Test what you learned: New Car vs Used Car key terms

3 quick questions on the terms from the New Car vs Used Car calculator. Answer one at a time, then see your full results at the end.

Question 1 of 3

"Depreciation" is...

The annual registration fee charged by the DMV A discount dealers apply to last year's unsold inventory The cost of replacing worn tires and brakes The drop in a vehicle's value over time — steepest in the first year of ownership

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Depreciation is the drop in a vehicle's value over time, with new cars losing value fastest in their first year.

Question 2 of 3

"APR" stands for and means...

The dealer's advertised price before any negotiation Annual Percentage Rate — the yearly cost of your car loan, including interest A rating of how reliable a vehicle is expected to be The percentage of the loan you must pay as a down payment

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APR (Annual Percentage Rate) is the yearly cost of borrowing, expressed as a percentage — it's the standard way to compare loan offers.

Question 3 of 3

"Resale value" means...

The original manufacturer's suggested retail price (MSRP) The cost to insure a vehicle for one year What you could expect to sell or trade in the vehicle for later The amount a dealer charges for extended warranties

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Resale value is what you could expect to sell or trade in a vehicle for down the road — a key factor in true cost of ownership.

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This quiz is a learning aid, not a certification or formal assessment. GetRealTerms provides general estimates for informational purposes only — nothing here is tax or financial advice.