Student Name ______________________ __ Chapter 0 510A
1. According to the text, what is “depreciation” ?
2. How does the text, “classify” or describe how are national car selling companies like “CarMax” and “AutoNation”, classified.
3. Auto liability insurance typically covers “legal defense” in case you are sued for bodily injury or property damage. If you are drunk and cause an accident, what are the limits of this legal defense for criminal charges brought against you for DUI?
4. You have the auto insurance covering the legal minimums as required by your state. Your car suffers $10,000 in damage from a torrential flood. You have a $1,000 deductible. What part of the $10,000 damages is covered by your basic insurance, if any?
5. According to How Much Can I Afford , financial experts say that your car payment AND ALL OTHER AUTO EXPENSE should not exceed what percentage of your take home pay?
6. According to Is a Car a Good Investment, from an investment point of view, which option is best, buying new, buying used or leasing a car?
7. How would you define Dealer Holdbac k?
8. Reviewing You’re Upside Down, what are does the instructor recommend as the BEST strategy if you are upside-down on a car.
9. According to What to Expect Once Negotiations Start what is your “most potent play in this entire game”
10. According to Best Time to Buy a Car what part of a month or what day of the week is the “best time to buy a car”.
11. According to 10 Ways the Dealer Will Make Money Off You what is a “pack” (4-pack) … AND … what is a “Bump Sticker”
12. In The Business Office what does it say about the “Business Manager”?
13. According to Extended Warranty there are “two key types of extended warranties”.
What are the TWO types … AND … which one is “probably your safest bet”.
14. Review How Vehicle Financing Works. What is “probably the biggest influence” on the rate you receive for your car loan?
15. According to the “Chapter 5” page (that lists the internet readings links), what are the THREE transactions involved with most people buying a car ?
16. When it comes to Dealer ship Fees, what are THREE items that you should “Avoid Paying”?
17. Review 10 Ways the Dealer Will Make Money Off You . What is a “call back” … AND … how can a dealer use that to profit from you ?
18. Read Factors Affecting Premiums. List THREE factors (one “Demographic”, one “Car-Related” and one Personal Driving Habit) that affect your insurance costs ?
19. Read Basic Auto Insurance. Name THREE of “The Magnificent Seven” (sorry funsters Yul, Steve and Charles are not part of the correct answer)
20. What is “Gap Insurance” … AND … when is it a good idea to buy it.
Personal Portfolio … ( 5 points)
1 . Find a picture of your “dream car” along with its’ price. Copy and paste a
picture of the car below. Remember – price is NO object.
How to Copy and Paste an Image from a Web Page
2 . ALSO … Assuming you finance 100% of your dream car s cost for 48 months @
9 % interest – what is your monthly payment (use a loan calculator – link below)
Calculator: krate.com/c a lculators/auto/auto-loan-calculator.aspx
Monthly Car Payment = __________________
Paste a picture of your “dream car” below here … (next page is okay) :