Quote:
Originally Posted by LivingAlmostLarge
Jim, why would you say I came out ahead? The car was $10k at the time. It was a stripped down model in the ad. Base model, no clock, no stereo, nada. It was a car on 4 wheels. Wouldn't the $4k car last at least 5-10 years?
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4k car last 10 years- that would be a great deal.
4k car last 5 years- maybe
Here is how I do the math- for ME-
New 2009 honda pilot for 31995 and a 3 year payment plan of $1100/mo. Expect to get 10-12 years of use from vehicle.
Used pilot- 2007 or 2006- will sell for 25000 and a 3 year payment of $700/mo. Assuming car lasts the same amount of time as a new pilot above, I will get 7-9 years from the used car.
The question I ask myself- is the $7000 cost savings worth 3 years? It would cost me $700/mo at year 7 to replace the used pilot.
To me that means get the new one (which will last longer) for a lower overall cost of ownership.
The longer you finance, the less of a deal new really is (using the logic above).