AGLS Exam 2 - FLASHCARDS - Car buying part 1
What things should you consider when buying a new car?
Current car issues, space, dependablity, time spent driving, presentability, new car payment, added stress, and depreciation
What is bumper to bumper (comprehensive) warranty?
Covers almost everything between the bumpers (not wear ant tear items). Lasts 3 years or 38,000 miles
What is power train warranty?
Covers most items under the hood (not wear and tear items). Lasts 5 years or 100,000 miles
Which cars have a slower depreciation rate?
Used cars
Which cars charge a higher interest rate?
Used cars
What is cost effective for depreciation purposes with used cars?
Buy a car that is 2 years old and then sell it before it gets to 7 years old
Which cars have lower payments?
Leased cars
With which cars is Guaranteed Auto Protection free?
Leased cars
With which cars do you have perpetual payments, mileage restrictions and must pay for damages?
Leased cars
What is a closed end (walk away) lease?
At the end of the lease, you return the vehicle with no further obligations
What is an open end lease?
At the end of the lease, you pay the difference between the actual market value and what it was originally estimated to be (residual value).
What does liability insurance cover?
Covers damages and injuries from a car accident you caused
What does collision insurance cover?
Covers damages to your vehicle due to accidents with other cars
What does comprehensive insurance cover?
Covers damages to your car not caused by car collisions
What is the 30/60/25 rule for collisions?
Up to 30,000 for each person’s bodily injury, 60,000 for group, and 25,000 for vehicle damage
