Business Case Studies & Business Publications

Reggie Needs a Car (B)

Eades, Kenneth M.,...

Case

Reggie Needs a Car (B)

Eades, Kenneth M.; Sinclair, Safiya; Fairchild, Gregory B.; Lucido, Aimee; Maiden, Stephen E.

F-1885 | Published August 7, 2019 | 7 pages Case

Collection: Darden School of Business

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In this case, fry cook Reggie Fuller, who wants to buy a car to ensure that he can consistently get to work on time, asks his mother if she and his sister would like to chip in with him so that he can afford a new Nissan Versa, a cheaper alternative to some of the other new cars he's been looking at. Fuller's mother responds by raising scheduling concerns along with car-related costs outside of monthly payments, such as gas, maintenance, and insurance. Staring down the realization that he just may not be able to afford a new car, Fuller wonders if he should reconsider the idea of getting a used car instead, and asks his friend, an auto mechanic, to educate him on pre-owned vehicles.

This case, alongside its A case, UVA-F-1884, is designed to be taught in a financial literacy course for non-MBA audiences. An important teaching objective is to get students to realize just how costly other expenses can be for a new car: namely, insurance, gas, and maintenance.