Fuzzy logic?

[darin]

Friend: Finally sold my gas-hog pick up
Me: What did you get?
Friend: New honda civic!
Me: Nice, congrats!
Friend: yeah, will save me a LOT of gas money! And I have a few years-worth of car payments in reserve incase the worst happens.
Me: Is the payment lower than what you were spending on gas?
Friend: No, the payment is $390, and I was paying about $300 in gas.
Me: How is this saving you money?
Friend: Because my gas bill will only be about $125/month instead of $250 with the truck.
Me: But the payment is more than your gas bill alone. Add $125 in fuel + your new payment and...probably insurance is more expensive?
Friend: Yeah, but it will be nice to get 30mpg+.
Me: I'm lost.

Isn't he now paying $515/month (car payment plus fuel) for transportation instead of his previous $250 (truck was paid-off)?

Plus insurance increases if any?

Smart people, please help me out.

[Robert A Whit]

Friend: Finally sold my gas-hog pick up
Me: What did you get?
Friend: New honda civic!
Me: Nice, congrats!
Friend: yeah, will save me a LOT of gas money! And I have a few years-worth of car payments in reserve incase the worst happens.
Me: Is the payment lower than what you were spending on gas?
Friend: No, the payment is $390, and I was paying about $300 in gas.
Me: How is this saving you money?
Friend: Because my gas bill will only be about $125/month instead of $250 with the truck.
Me: But the payment is more than your gas bill alone. Add $125 in fuel + your new payment and...probably insurance is more expensive?
Friend: Yeah, but it will be nice to get 30mpg+.
Me: I'm lost.

Isn't he now paying $515/month (car payment plus fuel) for transportation instead of his previous $250 (truck was paid-off)?

Plus insurance increases if any?

Smart people, please help me out.

I am also lost. I would love to see him put some furniture in the back of that Honda then tell me how happy he is.

Too many people don't do a spread sheet to buy cars so they get the idea they saved money when they did not.

[jimnyc]

Friend: Finally sold my gas-hog pick up
Me: What did you get?
Friend: New honda civic!
Me: Nice, congrats!
Friend: yeah, will save me a LOT of gas money! And I have a few years-worth of car payments in reserve incase the worst happens.
Me: Is the payment lower than what you were spending on gas?
Friend: No, the payment is $390, and I was paying about $300 in gas.
Me: How is this saving you money?
Friend: Because my gas bill will only be about $125/month instead of $250 with the truck.
Me: But the payment is more than your gas bill alone. Add $125 in fuel + your new payment and...probably insurance is more expensive?
Friend: Yeah, but it will be nice to get 30mpg+.
Me: I'm lost.

Isn't he now paying $515/month (car payment plus fuel) for transportation instead of his previous $250 (truck was paid-off)?

Plus insurance increases if any?

Smart people, please help me out.

He will in fact save money on gas, but will lose money now that he has a payment. Some can't connect the 2. It's why people run to stores to buy something that is $5 off and screaming about how much you just "saved" by buying something, that likely wasn't necessary anyway!

[Voted4Reagan]

Be the only one in your state to own a CHEVY VOLT!!

LOL

[aboutime]

Friend: Finally sold my gas-hog pick up
Me: What did you get?
Friend: New honda civic!
Me: Nice, congrats!
Friend: yeah, will save me a LOT of gas money! And I have a few years-worth of car payments in reserve incase the worst happens.
Me: Is the payment lower than what you were spending on gas?
Friend: No, the payment is $390, and I was paying about $300 in gas.
Me: How is this saving you money?
Friend: Because my gas bill will only be about $125/month instead of $250 with the truck.
Me: But the payment is more than your gas bill alone. Add $125 in fuel + your new payment and...probably insurance is more expensive?
Friend: Yeah, but it will be nice to get 30mpg+.
Me: I'm lost.

Isn't he now paying $515/month (car payment plus fuel) for transportation instead of his previous $250 (truck was paid-off)?

Plus insurance increases if any?

Smart people, please help me out.

dmp. This sounds like your first introduction to OBAMA-NOMICS 101. You know?
Obama and the Dems call everything a danger to children, and education...then prove it
by showing the rest of us how EDUCATIONALLY, and ECONOMICALLY Challenged they really are.

[KitchenKitten99]

Friend: Finally sold my gas-hog pick up
Me: What did you get?
Friend: New honda civic!
Me: Nice, congrats!
Friend: yeah, will save me a LOT of gas money! And I have a few years-worth of car payments in reserve incase the worst happens.
Me: Is the payment lower than what you were spending on gas?
Friend: No, the payment is $390, and I was paying about $300 in gas.
Me: How is this saving you money?
Friend: Because my gas bill will only be about $125/month instead of $250 with the truck.
Me: But the payment is more than your gas bill alone. Add $125 in fuel + your new payment and...probably insurance is more expensive?
Friend: Yeah, but it will be nice to get 30mpg+.
Me: I'm lost.

Isn't he now paying $515/month (car payment plus fuel) for transportation instead of his previous $250 (truck was paid-off)?

Plus insurance increases if any?

Smart people, please help me out.

The only one who came out ahead on anything was the salesman who got a commission, but also got him to pay $390 a month for a Honda Civic, WITH a trade-in of a truck, which should be worth a decent chunk of money as a down payment if he didn't have cash on-hand. Unless he has credit not worthy of a decent interest rate or his payment terms are less than 60 months, a 5yr loan on that car, say mid-price range of $22,500 with $5,000 for truck trade in down payment (just a guess at the amount they gave him) at the average bank rate of 5% would be ~$340.