International Baccalaureate (IB) Practice Exam 2025 – Complete Study Resource

Question: 1 / 400

Which action is NOT recommended in the Drive Free method of purchasing a car?

Place your savings in a mutual fund to make more money.

Plan your purchase in advance using the sinking fund method.

Start with an inexpensive car and gradually move up.

Explore new car dealerships for the best interest rate.

Exploring new car dealerships for the best interest rate is not recommended in the Drive Free method of purchasing a car because this method emphasizes minimizing debt and avoiding financing whenever possible. The Drive Free approach advocates for paying cash for the vehicle rather than taking out loans or seeking financing options, which often come with interest rates that add to the overall cost of the car. Focusing on securing the best financing deals can lead individuals back into a cycle of debt, contrary to the method's goal of achieving financial freedom through car ownership without payments.

The other options are well-aligned with the principles of the Drive Free method. Investing savings in a mutual fund can grow funds over time, planning purchases with a sinking fund allows for accumulating funds specifically for a car, and starting with an inexpensive vehicle supports the idea of gradually upgrading as financial stability is achieved. All of these strategies promote a financially responsible approach to car ownership that the Drive Free method endorses.

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