When deciding whether to buy a new car or repair an old car, it is not wise to dwell on how much has already been spent on the old car, but instead to consider how much is likely to be spent on future repairs to the old car.

Question

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This concept is known as the "sunk cost fallacy," which is the idea that past investments (time, money, resources) should not influence future decisions. Instead, decisions should be based on future costs and benefits.

When Deciding Whether to Buy a New Car or Repair