Car Financing 101

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Questions and Answers

Before buying a car, it's important to determine how you're going to ______ for it.

pay

If you don't have an ______, your dream of owning a car is dead on arrival.

income

A car takes money to ______, such as gas, servicing, and licenses.

maintain

If you're not financially prepared for a car, your joy may soon turn into a ______.

<p>nightmare</p> Signup and view all the answers

The bills for owning a car will certainly ______ in.

<p>come</p> Signup and view all the answers

what you want to use the car for should determine the choice of car that you're going to buy if you're a banker and all you need is the convenience to go to your job and back then you may consider going for a ______

<p>sedan</p> Signup and view all the answers

if you're a plumber and you frequently move heavy metals and machinery then you may want to go for a ______

<p>pickup truck</p> Signup and view all the answers

if you're a student you may want to get a small car that can help you go to school and back ______

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let's pretend that you live in a mountainous region where snow falls all winter buying a small car will be out of the equation unless you're getting it as an ______

<p>extra</p> Signup and view all the answers

if you drive long distances or you want to have a specific type of car then you may consider buying a ______

<p>new car</p> Signup and view all the answers

Buying a new car has the disadvantage of fast ______ as soon as you drive it off the dealership. If you paid $25,000, the value will drop to $20,000. From then, it will continue to depreciate.

<p>depreciation</p> Signup and view all the answers

Buying a new car has the disadvantage of ______.

<p>higher taxes and insurance</p> Signup and view all the answers

Buying a used car has the advantage of being ______.

<p>cheaper</p> Signup and view all the answers

Buying a used car has the advantage of paying ______.

<p>lower rates and taxes and insurance</p> Signup and view all the answers

Buying a used car has the advantage of putting you in a ______ if you made a good pick.

<p>better financial state</p> Signup and view all the answers

finance a car works like taking a loan from a ______

<p>business</p> Signup and view all the answers

if for instance the cost of the car is twenty thousand dollars you can get your bank to pay the dealer the amount will be spread out to you for a period of maybe five to six years you'll be paying this money to the bank ______

<p>monthly</p> Signup and view all the answers

you can also decide to make a ______ percent down payment for the car based on this example you'll pay eight thousand dollars as a down payment and then your bank will finance the remaining twelve thousand dollars

<p>forty</p> Signup and view all the answers

two ways to finance a car one through a ______

<p>dealership</p> Signup and view all the answers

when you upgrade a car that you're financing your monthly payments will as well go ______

<p>up</p> Signup and view all the answers

Flashcards

Car Payment

Determine your payment method before purchasing a car.

Income

Consistent earnings are essential for car ownership.

Maintain a Car

Cars require ongoing expenses for upkeep.

Financial Preparation

Unexpected expenses can quickly turn car ownership into a burden.

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Car Bills

Owning a car involves recurring bills.

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Sedan

A practical and economical vehicle choice for commuting.

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Pickup Truck

A great choice for transporting heavy items and equipment.

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Depreciation

New cars rapidly lose value after purchase.

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New Car Disadvantages

New cars involve higher initial costs.

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Used Car Advantages

Used cars are generally more affordable.

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Lower Rates

Used cars often have lower recurring costs.

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Financial State

Wise used car purchase improves financial health.

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Finance a Car

Acquiring funds for a car through an institution.

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Monthly Payments

Regular payments made to the lender.

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Down Payment

Initial payment made towards the car's total cost.

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Dealership Financing

Dealerships often offer financing.

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Increased Payments

Upgrading increases your payment amounts.

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