Money Quiz

Car Loans and Leases Quiz

Question 1: The money factor of a car lease is .0025. This is the equivalent to an APR of:
0.25%
2.5%
0.6%
6%

Question 2: Which of the following lease terms will likely lead to a lower monthly payment? All four leases have the same down payment, fees, incentive and allowed mileage.
$25,000 sales price/ $12,000 Residual Value/ 0.002 money factor
$35,000 sales price/ $17,000 Residual Value/ 0.001 money factor
$25,000 sales price/ $10,000 Residual Value/ 0.002 money factor
$35,000 sales price/ $23,000 Residual Value/ 0.001 money factor

Question 3: The shorter the car loan term,
the higher the interest rate will usually be.
the lower the interest rate will usually be.

Question 4: If you are buying a car from an individual and not from a dealer,
you are not eligible for a car loan
your car loan rate is typically higher than the rate you could get if you bought the car directly from a dealer
your car loan rate is typically lower than the rate you could get if you bought the car directly from a dealer
your car loan rate is equal to the rate you could get if you bought the car directly from a dealer

Question 5: Special Finance is a sector of the auto lending industry:
for borrowers with high credit scores
for borrowers who purchase luxury vehicles
for borrowers with a limited or tainted credit history
for borrowers who purchase commercial vehicles

Question 6: The monthly payment of a 5 years, $15,000 auto loan with an interest rate of 2% is close to:
$260
$290
$320
$340

Press the Submit button to see the results.

External Credit Cards Resources

Student Credit Card Use Could Cause Problems Later from U.S. News
Credit Cards Literacy from the University of Connecticut