Question

John is weighing the choice between buying a new car versus a used car. John has saved money to make a down payment but wants to keep his costs low. John decides to purchase the new car. . A. John should have purchased the used car since used cars are generally cheaper. B. John should have purchased the used car since maintenance and repair costs will be lower. C. John was correct in purchasing the new car since it depreciates faster. D. John was correct in purchasing the new car since it has lower insurance premium.

Answer 1

D

Explanation:

In the end, the used car would cost him more than the new car. This is because the insurance premium for a used car will generally be more than that of a new car. This is because the risks associated with a second-hand car are higher. This is due to the fact that that they are more likely to break down than new cars.