Reggie Needs a Car (A)

10 Pages Posted: 20 Aug 2019

See all articles by Kenneth M. Eades

Kenneth M. Eades

University of Virginia - Darden School of Business

Safiya Sinclair

Independent

Gregory B. Fairchild

University of Virginia - Darden School of Business

Abstract

This case series simulates the decision of choosing and financing a car. Reggie Fuller is a fry cook on the verge of losing his job if he keeps arriving late to work due to inconsistent public buses. Fuller's dream car, the Lincoln MKS, is priced far beyond his budget ($50,000), but Fuller wonders if he can afford other new cars like the Nissan Altima (which costs $17,445) or the Toyota Camry (which costs $20,306). Unsure of how to proceed, Fuller seeks the advice of a family friend and mentor, who agrees to teach him what he knows about the car-financing process.Accompanying the case is a handout that teaches students how to calculate monthly auto loan payments.

Excerpt

UVA-F-1884

Aug. 7, 2019

Reggie Needs a Car (A)

Introduction

Reggie Fuller checked his watch. It was 8:45 a.m. already, and still no bus. He had to be at work by 9:00 a.m., and he had been waiting at the bus stop for more than 20 minutes, eagerly watching the road for any sign of the Downtown 7 bus. The sun was quickly climbing overhead, and as the morning got hotter and hotter, Fuller's work uniform started sticking to his sweating chest. He wiped the sweat from his forehead and grew more annoyed and irritated with the late bus, as well as the summer heat and humidity.

“If I can be here on time, why can't the bus?” he muttered to himself.

. . .

Keywords: financial literacy, Resilience Education, FICO score, car buying, automobile industry, financing, loans

Suggested Citation

Eades, Kenneth M. and Sinclair, Safiya and Fairchild, Gregory B., Reggie Needs a Car (A). Darden Case No. UVA-F-1884. Available at SSRN: https://ssrn.com/abstract=3438634

Kenneth M. Eades (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4825 (Phone)
434-924-0714 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/eades.htm

Safiya Sinclair

Independent

No Address Available
United States

Gregory B. Fairchild

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/fairchild.htm

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