Jul 23, 2006

One for freakonomics!

REcently a friend of mine got married and was ebing pushed by his wife to buy a car. This is a calculation he tried to explain to her:

Monthly expense on car:
EMI - 8000
Insurance - 1000
Maint - 500
Driver (optional) -5000

Assuming u do 1000 km a month (thats a lot): this means Rs 14/km
Add Rs 4/km for fuel
So Rs 18/km

Cost of hiring the same car as taxi anywhere, anytime its needed : in the range of Rs 12-18/km

Why the hell should he buy a car??

1 comment:

  1. cars are lovely things.
    costly, but lovely.