Purchasing a new car

INTRODUCTION

The next work is to understand the advantages and disadvantages of buying a new and used vehicle. Later we will analyze the cost of purchasing a new and used vehicle. Bellow we will see the description of the new and used vehicle, an estimate of the value of each vehicles after 3 years, an estimate of the costs of a loan and other charges required to purchase the new and usedvehicle. Finally we see the total costs of purchasing and operating each of the selected vehicles.

4. a) Description of the new car and used vehicle:
i. What kind of vehicle would you like or need to buy?
I would like to buy a MAZDA 3.

MAZDA3 (2008) MAZDA3 (2011)

ii. What features would you like the vehicle to have?
I would like that the vehicle have:
* AM/FM stereo
* Clockin radio
* CD player
* Integrated roof antenna
* Power mirrors and power windows
* Power locks and remote entry.

Advantages and Disadvantages of each vehicle:
* Advantages of used vehicle: An advantage of my used vehicle is less expensive than buying a new vehicle. Another advantage is that is easier for me to afford it and I can buy privately.
* Disadvantages of usevehicle: A disadvantage of my used vehicle is that probably it will need some repairs and the car worth is less than a new vehicle.
* Advantages of new vehicle: An advantages of my new vehicle is that it won’t need repairs and the car worth is high than the use vehicle.
* Disadvantages of new vehicle: A disadvantage of my new vehicle is that probably I can’t afford it.
b) Estimation of thefuel cost for each vehicle:
I) New Vehicle: City: 8.7 L/100 Km.
Highway: 6 L/100 Km.
Used Vehicle: City: 8.4 L/100 Km.
Highway: 6.1 L/100 Km.
II) The type of fuel used for both vehicles is regular fuel, the cost per litre for the fuel is $ 0.95.
III) 32 Km to work + 32 Km to home = 64 Km.
64 Km x 5 days = 320 Km.
320 Km + 50 Km on the weekend =370 Km weekly.
370 Km x 50 weeks = 18,500 Km yearly.
IV) I’ll travel on 2 week road trip to Toronto, Ontario:
2,300 Km to go + 2,300 Km to return = 4,600 Km.
I’ll drive during my stay in Toronto 1,200 Km.
4,600 Km + 1,200 Km = 5,800 Km.

Estimate of Annual Distance Travelled Day. | Distance Travelled |
1. Monday to Friday (daily distance) | 64 Km x 5 = 320 Km. |
2. Saturdayand Sunday | 50 Km |
3. Total distance travelled for one week | 320 Km + 50 Km = 370 Km |
4. Total Distance travelled for 50 weeks. | 370 Km x 50 weeks = 18,500 Km. |
5. Distance travelled on 2 weeks road trip. | 5,800 Km. |
6. Total Distance travelled in one year. | 18,500 + 5,800 = 24,300 Km |

V. Estimation of the total number of litres used in one year and the cost fuelfor one year for each vehicle:
I travelled a total of 1,900 Km in the city and 4,600 Km on the highway.
* Used Vehicle:
City: 8.4L/ 100 x 19,700 Km = 1,654.8 L/100 Km.
Highway: 6.1L/ 100 x 4,600 Km = 280.6L/100 Km.
Total litres needed a year = 1,654.8L/100 Km + 280.6L/100Km = 1,935.4L/100 Km.
Total fuel cost needed = $ 0.95 x 1,935.4L/100Km = $1,838.63 Yearly.

* NewVehicle:
City: 8.7L/100 x 19,700 Km = 1,713.9L/100 Km
Highway: 6L/100 x 4,600 Km = 276L/100 Km.
Total litres needed a year = 1,713.9L/100 Km + 276L/100 Km = 1,989.9L/100 Km.
Total fuel cost needed = $ 0.95 x 1,989.9L/100 Km = $ 1,890.41.
VI. Average of the monthly cost for fuel for each vehicle:
* Use Vehicle: $ 1,838.63/12 months = $ 153.22 Monthly.
* New Vehicle: $ 1,890.41/12months = $ 157.53 Monthly.
c) Calculations of maintenance for each vehicle.
* Use Vehicle:
Basic Maintenance | Cost |
Oil Change and replace filter | $ 50 x 3 times = $ 150 |
Replace antifreeze | $ 100 |
Wiper blades | $ 25 |
Tune- Up | $ 155 |
Subtotal | $ 430 |
Major Replacement | Cost |
Brakes | $ 400 |
Total | $ 430 + $ 400 = $ 830 |

* New Vehicle:
Basic...