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Did You Know?

The current auto financing system employs hundreds of thousands of people, generating tremendous state and federal tax revenue.

Auto Financing Tune Up

Take this quiz to check your auto smarts!

Question 1: The finance rate (annual percentage rate) offered by the dealership may be negotiable.

True
False


Question 2: Should I make the decision to buy or a lease an automobile based on what I can afford in my monthly payment?

True
False


Question 3: My credit record impacts the financing terms that I am eligible for.

True
False


Question 4: The following financing components impact the amount of the monthly payment:

Annual percentage rate
Down payment
Price of auto
Trade-in value of your current automobile
Length of financing
All of the above


Question 5: When you finance at the dealership, you are entering into an installment sales contract between you and the dealership.

True
False


Question 6: Which of the below statements is TRUE if you choose to BUY, rather than LEASE?

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 7: You may obtain financing from the following source(s):

Dealership
Bank
Credit Union
Finance Company
All of the above


Question 8: When you finance a vehicle, the creditor holds a lien 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: Which of the below is NOT one of the three national credit reporting agencies?

Experian
TransUnion
TransNation
Equifax


Question 12: 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 auto.

True
False

Question 13: You may submit multiple applications for financing within a 14 day period without affecting your credit score.

True
False

Question 14: You may refinance your auto loan if you are not satisfied.

True
False