Cwmc Module 5: Car Competency Test

12 Questions | Total Attempts: 113

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Module Quizzes & Trivia

This quiz is part of LFE Institute's CWMC (Certified Workplace Money Coaching) course. It will test your proficiency in the Car Module (Module 5) of the program. The questions are all multiple choice, and are designed to be a review of this Module. Let LFE know when you've successfully completed this test and are ready to take the Associate Level (Level 1) Test. Correct answers required for passing grade: 10/12


Questions and Answers
  • 1. 
    If a woman owns a car with 80,000 miles that needs about $1,800 in repairs to put it in good running order, you should recommend that she:
    • A. 

      Fix the problems right now and keep the car

    • B. 

      Buy a used car with lower mileage

    • C. 

      Purchase a new car with extended warranties

    • D. 

      All of the above would be good alternatives

    • E. 

      None of the above. Our role is not to recommend, but to provide education on the alternatives that may be available.

  • 2. 
    Where is the best place to find the lowest price on a good used car?
    • A. 

      Google the model you want to buy

    • B. 

      Www.AutoTrader.com

    • C. 

      Www.craigslist.com

    • D. 

      Local newspaper and/or local auto dealerships

    • E. 

      Shop and compare prices at all of the above sources

  • 3. 
    With the current economy, employees will find the best bargains on which of the following type of cars?
    • A. 

      New cars

    • B. 

      Used cars

    • C. 

      Hybrid models

    • D. 

      All of the above will be at bargain prices

    • E. 

      It depends on the needs of the employee whether an automobile is a bargain or not

  • 4. 
    Leasing a vehicle offers which of the following benefits?
    • A. 

      The down payment is generally fairly low

    • B. 

      You can walk away from the lease at any time; just turn in the vehicle in good condition

    • C. 

      You will never have to pay for any repairs

    • D. 

      You will own the car at the end of the lease

  • 5. 
    The biggest financial traps for consumers who purchase a vehicle are: (check all that apply)
    • A. 

      They pay more than the lowest price the seller was willing to sell it for

    • B. 

      They negotiate monthly payment, but fail to negotiate interest rates and total price

    • C. 

      They don't purchase an extended warranty package at the dealership; it's cheaper than adding it later

    • D. 

      They don't trade in their car at the dealership where they'll get the best price for it

  • 6. 
    Currently, a hybrid is a good buy for which of the following reasons?
    • A. 

      Hybrids are cheaper

    • B. 

      Any extra cost paid for hybrids will be offset within two years in gas savings

    • C. 

      Hybrids are safer to drive

    • D. 

      Hybrids are more reliable than conventional automobiles

    • E. 

      None of the above are true

  • 7. 
    The best reason NOT to purchase a car right now is:
    • A. 

      The auto industry is struggling, so they may not be in business in the future, which will void the warranties

    • B. 

      There aren't many good deals on automobiles right now

    • C. 

      It's smart in this economy to avoid taking on any additional debt

    • D. 

      It's the wrong time of year

    • E. 

      None of the above; it's a great time to purchase a car

  • 8. 
    A businessman who takes good care of his vehicle, only puts 10,000 miles per year on it, and wants to drive a new car every other year will find the best option is to:
    • A. 

      Rent a car

    • B. 

      Lease a car

    • C. 

      Buy a car and trade in his vehicle at the dealership every two years

    • D. 

      Buy a car and sell his vehicle on his own every two years

  • 9. 
    Which of the following sets of items are negotiable when purchasing a car? (check two)
    • A. 

      Warranty, service contract, interest rate

    • B. 

      Price, terms, service contract

    • C. 

      Interest rate, down payment, trade-in value

    • D. 

      Down payment, warranty, price

    • E. 

      Payments, proof of insurance, terms

  • 10. 
    Which of the following methods can make you more money when selling your car? (check three)
    • A. 

      Sell the vehicle yourself on www.AutoTrader.com

    • B. 

      Trade in your car at the dealership

    • C. 

      Advertise in your local paper

    • D. 

      Use an online auction

    • E. 

      Sell the car on your own with a sign in the window

  • 11. 
    Women tend to pay more for cars because: (check all that apply)
    • A. 

      Dealers take advantage of them

    • B. 

      Women aren't as comfortable negotiating

    • C. 

      Women generally don't research online for the best prices

    • D. 

      None of the above; dealers give women the best prices.

  • 12. 
    The best time to purchase a vehicle is:
    • A. 

      During a storm

    • B. 

      The end of the month

    • C. 

      The end of the quarter

    • D. 

      The end of the model year

    • E. 

      Any of the above. Buy when others aren't shopping or when salespeople are trying to meet quotas.