plans.
At a dealership, should you negotiate from the “asking price” of a vehicle, or the “sticker price”?
Down from the asking price.
Up from the dealer cost.
Down from the sticker price.
Place these three steps in chronological order for a successful transaction:
Budget, choose a vehicle, obtain financing.
Choose a vehicle, obtain financing.
Obtain financing, budget, choose a vehicle.
Choose a vehicle, obtain financing, budget.
Budget, obtain financing, choose a vehicle.
If I have trouble paying my bills, what should I do? Pick the correct most answer.
Hide in a safe place.
Skip a payment or two, until I have enough pay up next month.
Contact my financial institution and sort out a payment plan or solution together.
Call a payday lender and borrow money, or pawn valuables.
What is the max percentage you should owe on your credit limit?
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