Question

You are trying to decide whether to keep your old job and your old car or take a new job and purchase a new car. You only use your current car to drive between home and work, which is currently a 31-mile journey each month.
You spend $600 on insurance every 3 months. You also find that you are spending $9.00 per mile in gas and maintenance. You do not make any monthly car payments for your old car. You pay rent of $3,557 per month, and your average electric bill is $165 per month.

You have found a new job that pays $7,415 more per year; however, it is a 618-mile round trip journey to and from your house each month. If you take the job you will need to buy a new car.
The new car would be electric and would not have any fuel or oil costs. You would pay $662 per month in new car payments. Based on increased electricity use your costs per mile are $2.00 per mile driven, reflected as additional charges to your typical electric bill. Finally, your monthly insurance payments would increase by 80%. If you take the new job, how much would your net annual costs increase or (decrease) per year?

Answer 1

	Current expenses	Expenses after new job
Insurance	2,400	4,320
Gas & maintenance	6,696	-
Rent	42,684	42,684
Electricity	1,980	1,980
Car payment	-	7,944
Additional electricity	-	14,832
Total cost	53,760	71,760

Therefore, net increase in cost = 18,000 per year. As the new job pays only $7,415 additionally every year, it is a better financial decision to keep the current job and the current car