Eco 561 - Economic Choice & Economic Decision Making

Economic Choice & Economic Decision Making

Eco 561 / Economics

Economic Choice & Economic Decision Making

"Honey, I'm pregnant!" Those three words mean a lot of changes are coming. For my wife and I, it was no exception. In the months leading up to the birth of our daughter, there were a lot of decisions to be made about furniture, doctors, bedrooms, paint colors, and even modes of transportation.

From a financial and need standpoint, vehicle purchase was one of the bigger decisions we had to make. At that point, both of us owned our cars, and while my truck would be fine for transporting a baby, we knew her two-door Volkswagen would not. Also, when we considered what the future held in terms of doctor visits, family trips, grocery shopping, and all around mobility, one thing was clear. We needed a new car. Through analysis of what our needs were, what assets we had, personal considerations and what deals were available, we set out to find in our first “family vehicle.”

The 2016 Chevy Equinox: How We Got There

According to Prieto and Caemmerer (2013) “The independent variables (to car type choice) include vehicle attributes, such as maintenance costs, engine performance, and fuel consumption, as well as consumer or household characteristics, including income and family size (p.739). With the purchase of a vehicle determined as a need and not a want, the variables mentioned were among many that my wife and I considered. As this was going to be the primary vehicle for her, she had a little more consideration as to the make and model. She grew up with Chevy, and her father works for a dealership, so the brand was simple, but we had some immediate expectations.

We were looking for something that would do well in the winter, with good storage, a place for the dog and whatever else we could fit, that she felt comfortable driving. With both of our families a five-hour drive away, we also needed something with good fuel economy. Gas prices in 2015 had been on a decline, and in November, the national average was just over $2.00 per gallon (AAA, 2016). However, as we decided on what we were looking for in a vehicle, we realized that considerations went beyond how much a car could hold and where the dog would sit, and gas prices may have been low at the time, but things can always change. There was much else to think about.

Personal Consideration

“What could we afford” was the biggest question we had. Being able to start with an amount helped to narrow the selection. Our first step was an analysis of the budget and the state of the family. At the time, my wife had started her own hair salon business and was slowly growing