By Trent Hamm
The last two weeks have focused on appliances. Now, we’re going to shift directions and take a deeper look at automobiles.
Let’s take a look at two hypothetical cars.
You’re looking at a class of cars that, according to the data you’ve researched, get to 150,000 miles pretty reliably before significant problems set in. You drive 25,000 miles per year, so you’re hoping to get six years out of the car. Gas costs $3.25 a gallon. We’re going to assume that insurance among the models is equal and that maintenance costs are equal, too.
Let’s call one Model A. Model A costs $25,000. It gets 35 miles to the gallon. Based on the data you’ve seen, Model A is about 10% more reliable than the average car in the class... More...
