Economics of Buying a Car

When buying a car, there are a few factors to consider.

As a salesman tried to tell me: "Buying a car is like choosing a girlfriend"
I tend to disagree with his statement, as Economic Efficiency is what improves the human race.

To be 'Economic Efficient' means that:
- No one can be made better off without making someone else worse off.
- More output cannot be obtained without increasing the amount of inputs.
- Production proceeds at the lowest possible per-unit cost

Translating that into the context of a car:
- Lowest possible impact on the environment and to other people
- Better fuel efficiency vs power output vs size & space
- Low capital and maintenance cost

To measure these, variables include:
- Impact to environment: CO2 Emission, Greenhouse Gas Emission
- Impact to people: Active and Passive Safety, Well-being consideration for onboard passengers
- Fuel Efficiency: Liters per 100 Kilometer
- Power Output: Power to Weight ratio, Power to Fuel Consumption Ratio, External Size vs Internal Capacity ratio
- Low costs: Comparative advantage over competitor's pricing for purchase and running

Download your Analysis Spreadsheet HERE