On Sun, 02 Feb 2014 16:33:37 -0500, "Elmo P. Shagnasty"
Oh, I've marched through this at least once, I think twice, on this
newsgroup over the last few years.
It works best if I drive a standard 12k miles/year plus or minus ten
percent, I've had pretty good luck getting allowances for unused miles
and waivers on minor damage.
What does it cost? Well, I typically pay like $2,400 cash to get the
new car off the lot, so that's $67/month. I went all bonkers and got
the EXL4 this time around for a payment with taxes of $360/month. And
maybe it costs another $50/month to insure a more expensive vehicle,
so that's $477/month. Call it $500/month including higher
But I'm never out of pocket for the entire purchase price AT ALL!
And what appears as cash flow here is about half depreciation, and the
rest interest on the principle - very low interest, these days.
$500/month to be eternally driving a new car, is pretty cheap. Let's
say $100/month is for status, and another $100/month is real value for
operating under factory warranty. So, for about $6/day, I drive a new
car and never worry about a thing. And of course chicks dig it.
If I wanted to buy and hold on a budget of $300/month for about ten
years, I'd have a budget of $36k. Let's say half of that would be to
buy a "bargain" used car for $18k, and budget $150/month maintenance
over the long run, including tires and hoses and (timing belt?). I
think this is about ball park.
This is all made possible because there is a humongous market for
three year old clean used Hondas. I'm just doing my duty producing
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