Major Purchases, Part 4
Question 1: Discuss reliability and warranties with regard to purchasing a car.
Answer 1: Consult car-buying guides such as Consumer Reports and talk to people you know who own the make and model you are thinking about buying. Compare warranties; they could differ greatly. You are guaranteed for general reliability and quality construction of a car for a certain amount of time (usually at least three years or 36,000 miles, whichever comes first), and the manufacturers will have to repair or replace defective parts at little or no cost to you. Be sure to read the fine print because most warranties do include qualifications and limitations.
There are lots of good resources about Purchases that you can find available.
Question 2: Discuss the pros and cons of gas, diesel, and hybrid cars.
Answer 2: While diesel-powered vehicles offer better fuel economy than gasoline-powered vehicles, that advantage may be offset by the fact that diesel fuel costs more than gasoline. Hybrid cars blend gas and battery power and are increasingly popular due to their improved technology and steep gas prices. While more economical in terms of fuel, the cost of battery replacement is high and these cars typically have a substantially higher initial purchase price. Also, the fuel cost savings in hybrids will generally not justify the cost differential.
Question 3: Discuss advantages and disadvantages of buying a used car.
Answer 3: A used car will not depreciate as rapidly as a new car. Because used cars are less expensive, the down payment will be lower. There are many low-mileage late-model used vehicles available because of the number of consumers who use short-term car leases. Because federal laws require sellers must sign a statement that the odometer is accurate, there should be no questions about accuracy. The biggest disadvantage to buying a used car is the unknown of its mechanical condition. A car could have low mileage but have mechanical problems and expensive repairs in the future that cannot be determined during a test-drive. If you are thinking of buying a used car, having it inspected by a good mechanic first is imperative.
Previous: Major Purchases, Part 3 - Next: Management Functions, Part 1
|
