Practice question

A driver buys a used car for £6,000 with a bank loan. Which statement is most accurate?

  1. Loans are always cheaper than paying cash
  2. Credit can spread cost but adds interest (APR); cash avoids interest but needs money upfront
  3. Finance companies never charge interest
  4. Leasing always transfers full ownership immediately

Answer: B — Credit can spread cost but adds interest (APR); cash avoids interest but needs money upfront

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Practice more: CCEA GCSE MVRUS Practice Questions - CCEA GCSE Motor Vehicle and Road User Studies (2017) (Northern Ireland) Exam →