10.4 Budgeting for Transportation | Baamboozle - Baamboozle

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Why do teen drivers pay the highest car insurance rates?

answers will vary

Female teen drivers usually pay less car insurance than male teen drivers

False

True

how are LEASE payments determined?

covers the depreciation of the vehicle + interest.

covers only the interest on the loan.

covers overall maintenance on the vehicle.

How much is car insurance (full coverage) for a 16-year old driver?

$1,200 a year for full coverage

$600 a year for full coverage

$7,625 a year for full coverage

What are some ways you can lower your car insurance as a teen driver?

Answers will vary

Which is not a guideline suggested when buying a car?

Pay your for car in cash to avoid paying interest

Only buy cars that are brand new

Buy a car that is at least 5 years old

Be able to save an equal amount to your car payment

All of the following are potential benefits of NOT owning a car EXCEPT:

Opportunities for exercise

Reduced carbon footprint

shorter commute

What is one alternative to owning a car?

answers will vary

Which of the following costs would increase if you had a longer commute to work or school?

Vehicle registration fees

Car payments

Fuel and Maintenance

Parking fees

Which sentence best describes depreciation?

general increase in prices and fall in the purchasing value

the reduction in the value of an asset over time.

True or False: From a financial perspective, buying a new car is always better than buying a used car.

False

True