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Proj 595 Risk Paper #2

978 words - 4 pages

Risk Paper #1 – Vehicle Purchase Risk Assessment

PROJ 595 – Project Risk Management

Major life decisions should never be taken lightly. The only major life decision that I have ever made was buying my first car. When it comes to buying a car there are always a slew of risks that come with it. There were many things to consider here before even going out to visit the dealerships. First would I buy the car new, if so which car maker would I go with, each car maker has their own risks that come with buying their car. Or would I go the used route and tackle all the risks that come with buying a used car. I also needed to consider which route would be cheaper for me in the ...view middle of the document...

One of the big risks about high performance cars is how much more you have to take care of them. For one, they need to have high performance tires, mainly because if you have a high performance car and do not put high performance tires on them it makes it pointless buying the car as the car will not be able to perform to its peak ability. With high performance tires you need to rotate them far more that you do regular tires because they do not last as long as regular tires. I was not aware of this information and within 6 months I had to replace all four original tires. The cost of just two tires would be able to buy me four new tires for my old car. This was a major unknown money risk that I wish I had known of pre hand. Now that I know this, I rotate them at least once a month now.

Risk 3 – Price
Price is the biggest risk as it applies not only to how much it will cost to buy the car, but also how much resale value it will have after the fact. “As soon as you drive a new car off a dealer lot it will instantly depreciate between $1,000 - $2,000! After the first three years most cars are worth only about 60-70 percent of their original value.” (Should I Buy A Used Car?) This is a big factor if you plan on trading in the car in the future. This risk was easy for me as I intend on having this car for a long time meaning this risk was a not a concern. The other risk of buying new was would I be able to afford it. I knew that I would have to put down a large enough down...

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