Auto Financing Tune Up

Take this quiz to check your auto smarts!

Question 1: Consumers can obtain financing from the following sources:

Dealership
Bank
Credit Union
Finance Company
All of the above


Question 2: The finance rate (annual percentage rate) offered by the dealership may be negotiable.

True
False


Question 3: You should make the decision to buy or a lease a vehicle based solely on what you can afford in your monthly payment.

True
False


Question 4: Your credit record affects the financing terms for which you are eligible.

True
False


Question 5: The following financing factors affect the amount of the monthly payment:

Annual percentage rate
Down payment
Price of vehicle
Trade-in value of your current vehicle
Length of finance contract
All of the above


Question 6: When you finance at a dealership, you typically are entering into an installment sales contract between you and the dealership.

True
False


Question 7: Which of the following statements is NOT TRUE if you choose to lease, rather than buy?

The dealership is listed on the title as the vehicle owner
You will need to pay a security deposit, acquisition fee, and other charges
You need to turn in your vehicle to the dealership after a certain length of time
You are the owner of the vehicle and your name is listed on the title


Question 8: When you finance a vehicle, the creditor holds a lien (a claim) on the auto title until you have paid the contract in full.

True
False


Question 9: When you purchase a vehicle, you must also purchase an extended service contract, credit insurance, and guaranteed auto protection.

True
False


Question 10: Late or missed payments incur late fees, but do not appear on your credit report.

True
False


Question 11: If you're having difficulty making your payments, you should contact your creditor as soon as possible.

True
False


Question 12: You can get a free copy of your credit report once every 12 months.

True
False

Question 13: With on-site dealership financing, a buyer gets a loan from his or her bank, credit union, or other financial institution to pay for a new or used vehicle.

True
False

Question 14: You may submit multiple applications for financing within a 14-day period without affecting your credit score.

True
False

Question 15: You may be able to refinance your vehicle loan.

True
False