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Essay/Term paper: The cost of buying a used car

Essay, term paper, research paper:  Economics

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The Cost Of Buying A Used Car

This project has been put together to show the cost of buying and using
a used car for one year. To show the different costs for cars I have made a
chart on a later page. First, though, It probably would be good to tell a
little about used cars.

Used cars are, for some, a good investment. The used car is good for
cheap transportation, and fun. Used cars also have many different uses besides
just driving around. Some people buy used cars so they can restore them, while
other people buy used cars for their children to drive. While still others get
used cars for spare parts. The point is that used cars are good for many
different people, for many different reasons.

Some people like to own new cars and so they get rid of their old cars
to make room for the new car. This proves very useful for the person that
cannot afford a new car. Unfortunately, the used car is rarely in perfect
condition, and can sometimes require some minor repair. Of course, one can't
expect to find a great used car that does not cost more then a car in worse
condition, but this is to be expected.

When one goes to buy a used car they should look for some key things,
before buying the car:

1. Check the car's interior thoroughly. Was the car kept clean all this
time or was it neglected? Is it up to what would be par?

2. Get an unbiased mechanic to look at the engine and look over the
entire car. Do they think that it is in good driving condition? Do you think it
is in good driving condition?

3. Look at the car's paint job. Is it what you would want? are there
any rust spots, dings, or scratches?

4. Finally one must ask themself if the total car is what they wanted.
If there is any doubt then they might want to rethink whether they really want
this car.

The chart below is a comparison of five cars each with a different set
of options, price, and look.

Make Price Options 1986 Ford Taurus Wagon
$ 3,500 AC, AM/FM Cassette, PS 1969 VW Bug $ 2,000
Convertible, AM/FM Stereo, Dual Exhaust 1965 Pontiac GTO $ 8,500
Convertible, 4speed, PB,PS,New Top 1979 Mercedes-benz450slc $11,000 Garaged,
51,000 mi. sunroof, AC, V8 1975 Ford Maverick $700 New Valve job,
3-speed Manual, Steel Wheels
Am-Fm Cassette

As one can see from the chart above you cannot always judge a car from
it's price. Now it is time to calculate the price of using the car for one year
using set values for gas and insurance.

The average gas consumption for these cars should be about three tanks
of gas every two weeks. At 52 weeks a year we get 78 tanks of gas a year. Then
we need to multiply by the amount it costs for a tank of gas. In our case that
gas is about $13.00 a tank. That comes to about $1014 dollars a year on gas.

Then we add about thirty dollars more for oil changes. Our total comes
to about $ 1044 dollars. Now that the gas has been figured we add that to the
price of the five cars.

+ $1044

Ford Wagon: $ 4544
VW Bug: $ 3044
Pontiac GTO: $ 9544
Mercedes-Benz: $12,044
Ford Maverick: $ 1744

Next we add our average teenage driving insurance to the cost.

+ $1600

Ford Wagon: $ 6144
VW Bug: $ 4644
Pontiac GTO: $11,144
Mercedes-Benz: $13,644
Ford Maverick: $ 3344

One can see the price of buying and using any car for one year is fairly
expensive, although these figures would vary from person to person.

The purchase of a good used car would greatly benefit someone that needs
a car. The used car is inexpensive and is a good deal for the buyer and seller
of the car. if a person wants a used car, and looks for the best deal, then they
can certainly find one.


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