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Auto Loan Basics: Chapter 4 quiz

If you think you've mastered the material in this chapter, take our quiz. After you click the ''submit'' button, the answers will appear below.

  1. Residual value is:

    Another term for capitalized cost
    The depreciation of the car's value
    The value of the car before the lease begins


  2. With leasing, you:

    Make higher monthly payments but get to drive the latest model.
    Build no equity but still get to sell the car at the end of the lease.
    Make a lower down payment but always have a car payment to make.


  3. Which of the following is not true?

    The higher the residual value, the lower the monthly payments will be.
    You want the lowest APR you can get on the lease.
    Typically, leases extend for 24, 36, 48 or 60 months.


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Auto Overnight Averages
Product Rate +/- Last week
48 Mo Used Car
7.50%
7.51%
48 Mo New Car
7.05%
7.12%
36 Mo Used Car
7.39%
7.43%
36 Mo New Car
6.90%
6.96%
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Hyundai and Kia have come a long way with quality while keeping prices low.
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