New Car Buying
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Questions and Answers

Which type of car, used or new, is more likely to require repairs and maintenance? (New Car vs. Used)

  • New car
  • Neither used nor new cars
  • Used car (correct)
  • Both used and new cars
  • What is depreciation? (New Car vs. Used)

  • The decrease in value of a car over time (correct)
  • The amount of money you lose when selling a car
  • The increase in value of a car over time
  • The total cost of repairs and maintenance for a car
  • Which type of car, used or new, will mostly cost less to insure? (New Car vs. Used)

  • Both used and new cars
  • New car
  • Used car (correct)
  • Neither used nor new cars
  • What are two advantages of buying a new car?

    <p>Higher reliability and longer warranty</p> Signup and view all the answers

    What are two disadvantages of buying a used car? (New Car vs. Used)

    <p>Lower reliability and shorter warranty</p> Signup and view all the answers

    1. What does the chart above show? (The Common Cost of Operating a Vehicle)

    <p>The average annual cost of operating a car</p> Signup and view all the answers

    1. On average, how much does car insurance cost per year? (The Common Cost of Operating a Vehicle)

    <p>$1,115</p> Signup and view all the answers

    1. How much are the average costs for maintenance and tires each year? (The Common Cost of Operating a Vehicle)

    <p>$766 for maintenance and $147 for tires</p> Signup and view all the answers

    1. Which is the most expensive annual cost to operate a car? (The Common Cost of Operating a Vehicle)

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

    1. How much does license, registration, and taxes cost per year for a car? (The Common Cost of Operating a Vehicle)

    <p>$665</p> Signup and view all the answers

    Which type of car is the chart showing the cost of ownership for? (The Ownership Cost of a New Car)

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

    What is the total purchase price or cash price for this car? (The Ownership Cost of a New Car)

    <p>$20,108</p> Signup and view all the answers

    After five years of ownership, what is the estimated true cost of this car? (The Ownership Cost of a New Car)

    <p>$50,507</p> Signup and view all the answers

    How much did the car depreciate (lose value) in the first year? (The Ownership Cost of a New Car)

    <p>$3,724</p> Signup and view all the answers

    What is the average amount a person will spend on car insurance each year? (The Ownership Cost of a New Car)

    <p>$1,279</p> Signup and view all the answers

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