Subject category:
Finance, Accounting and Control
Originally published in:
2020
Length: 5 pages
Data source: Generalised experience
Abstract
Arjun Seth a 28-year-old, working as a financial analyst was considering to buy his first car. He had selected a Sport utility vehicle, but he was in dilemma if should buy a new car or lease. He spoke to his father and brother, both of whom gave their opinions. There were merits and demerits associated in each option. Lease option had no maintenance cost, no insurance hassle and no loan approval but it did not offer ownership. Buying a car with bank loan involved approval of loan, down payment and maintenance cost apart from fuel and insurance. But it ultimately gave ownership and freedom to resale. Arjun needed to calculate effective cost, considering time value of money for various scenarios to make best decision for himself.
Teaching and learning
This item is suitable for undergraduate and postgraduate courses.Time period
The events covered by this case took place in 2020.Geographical setting
Region:
Asia
Country:
India
Featured protagonist
- Arjun (male), financial analyst
Subject category:
Finance, Accounting and Control
Originally published in:
2020
Length: 10 pages
Data source: Generalised experience
About
Abstract
Arjun Seth a 28-year-old, working as a financial analyst was considering to buy his first car. He had selected a Sport utility vehicle, but he was in dilemma if should buy a new car or lease. He spoke to his father and brother, both of whom gave their opinions. There were merits and demerits associated in each option. Lease option had no maintenance cost, no insurance hassle and no loan approval but it did not offer ownership. Buying a car with bank loan involved approval of loan, down payment and maintenance cost apart from fuel and insurance. But it ultimately gave ownership and freedom to resale. Arjun needed to calculate effective cost, considering time value of money for various scenarios to make best decision for himself.
Teaching and learning
This item is suitable for undergraduate and postgraduate courses.Settings
Time period
The events covered by this case took place in 2020.Geographical setting
Region:
Asia
Country:
India
Featured protagonist
- Arjun (male), financial analyst
Related
Subject category:
Finance, Accounting and Control
Originally published in:
2020
Length: 10 pages
Data source: Generalised experience