Question by Serena: Please help: Automotive Questions about car financing?? ?
1. Why is it important to maintain a good credit history?a. Because your family will inherit it, and it’s important to plan for their futureb. Because anyone can access your credit history at any time to learn about youc. Because a good credit history can generally help you negotiate for a reef finance rated. Consumer protection laws state it is your responsibility to maintain good credit2. What might happen if you fail to make several payments on purchases that you made a year ago?a. The item(s) can be taken away from you, if the item(s) secured the credit obligation you took on when you bought the itemsb. Negative information may be added to your credit reportc. You could be denied credit in the futured. All of the above3. How can you find what your credit history looks like?a. Contact an imputing-reporting agencyb. Ask a private investigator to find out all they can about youc. Look yourself up on the Internetd. Check your family’s credit history4. Which of the following is not something a creditor will look at before granting you credit?a. If you pay your bills on timeb. Where you live and your living arrangementsc. How many credit obligations you haved. How much you owe on all your accounts5. Net income is also known as:a. Taxable incomeb. Alimonyc. What’s left after you pay your billsd. Take-home pay6. About how much of your monthly take-house pay should your car payment not exceed, after subtracting sure monthly expenses, like credit cards?a. 5% to 10%b. 10% to 15%c. 15% to 20%d. 20% to 25%7. In addition to vehicle payment, what other vehicle expenses should be considered in your monthly budget?a. Insuranceb. Maintenancec. Gasolined. All of the above8. Which of the following is a contract with a dealership to buy a vehicle on time by paying the purchase price plus an agreed upon finance charge over a certain period of time?a. Gap protectionb. Aquisition feec. Installment saled. Residual price9. What is one of the major differences between buying and leasing a vehicle if you choose to buy?a. The dealership is listed on the title as the vehicle ownerb. You need to turn in your vehicle to the dealership after a certain length of timec. You will need to pay a security deposit, acquisition fee and other chargesd. You are the owner of the vehicle and your name is listed on the title10. Monthly lease payments are usually lower than monthly finance payments when comparing leasing and financing for the same term because you are only paying for the vehicle’s expected depreciation during the lease term, plus a rent charge, taxes and fees.a. Trueb. False11. When you finance at the dealership, you are entering into an installment sales contract between you and the dealership.a. Trueb. False12. When you lease a vehicle, you are responsible for excess wear and tear, damage and missing equipment.a. Trueb. False13. Which of the following items can you negotiate with your dealership?a. Annual Percentage Rateb. Length of contractc. Price of the vehicled. All of the above14. Which of the following can be used to lower your monthly payment?a. Getting a higher APRb. Choosing the shortest term availablec. Making a larger down paymentd. None of the above15. Which of the following are additional items that can usually be added to the finance contract?a. Optional Credit Life Insuranceb. Option Gap Protectionc. Optional Service Contractd. All of the above16. What is the purpose of purchasing optional disability insurance?a. Covers the gap between the vehicle’s value and what your insurance company provides in the event of total vehicle lossb. Pays the balance of your contract in the event of your deathc. Makes your scheduled car payment in the event of sickness or disabilityd. Protects owners against forced major auto repair expenses17. What is the purpose of a service contract?a. Adds additional time to the vehicle warrantyb. Protects owners against forced studied covered auto repair expensesc. Pays all of the vehicle repairs regardless of the circumstancesd. all of the above18. It is a normal business practice for the dealer to retain some portion of the finance charge as income for the dealership.a. true b. false19.) A rebate is always better than a special finance rate.a. true b. false
Best answer:
Answer by Eric Y
1. c but it shows ur ablility to make payments and not default,,, it do the banks experiencing safer about loaning u money… 2.d3.a there are three major credit companies experian, trans union and one other4. theyll look at all of them 5.a6 depends on what ur comfortable with 7.d8.c9.b10.a11.b you and the financior 12.a13.b and c cant negotiate apr its based on ur credit14.c.15.d16.c17.d but there are certain restrictions 18.a19.b. % apr
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