Word bank: depreciate · income · maintenance · pre-approved

1. Total cost = payment + insurance + gas + + fees.
2. New cars fastest early on.
3. Get ; negotiate total price.
4. 20/4/10: 20% down, ≤4 years, ≤10% of .

1. A dealer asks, "What monthly payment are you looking for?"

   1. What's the smartest response?

   • A. Give a monthly number, so they can make it fit
   • B. Focus on the total price, and use your own pre-approved loan rate to compare
   • C. Say you'll take any payment
   • D. Ask for the longest loan possible

2. 2. The loan payment is the only monthly cost you need to budget for when you buy a car.

   True/False

3. 3. Why should you get a used car inspected by an independent mechanic?

   • A. It's required by law everywhere.
   • B. To uncover expensive problems before you buy
   • C. To raise the price
   • D. Mechanics can lower your interest rate.

1. 1. An $18,000 car with 20% down: how much is the down payment and how much is financed?

2. 2. Your gross income is $3,500 a month. Under the 20/4/10 guideline, what's the most your total car costs should be each month?

1. 1. Do you need a car where you live? What are the alternatives and their costs?

2. 2. Why do dealers focus on monthly payments?