You are considering selling your car and replacing it with a smaller, more fuel-efficient model. The new

Question:

You are considering selling your car and replacing it with a smaller, more fuel-efficient model. The new car will cost you \($19,000\) including all taxes. Your existing car is fairly new, you bought it only six months ago, but you underestimated its operating costs. You estimate you can sell it for \($14,700\). The existing car uses 12 litres per 100 kilometres travelled while the new one is rated at 8 litres per 100 kilometres. The cost of insuring the new car will be \($875\) instead of the current \($1,025\), and you estimate that the cost of servicing the car will be about \($225\) instead of \($350\) per year. You drive approximately 22,000 kilometres per year and you expect to keep the car for five years. The current price of gas is \($2.10\) per litre. Is it worth it for you to buy the new car? Are there any considerations other than financial ones?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: