Question

Renee Carter has decided to study medicine at a university in Melbourne. She has arranged to stay with a family on the north side of the city. In order to get to and from the university, she decides she will need to buy a car, costing a maximum of $10 000. She searches the Internet and comes across the following at Car City:

MAZDA 323 Red, 4D Sedan; 5 SP Manual; 2.0 Ltr, 4 cycl; odometer 153 293.

Required ?A. Evaluate how useful this information is in arriving at a decision.

B. List extra information that Renee should ascertain before deciding whether to buy this car.

C. Assume that Renee does purchase the car, and subsequently finds that the car has mechanical problems that will require $2000 to fix. Discuss what she should do, given that she does not have enough money to pay for the repairs.

D. Hypothesise as to how ethical the community regards used car salespeople.

Answer 1

A.

In the above information only the physical appearence is disclosed . Whwere as she should list out the cost , and the history of the cars she is availble such as milage, kilometers ran, Accident records etc. The main thing she should focus is wheather it costs under $ 10000 or not. As she wont be able to buy the car priced above $ 10000 even if she likes the specifications of the car.

B.

The additional informations she needs to explore are:

* the age and previous mileage of the vehicle

*whether the vehicle is mechanically sound or whether certain parts of the car need to be repaired

* Warenty of the car and on the car's parts.

*Total maintence cost and other ongoing cost to be incured.

* And othe substitutes for the car and its other features.

C.

As Reenee has purchased the car by incuring a cost of $ 10000. But later she finds a mechanical fault which will incure $ 2000 but she doesnt have enough money. In such cases either she should return the car or else sell the car. As she is approved only for $ 10000 and she cant incure more than that limit.