The Purchasing of Another Vehicle

INTRODUCTION

The purchasing of another vehicle could be considered a major purchase considering my future plans of marriage and purchasing a home has not been finalized as of yet. The purchasing of this new vehicle is my major financial project for 2014 and I will have to carefully plan, analyze, assess the potential risk and prepare a contingency just in case I choose an alternative course of action. This purchase is one of the single major purchases that I have planned this year, and it may eliminate another great purchase and that would be the purchasing of a home. Several levels of risks can be associated with this purchase and it can be categorized from high, medium high, medium, medium low and low risk. I would conclude that this purchase is a medium-high risk project.

ANALYSIS

There are a lot of factors that contribute to how often risks occur and how sever risk could be. As I have pondered purchasing a new car, there must be an undeniable understanding of what the dealership is offering through their contractual agreement. This is done by knowing and ranking the risks in categories, and properly analyzing the identified risk.

RISK - WANT vs. NEED

The purchasing of a home or planning for marriage can be listed as major priorities as well as have a great deal of financial implications for a family or individual. The purchasing of a luxury vehicle can be included in this category as well. There are several factors that must be considered when making a major vehicle purchase. For example, should the vehicle be a sports car (coupe), convertible, or a sedan so as the family grows, another vehicle would not have to be purchased. It must have the appropriate amount of space for a growing family and other activities that the family may need it for work (equipment) and sporting activities for the family. When considering what vehicle to purchase all these factors must be considered and the number of risk must be mitigated. Also, there will be many different scenarios that the buyer will have to think through based on what those cascading of needs are.

RISK 2 - FINANCIAL

The financial state of the buyer can stated as the highest priority when making a decision to purchase the new vehicle of choice. The decision on what type of car to purchase is all based on several factors and they include the following: Annual Percentage Rate (APR), down payment amount, credit score, maintenance, insurance, model and total car amount. The buyer sometimes in order to appease the want and desire, they may sacrifice and pay a slightly higher cost for the vehicle and ultimately increasing the potential risk of this project.

The buyer knows the inherit risks of not having the amount of funds to procure the vehicle is critical. Unless the buyer has the funds the purchase