Use computational and algebraic tools to quantify the total costs (gas, maintenance/repairs, purchase price) for each scenario over the three years. For the old and new car

Question

Keep the Old Car or Buy a Used Car

Manny is an online student who currently owns an older car that is fully paid for. He drives, on average, 170 miles per week to commute to work. With gas prices currently at $$4.59 per gallon, he is considering buying a more fuel-efficient car, and wants to know if it would be a good financial decision.

 

The old car Manny owns currently gets 19 miles per gallon for average fuel efficiency. It has been a great vehicle, but with its age, it needs repairs and maintenance that average $$1,480 per year (as long as nothing serious goes wrong).

 

The newer, more fuel-efficient car that he is looking at to purchase will cost a total of $$8,500 over a three-year loan process. This car gets 34 miles per gallon and would only require an average of $$40 per month for general maintenance. To help make a decision, Manny wants to calculate the total cost for each scenario over three years. He decides to use the quantitative reasoning process to do this.

Answer 1

old car: 19mpg $4.59 per gallon, 170 miles per week 3 years, 52 weeks per year, total weeks 156

total miles = 170x156 = 26,520 requiring 26520/19 gallons costing 4.59x26520/19 = $6,406/67 for 3 years gasoline cost. repair&maintenance = 1480 per year, 3 years total = 3x1480= $4,440. Total repair&maintenance&gas = $10,846.67

new car: $8500 over 3 years, plus 34mpg 4.59x26520/34 = $3580.20 gas cost. $40 monthly for maintenance for 36 months = 40x36 = $1440. Total new car cost = $5020.20

old car total is over twice the new car costs, over 3 years

although, this doesn't account for comparing values of the 2 cars in 3 years, given depreciation and inflation on the car, gas prices and maintenance & repair costs