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Indiana Department of Financial Institutions

DFI > Education > Education Information > Consumer Credit Education > Quizzes > Car & Loan Quiz Car & Loan Quiz

1. Most used cars sold by private parties have a one-year warranty.

True False

2. A service contract is designed to avoid costly repairs as a motor vehicle gets older.

True False

3. The truth-in-lending law requires that a borrower be informed of the total finance charge.

True False

4. Bodily-injury liability covers the damage to another person's car for which you were at

True False

5. Collision insurance covers damage caused to a motor vehicle by vandalism or floods.

True False

6. The most reliable source for buying a used car is usually:

a rental car company.

a police auction.

a car dealer.

private party sales.

7. (Fill in the blank) warranty refers to the fact that a product will do what it is designed to do.

An extended

An implied

A dealer

An unexpired manufacturer's

8. The truth-in-lending law requires that borrowers be informed of the:

amount financed.

cost of auto insurance.

features of an extended warranty.

reasons a person has been denied credit.

9. The auto insurance coverage for damage to your vehicle as a result of an accident is called:

property damage.

comprehensive.

liability.

collision.

10. Doctor costs for injuries to others resulting from an accident are covered by (fill in the blank) liability.

medical

collision

bodily injury

comprehensive

CAR AND LOAN QUIZ ANSWERS

  1. False
  2. True
  3. True
  4. False
  5. False
  6. dealer
  7. it is designed to do
  8. amount financed
  9. collision
  10. bodily injury liability