Decide whether the statement makes sense. Explain your reasoning.Jose's car gets about 20 miles to the gallon. He is thinking of buying a new fuel-efficient car which gets miles to the gallon and which costs $25,000. He reasons in this way: " I drive about 300 miles per week. Gas costs about $3.50 per gallon. That means I'll save $1365 per year on gas. That means that if gas remains at $3.50 per gallon it will be about 18 years before the car has paid for itself. I don't think I can justify buying the new car. "

Question

What will be an ideal response?

Answer 1

No, the statement does not make sense. Jose is not taking into consideration the savings on repairs that he would have to make on his old car. He probably won't have to spend money on repairs for the new car for quite some time. He is also not taking into consideration the trade-in value of his old car.