Financial Issues of Car Buying - Assignment Example

The paper "Financial Issues of Car Buying" is a wonderful example of an assignment on finance and accounting. I can spend a maximum of $4000 to buy a new car. This price has taken into consideration the price of registration and tax. As I m buying a new car, the price of fixing is included in the total price of the car. Thus no additional charge for fixing will be required.  I have selected the car as Chevrolet Impala 1LT and the cost of it is $2956. This car is very elegant and has a sophisticated look among other cars. The mileage of the car is 4 km/liter with a body style of Sedan. While the exterior body parts of the car are of Metallic Silver Ice color, but the interior side of the car is colored as dark titanium or jet black. The car has various unique characteristics like it has provided curtain head airbags for both the 1st and 2nd row and the wheel base is 112 inches. The car has the facility to control the speed proportion electronically with power steering and audio control buttons on it. Power windows facility and pressure of tires can be monitored through the tire specific technique. The audio system can be secured with passcode in the car and it has a connection point for wireless Bluetooth phone. Knee airbags are also there for the driver and the passenger to protect them from any kind of accident. It has a fuel capacity of 18.5 gallons and fuel consumption is lower than other cars and it is 21 mpg for the urban areas and 31 mpg for high roads (Cars.com, 2014). In cars.com the price of the car is $2956 while on the website of Kelley Blue Book the price for the same car is $28236- $28771.

According to the price of Kelley Blue Book, the car is underpriced in the website of cars.com.

It is surprising to see the wide difference between the prices of the car which is mentioned on the website of cars.com as compared to the price which is mentioned on the website of Kelly Blue Book. The value of the car is highly overpriced on the website of Kelly Blue Book as the price is in between $28236- $28771 and the price in cars.com of the same car is $2956.
Chevrolet Impala 1LT has a mixture of security and safety features and thus this car is easy to insure. As the stability monitoring measures and above-mentioned airbags facilities are provided in the car thus it reduces both risks of accident and premium of the insurance. The average cost for insuring the car is near to $1200 per year. I need full coverage for the car and the minimum price is $1200 per year. I can save on the premiums of insurance rates by doing some research on different companies rather than researching for only one company. Different insurance quotes are needed to be compared with each for different insurance companies and then the lowest rate can be chosen from the options available because some insurance companies also provide discounts and incentives that other companies do not provide. Thus it is necessary to check out for all available options before choosing one.