Exercise 4 - Used Car

Used Car – Exercise 4 Our issue is that we need a new vehicle because ours was wrecked and the rental car we were given to use after the wreck by the insurance company is about to expire, leaving us no mode of transportation. We are looking into buying a used vehicle from an advertisement in the local paper. We weren’t sure if the vehicle was still available so we have called the owner and inquired. We do not know who we are buying the car from but we are interested in purchasing the Volkswagen Jetta because of the advertisement in our local newspaper. Just from reading the car ad; we deem that the car fits all our needs and we need to get in touch with the owner fast in order to make sure they don’t sell it to someone else. In order not to have all our eggs in one basket, we have another vehicle prospect that can be purchased, but it’s an older 1995 Jeep Cherokee for $3,800.00. We are hoping to get the Jetta for less than the Cherokee, or somewhere within our budget, but if we can’t, we can always buy Cherokee for less. The issues that are most important are trying to come up with a deal that will satisfy thefinancial limitations we have while getting something that is worthwhile and will give us a return on our investment. The issues that are less important are probably taking a vacation at this point if it means losing out on a car that will be beneficial for us. The issues linked are trying to find a replacement soon as we will have to return the rental since the insurance company will no longer pay forit. Another linked issue is finding a vehicle within our price range so we don’t have to take out a car loan that will most likely yield high interest. Issues that are not linked are the two different kinds of vehicles, the Jetta and the Cherokee. Our interest on purchasing this vehicle is to acquire a means of transportation and fulfill an urgent necessity with a tight budget, because right now we are renting a car, and our lease agreement is