Question

5 which of the following should be considered when purchasing a car?

it should serve your transportation needs, but leave you with considerable assets
it should have the gps feature for traveling purposes
it should be a status symbol for who you are
it should be new in order to decrease the risk of break downs

Explanation:

Analyze the core objective

The question asks what should be considered when purchasing a car from a personal finance perspective.

Evaluate the options

Using the Car Buying Process knowledge point:

• Option 1: "It should serve your transportation needs, but leave you with considerable assets" aligns with sound financial planning. A car is a depreciating asset, so it should meet utility needs without draining your overall financial health or net worth.
• Option 2: "It should have the GPS feature..." is a specific, non-essential luxury feature rather than a fundamental purchasing principle.
• Option 3: "It should be a status symbol..." represents emotional consumer behavior rather than a sound financial consideration.
• Option 4: "It should be new..." is financially inaccurate, as new cars suffer rapid depreciation, and reliable used cars are often better financial choices.

Therefore, the first option is the most rational financial consideration.

Answer:

• (A) It should serve your transportation needs, but leave you with considerable assets (Correct answer)
• (B) It should have the GPS feature for traveling purposes
• (C) It should be a status symbol for who you are
• (D) It should be new in order to decrease the risk of break downs