Buying a new car can create a financial challenge because:

A. Car insurance rates will decrease over time.

B. Car payments must become part of the budget.

C. Car insurance rates will be higher than renter’s insurance.

D. Car payments are likely to exceed available income.

Answer

The correct answer is B) car payments are part of the Budget.

*Buying a new car can create a financial challenge because car payments are part of the Budget.

Buying a new car must be a thoughtful decision. The person purchasing the new car needs to have the right amount of money or the appropriate income to be financially able to cover the payment. This could represent a financial challenge if the person does not elaborate the Budget correctly. A good Budget contemplates income and expenses, allowing people to determine if they have the money to purchase something or not.