Whether it’s buying new, buying used, or leasing a vehicle, you should start by figuring out how much car you can afford. Different auto options each come with their own financial guidelines.
Watch the video to figure out whether you should Buy New, Buy Used, or Lease, then test your knowledge at the end of the lesson.
Which of the following is true about a car down payment?
A. A car down payment covers insurance and registration costs
B. A car down payment covers sales and commission fees
C. A car down payment covers the first 3 payments
D. A car down payment lowers the interest rate of a loan
Which of the following is not true about buying a car?
A. New cars tend to be more reliable
B. New cars come with warranties and add-ons
C. New cars have higher insurance rates
D. New cars come with a lifetime guarantee
Car leases can offer lower monthly payments, and maintenance is commonly covered by the manufacturer’s warranty.
A. True
B. False