Purchase Solution

decision to buy a new car

Not what you're looking for?

Ask Custom Question

The concept of this problem is to make the decision to buy a new car.

"Purchasing a new car"

I like that some OTA help me to find all of the Pros and Cons of making the decision to purchase a new car.

We need to think about macro & microeconomics and any other psychological, sociological or business concepts that may affect the decision.

We need to put the managerial economics concepts into focus....into practical application.

Please be advise that the require concepts must be logical concepts and no from the web site.

Purchase this Solution
Solution Summary

The decision to buy a new car can start from the substitutability of a car versus all the other choices.

Solution Preview

Hello,

The decision to buy a new car can start from the substitutability of a car versus all the other choices. Of course, this utility (satisfaction/need) depends on the individual. The choices can include public transportation, walking, motorcycle, bicycle, car, etc.

Assuming the decision is to buy a car after all, then next comes what kind of car will satisfy the demand of the customer. This question depends on the supply and demand of each particular type of car. For example, is cost a ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • The Buying Decision Process

    How often they buy- Is it only when they buy a new car which could be every 5 years or lease a new car which is every 2 years? This can help you with timing your marketing campaigns correctly. 3.

  • MAD and MSE

    Sixty-five were women and had bought a new car last year. Eight hundered eleven of the responses were men who deid not buy a car last year. Nine hundred eighty-four were from women who did not buy a car last year.

  • Should Susan Crossing keep the Ford Focus?

    Required a. In trying to decide whether to repair the Ford Focus or buy the Honda Civic, Susan is upset because she has already spent $13,150 on the Focus. The car seems like it costs too much to sell at such a large loss.

  • Buy or Lease Decision for a New Car?

    57978 Buy or Lease Decision for a New Car? You can buy a car for $25,000 and sell it in 5 years for $5,000. Or you can lease the car for 5 years for $5,000 a year. The discount rate is 12 percent per year. a. Which option do you prefer? b.

  • Lease vs. Buy Calculations

    Buy Calculations 1) You want a new car. Price of car $40,000, you can purchase for $37 K. You can lease it for $5000 down, and payments of $650 per month for 60 months with the option to buy for $1000 at the end of the lease.

  • Lease or Buy? - Time Value for Decision Making

    528059 Lease or Buy? - Time Value for Decision Making A. Ted wants to buy a new Volvo. He plans to put $20,000 down and finance $30,000 for 5 years at 12% interest.

  • What was your BATNA (Best Alternative to a Negotiated Agreement)?: An Explanation of the Decision-Analytic Approach

    An offer from another dealer to offset $1,500 against the price of a new car. (Do I want to buy a new car right now; the offered car in particular? Also, is the probably minuscule reduction in monthly payments worth $1000 to me today?)

  • Rational Decision Making Model: Improving Decisions

    Then, discuss that decision in terms of the rational decision making model. How could you have improved your decision? The last decision I made was to purchase a new car.

  • Buy versus Lease: Calculate the best option and compute the

    a. Which option do you prefer? b. What is the maximum annual payment amount you should be willing to pay to lease rather than buy the car? Buy versus Lease. You can buy a car for $30,000 and sell it in 5 years for $4,500.

View More Related Solutions