Wk6DQ1 - buy something that you may later regret. Even...

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It is important to go through these steps when you are making a large purchase; As it shows in figure 7.1 of Personal Finance the steps you should take when making a large purchase are: 1. What do you need? 2. What can you afford? 3. Should you lease or buy? 4. Identify alternatives. 5. Compare based on attributes and price. 6. Negotiate terms of purchase contract. 7. Decide between financing alternatives. You need to ask yourself whether you actually need the item. Your needs have a greater importance than your wants. If you do not really need it and you just want it, you probably should not buy it. If after six months of still wanting the item do some investigating on which is the better and cheapest product, then go ahead and make the purchase; but only if you can afford to do so. Like buying a new vehicle, it is very important to develop good purchasing skills and avoid situations where you might do or
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Unformatted text preview: buy something that you may later regret. Even though you may need a new vehicle, you may not have enough money or income to pay for it. There are other alternatives however, such as car pooling, using light rail or buses, bicycling, walking, until you are able to afford it. If money is not a factor, you could purchase a new car with every option available. However, most people must make their purchase decisions based on there other priorities. Although price is usually a major factor, most people enter into the car-buying process with other objectives, too, whether safety and reliability, sufficient size for a growing family. Other things to consider are the price of the vehicle, (will you be able to afford it) whether you want to buy new or used, is it fuel efficient, (how many miles per gallon) safety and reliability, does the vehicle have warranties (if used)....
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This note was uploaded on 11/21/2011 for the course PERSONAL F 101 taught by Professor Agnew during the Spring '10 term at University of Phoenix.

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