I saw this news article in the local paper last week, and thought it interesting. So, I thought I would share it with you:
A local businessman in Allentown, the owner of Jim's Appliance Service, had been driving a 1991 Chevrolet Astro van. The van had been paid off a long time ago and averaged only about 11 miles to the gallon.
With gas prices rising, the businessman decided to check out a Scion last December. Looking at a 2005 model, he found out that 5 of his tool boxes would fit nicely in the cargo area. So, he decided to purchase it.
What he had figured out was that his Chevy Astro van got 11 miles to the gallon, therfore, costing him about $545 per month in gas, but no monthly car payments. The Scion gets 28 miles to the gallon, costs $214 in gas per month with a monthly car payment of $327. (The above is based on the cost of $4 per gallon of gas.)
Now, in doing the math, the Astro van's total cost was $545 per month, where the newer Scion cost a total of $541 per month, saving him $4 per month. The gas savings alone are enough to cover the monthly car payments giving him a few dollars left over at the end of the month.
Even though he may be paying about the same amount every month for his business vehicle, he gets a newer model with better gas mileage, eventually saving him money.
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