So a few years ago, in high school, I was in a Latin language class. I was taught that the language had died out. We then started to learn words like "car" 'train" and "telephone". How is this possible since the latin language died out well before these inventions.
Hello! The Vatican still uses Latin and continues to update it with modern vocabulary through the Pontifical Academy for Latin, which recently replaced the Latinitas Foundation. You can check out the Italian-Latin Lexicon Recentis Latinitatis here. Most of the words are pretty straightforward, like follis canistrique ludus for "basketball" (literally "ball and basket game"). :)
As /u/ScipioAsina points out, Latin is still in use. There are a number of sources for neo-Latin vocabulary, they are often coined by long periphrastic phrasings (essentially describing the object in Latin terms). Latin use is not limited to the Vatican, as there are a number of organisations dedicated to continued use of Latin as a living language.
The late David Morgan's excellent lexicon page here lists a great deal of modern vocabulary.
First of all, Latin didn't really die out. It just evolved. It turned into Italian, French, Spanish and so on. So often it's easy to invent a Latin word for a new thing by back-converting the Italian or Spanish word.
In addition to neo-Latin inventions, words can change meanings: the English word car is in fact derived from a Latin word - "carrus". Which meant a horse-drawn cart. After automobiles were invented, the word quickly changed meaning.