Question Details

(Solved) Consider your last vehicle purchase and the decision making process you engaged in while deciding what vehicle to purchase or if a new vehicle was...


Consider your last vehicle purchase and the decision making process you engaged in while deciding what vehicle to purchase or if a new vehicle was the right decision. While analyzing your decision, keep in mind that everything from the interest rates to the price of gasoline is driven by the economy in one way or another.

Develop a 1,400-word analysis of your decision-making process in which you include the following:

  • Discuss the role of the interest rate and the cost of financing on your purchase decision. Interest rates are derived from the supply and demand for money and the actions of the Federal Reserve System. What was the rate of interest you paid on your vehicle loan? Were interest rates rising or falling at the time of your decision?

In 2013 bought a 2011 Toyota Highlander with 30k miles

  • Examine the influence of gasoline prices on the choice of vehicle you selected.Gasoline prices rise and fall dramatically based on economic supply of and demand for crude oil. When gasoline prices are low, Americans buy larger, heavier autos, SUV's and pick-up trucks. When gas prices are high, Americans purchase more compact and fuel efficient vehicles. When you purchased your last vehicle, were crude oil and gasoline prices rising or falling?

Gas was going down. Bought a V4 Highlander for that reason. 

  • Discuss the following in regard to your household at the time of your purchase:
    • Were you employed? Yes
    • Was the economy growing or contracting (recession)? Growing
    • If you were employed, did you take into consideration the risk that you might lose your job if a recession occurred during the period of your loan pay-back? Yes

A basic assumption of consumers making purchases of large items requiring financing is that their household cash flow will be adequate to cover the monthly loan payments. For most Americans, this also means assuming continuation of their present wages. But many jobs are sensitive to rises and falls in the business cycle, as witnessed by the 10% unemployment rate of the past "Great Recession."

Evaluate the financial trade-offs made when making your purchase. This includes lower maintenance costs for a newer vehicle versus a car payment and higher insurance among other factors. Insurance was low, Went with newer vehicle.

  • Discuss the influence of any of these Federal or state level programs on your decision to purchase a vehicle; or if these did not factor into your decision, explain why or why not:
    • Buying fuel efficient vehicles such as Flex fuel, hybrids and electrics. Did not consider
    • Converting existing vehicles to use alternative fuels (Flex fuel) NO
    • Removing old, fuel inefficient, and high polluting vehicles from the highways
  • Explain the influence of environmental factors such as emissions and health concerns on your decision. No influence, newer vehicle.
  • Discuss the ways in which your purchase illustrates one piece of the circular flow model of economic activity. What are the other parts?
  • Develop conclusions about the economy's influence on personal and business decision making such as purchases, investments, and so forth.

Cite a minimum of three peer reviewed sources.

Format your paper consistent with APA guidelines.

Click the Assignment Files tab to submit your assignment.

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 05, 2019

PRICE: $18

Solution~000200036098.zip (25.37 KB)

Buy this answer for only: $18

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 05, 2019

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now