How much do you know about buying a new or used car? Little Joe’s Autos challenges you test your car buying intelligence, with this short quiz.
Select the answer according to true and false multiple choices.
1) When it comes to buying a car, consumers should refer to:
A) The National Highway Transportation Safety Administration, NHTSA.gov
B) The Insurance Institute of Highway Safety (IIHS)(LINK)
D) All of the above
2) Any vehicle with a recall is not worth buying.
3) Ideally, you should test test drive a car for ________.
C) Half an hour
D) As long you feel comfortable.
4) Tires information is not included in the vehicle history report.
5) Prior to shopping for a new or used car, one should calculate:
A) Fuel costs.
B) Insurance cost.
D) All of the above.
6) Buyback car guarantees are
A) Great policies for protecting a used car buy
B) A waste of money
C) Available on new car buys only.
D) Unethical policies.
7) According to Banks, and lending institutions, a borrowers monthly car note should not exceed ________.
A) Half of your monthly income.
B) A quarter of your monthly income.
C) A third of your monthly income and
D) A tenth of the take home pay.
8) When shopping for a preowned vehicle, it’s good to take several months to shop for the best deal on the car and financing.
9) Auto buyers with a poor credit score can never qualify for a car loan
CAR BUYING ANSWERS
1) (D) When shopping for new and used cars, the IIHS, NHTSA and SaferCar.gov are vital resources for car buying research.
2) (B) as all recalls hinge on the faulty parts. For instance, a recall for an irregular sized cup holder does not carry the same safety issues as a faulty air bag.
3) (C) Thirty minutes is the minimum recommended time to road test a car.
4) (A) True when test driving a car, be sure to evaluate the condition of each tire.
5) (D) Car buyers should calculate insurance, maintenance and fuel costs before finalizing any transaction.
6) (A) A buyback guarantee provides used car buyers with a form of protection on their buy.
7) ( C) Your monthly car note should not account for more than a one-third of your monthly income and other financial responsibilities.
8) It’s never a good idea to apply for credit for several months at a time, as it lowers the credit score. Instead, from choosing the best car to securing a an auto loan, allow a month’s time to complete the car buying transaction,
9) (B). It depends on the auto dealer’s reputation and relationship with lending institutions.
Put your car buying skills to the test at Little Joe’s Autos.