Unit 1, Buying a Car

Question 1

What does the cost of a car include?

Answer 1

1. Initial car price.
2. Cost of financing.
3. Registration fee.
4. Taxes.
5. Insurance.
6. Gas
7. Oil.
8. Maintenance and repairs.
9. Parking fees.
10. Tolls.
11. Depreciation in value of the car.

Question 2

How long is a new car warranty?

Answer 2

Three years, or 50,000 miles.

Question 3

What are “options” on a car?

Answer 3

Additional features that are offered, but not necessary.

Question 4

What does the word “difference” indicate?

Answer 4

Subtraction.

Question 5

How do you find the difference in price between a trade-in and a new car?

Answer 5

Subtract the trade-in allowance from the cost of the car.

Question 6

What are five questions to ask when buying a car?

Answer 6

1. Do I need this car?
2. Can I afford this car?
3. Have I shopped around to make sure this car is a good deal?
4. Have I done research to make sure this car us safe and reliable?
5. Have I prayed about buying this car?

Question 7

What is the common percent of sales tax on a car?

Answer 7

5% - 9%

Question 8

What is a registration fee?

Answer 8

The cost of the license plate.

Question 9

How do you find the amount of sales tax you will have to pay?

Answer 9

Find whatever percentage of sales tax in whatever amount your car is.

Question 10

What are equal monthly payments called?

Answer 10

installments.

Question 11

What does the installment charge depend upon?

Answer 11

1. Interest rate charged.
2. The amount being financed
3. The number of monthly payments.