Proj 595 Risk Paper #2
Risk Paper #1 – Vehicle Purchase Risk Assessment
PROJ 595 – Project Risk Management
Introduction
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 long run. In the end I ended up buying a new car despite the known risks and the sneaky unknown risks that snuck up on me.
Risk 1 – Insurance
One the biggest risk that people should look at when buying new, which I unfortunately did not do, is to see how much of an increase it will add to your insurance. Before buying my new car, my car insurance was in the mid hundreds. It was fine because I received my previous car as a hand me down and I did not have to make car payments. But, after everything was said and done and I got the new car I went to the insurance agency to update to my car insurance. To my surprise, the monthly car insurance jumped up nearly an extra two hundred. There were many reasons why, but one of the big reasons for the increase was the fact that 2012 models added a major increase. This was something that I had not known about at all. This was only one of two unknown risks that caught me off guard.
Risk 2 – Maintenance
The second risk is the maintenance costs on new cars. My previous car was pretty old and when it came time to buy new tires they were fairly cheap or if I ever got a dent it was easy to fix since the car was metal. With the new car I had got a high performance car. One of the big risks about high performance cars is how...