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Personal and Business Banking

Test Your Auto-buying I.Q.

StreetWise Auto Buying Resources

  • Summary
  • Article

Test Your Auto-Buying I.Q.

  1. If you have read the StreetWise Auto Buying Guide, see how much you've learned.
  2. If you haven't yet, see how much you need to before you shop for your next car.

Test Your Auto-Buying I.Q.

Think you're really savvy enough to save some money on your next car purchase? Excellent! But before you start negotiating, why not take this test? This test, based on information in our StreetWise Buying and Leasing Guides, will tell you in a few minutes how equipped you are to save the maximum amount during your next vehicle transaction.

  1. What's the first thing a smart buyer does when they get in the car buying mood?


  2. What's the primary job of even the best automobile dealership?


  3. What's the main danger of being a Payment buyer?


  4. What's the biggest danger of buying on your first visit to a dealership or web site?


  5. What's the main problem with auto manufacturers' low interest rate sales?


  6. What's the only way to really know a dealership's financing rate is the cheapest rate available to you?


  7. What does it tell you if a dealership won't let you leave with a copy of your completely filled out contract before you sign it?


  8. DCU lends money on used vehicles at new-vehicle rates. Most dealerships charge much higher interest rates for used-vehicle loans than for new vehicle loans.


  9. A DCU loan can save you money over manufacturer 0% financing if you take the rebate instead and use it to lower the price of the car.


  10. Cash buyers have an easier time negotiating the price of a vehicle.


  11. The StreetWise program turns every credit union member into a cash buyer.


  12. What is "Loan Cash?"


  13. What's the definition of Available Cash?


  14. Available Cash is made up of the amount of cash the payment you can afford to make each month will buy you, any equity in your trade-in, and any other cash you have to help you buy a vehicle, such as a rebate check.


  15. Which is the correct amount of "equity" in this scenario: You have an old car worth $9,000; you owe $3,000 on it. Your equity is:


  16. What is the correct amount of Available Cash in this scenario: Your old car is worth $9,000. You owe $3,000 on it. The $400 monthly payment you can afford to make for 48 months will buy you $16,000. You have $1,000 in savings to help you buy a new car. Your Available Cash is:


  17. What does low balling mean?


  18. Smart shoppers at buying services need not be cautious and move slowly.


  19. Many DCU members have saved literally thousands of dollars each by refinancing auto loans from dealerships at the DCU.


  20. If you've already financed a vehicle at another lending institution, you should:


  21. Balloon Payment loans can get you in a lot of trouble because


  22. Walk-away Balloon loans allow you to literally walk away from that big final payment.


  23. What's the main danger of both Leasing and Walk-away Balloon finance plans at most dealerships and on-line financing services?


  24. Which of these statements is not true about buying a used car instead of a new one?


  25. DCU's credit union vision statement is that all members achieve their financial goals.


Now that you've finished taking our test, it's time to see how you did. Just select Score Test.



If you scored 100You got a perfect score! Remain skeptical and you should do okay when you shop for your next vehicle.
If you scored 90 to 99You're well prepared. Good job! Remember to use StreetWise for reference.
If you scored 80 to 89 You did okay. Read the Buying and Leasing Guides again before you shop.
If you scored 70 to 79You're vulnerable. You definitely need more study to protect yourself.
If you scored 0 to 69Your financial well-being may be in danger! Don't go near a dealer until you read the Guides, retake the test, and do much better.