Risk Paper #1 – New Vehicle Purchase Risk Assessment

Introduction Whenever considering a major purchase in life one must carefully consider the risks associated with making these purchase decisions. These decisions should be treated as projects in such a way that proper planning, analysis, risk assessment and contingency should all be aspects of the purchase process whether formal or informal. Purchasing a new vehicle, like so many other major purchases (likely the second largest purchase one may make in their lives behind purchasing a new home), is no exception. Several risks accompany these decisions, these risks rank from high probability – high risk to low probability – negligible risk.
Analysis
Many factors contribute to the frequency and likelihood of risks as well as the severity of these risks. When considering purchasing a new vehicle careful consideration must be taken before signing a contract and driving the vehicle off of the lot. Each buyer will undoubtedly rank these risks differently; however the following analysis represents how one individual may assess these risks.
Risk 1 – Needs Family and career needs are typically a high priority not only when purchasing a new vehicle, but also when considering the necessity of a new vehicle. Possibly one’s family is growing and the two seat sports car just will not cut it anymore. When considering a new vehicle this is often a priority for young families and must be considered as a high priority risk, making sure to purchase a car that meets their needs and has an appropriate amount of room to accommodate their growing family. Another example may be a contractor that needs a new vehicle for work; this may necessitate a truck or van that can carry lumber, ladders, buckets, trash and the like. Possibly the contactor has a trailer at which point towing capacity and capability may come into play or they