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ACCA Exam Countdown: Buying a car – what would you advise?

Every week in the run-up to the ACCA exams in December, Caron Betts will be guiding us through exam preparation from a tutor’s point of view.

I have spent the past few weeks test driving different cars, and this week I finally got to collect my new car. Whilst I have been going through this decision process, I have also been busy marking mock exams and the challenging Section C “constructed response” questions.

In these, the student is faced with a scenario and has to apply their accounting knowledge and business acumen to the particular set of facts.  It’s not a “one size fits all” answer that the examiner is looking for, but an evaluation of the situation with a conclusion of the best way forward.

Therefore, for this week’s blog, I am giving you the facts I needed to take into consideration when choosing a replacement for my much-loved black Audi A4 Avant…

  • The Audi has been extremely reliable and there is a local garage that can carry out the regular servicing.
  • If I replaced with a new Audi then my current branded roof bike racks would fit, and I am a keen cyclist.
  • I like to park my car in my garage each night, but the new Audi is wider and does not fit unless I fold in the wing mirrors.  It does not have electric wing mirrors.
  • The Honda HRV is appealing in terms of economy and would meet my needs for luggage capacity.  The roof is much higher than an estate car.
  • The Honda gear box seemed a little “clunky” and I am not sure how that would be on long journeys.
  • The SEAT Leon Tourer 1.4 petrol had good fuel economy but lacked the turbo diesel that I was used to.
  • The diesel version of the SEAT was available in black but my husband had vowed not to have another black car as they show the stone chips.

As you can see there are a number of variables to be considered – and that is before reviewing the financing options!

In an exam, students need to sort out what are the most important factors affecting the decision, and explain how any negative aspects of the decision could be overcome.  It’s about suggesting solutions to the problem and finally coming up with a proposed course of action.

My thanks must therefore go to Robinsons of Lowestoft who sourced me an automatic, diesel-engined, grey, SEAT Leon ST with electric folding wing mirrors. I am still trying to solve the bike rack problem …

 

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Caron Betts

Caron Betts

Caron is an ACCA tutor with AVADO, delivering online accountancy training. She's an experienced tutor specialising in corporate and business law, financial management, business strategy and UK taxation.

Posted November 24, 2017