Suppose that Mr Stan buys an old car from Mr Dan for $2000 in a transaction in a bar.....then the car blows up on way home next to a used car yard. Mr Dan has disappeared to the casino. Seeing all the smoke coming from the car, a mechanic comes out from the car yard and takes a look, saying it will cost $1500 to fix (He is a reputable mechanic). Mr Stan's other option is to buy another for $1800.