Car Buying 101

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Questions and Answers

True or false: Getting preapproved for a car loan can lead to significant savings?

True (A)

True or false: Car dealers often charge higher interest rates than banks for car financing?

True (A)

True or false: It is recommended to print out your quote when negotiating for a new car.

True (A)

True or false: The dealer’s invoice price is what the car dealership bought the car for plus any incentives they received from the car manufacturer.

False (B) Signup and view all the answers

True or false: Bait and switch is when a dealer advertises a car at a very low price to lure you in, but when you show up, they say it’s already been sold.

True (A) Signup and view all the answers

Match the following terms with their definitions:

Sticker price = Price that appears on the window sticker of the car, also known as MSRP Dealer’s invoice price = Price the car dealership bought the car for minus any incentives Bait and switch = A scam where a dealer advertises a car at a low price to lure you in, but the car has already been sold Forced warranty = A scam where dealers try to hit you with a mandatory warranty for a high price Signup and view all the answers

Match the following websites with their functionality:

Edmunds = Find the dealer’s invoice price for a car True Car = Find the dealer’s invoice price for a car Kelley Blue Book = Find the dealer’s invoice price for a car Manufacturer's website = Find the MSRP of a car Signup and view all the answers

Match the following tactics used by car dealers with their descriptions:

Focusing on Monthly Payments = A tactic where dealers try to get you to focus on the monthly car payment and not the purchase price Sneaking a warranty = A scam where the dealer tries to include a warranty in the terms of your deal, inflating the monthly price Selling extras = A tactic where dealers aggressively try to sell you additional features like VIN etching, fabric protection, paint protection, under coating, and extended warranties Signup and view all the answers

Car Buying 101

Choose a study mode

Podcast

Questions and Answers

True or false: Getting preapproved for a car loan can lead to significant savings?

True or false: Car dealers often charge higher interest rates than banks for car financing?

True or false: It is recommended to print out your quote when negotiating for a new car.

True or false: The dealer’s invoice price is what the car dealership bought the car for plus any incentives they received from the car manufacturer.

True or false: Bait and switch is when a dealer advertises a car at a very low price to lure you in, but when you show up, they say it’s already been sold.

Match the following terms with their definitions:

Match the following websites with their functionality:

Match the following tactics used by car dealers with their descriptions:

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