Read through the case study and respond to the task: (Click for IMAGES ATTACHED)

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Read through the case study and respond to the task: (Click for IMAGES ATTACHED)

TC's Cowin Financial Literacy Summer Institute A partnership of Teachers College, Columbia University and the nonprofit Working In Support of Education (w!se) with the generous support of Joyce Cowirn Topic: insurance Case Study: Your First Car What would you pay to protect a car of your own? Background Sweet 16 indeed. Your parents aren't usually good at keeping secrets, but this time they succeeded mightily. Whereas you thought you were simply going to have the traditional birthday celebration out at your favorite restaurant (concluded by a candle-topped dessert with the always-embarrassing birthday sing-along), this time the family-filled car stopped by a car dealership. Your parents present you with a blank check and say take your pick. You can't believe! No way. This has got to be too good to be true Your father explains that his parents did it for him, so they're doing the same for you The only things you have to take care of are the gas and insurance for the car. "Nice," you think. "Nice." Well, almost On the back of your birthday card, thcre is one last catch. Your parents stipulate that before they give you the money to buy the car, you must detail, step-by-step, the process by which you made your decision of which car to choose. It can be in outline form, but it has to persuade them that you have thought of everything After goingto a couple of different car dealerships, taking a few test drives, and imagin ing yourselfpulling up to school with all your friends jealously watching, your parents remind you about the gas and insurance requirements. They note that the "everything referred to on the back of your card means you'll need to provide them with a break- down of the estimated costs for gas and insurance and how you 're going to pay for

Explanation / Answer

With respect to this case,

We must do a research on the internet before buying a car and review its model, making and various specifications of the car. the internet also provides ratings and reviews of the dealership of the car. financial concern is also important before buying a car and ensure that you are rich enough to buy a luxury car like BMW.

While choosing a new or used car, take a look at two same cars, one used and another new. if u buy the car, say $30,000 and sell it for $15,000 after 3 years. the depreciation cost of the new car will be $15,000

Now let us say, a used car is brought which is 3years old, the car can be brought by paying $15,000 and after 3years, it can be sold at $10,000. so the depreciation cost of the used car will $5,000.

therefore buying a new car is a better option.

Choosing a car based on its MPG depends on the miles a person drives. generally, a person drives 12,000 miles a year. the fuel efficiency of the car varies according to the type and model of the car. In this case, BMW fuel is more than rest of the cars.

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