Cost to Drive a Mustang

Max C. Webster III · 2003-11-02T19:49:52+00:00

(Subtitle - The Most Boring On-Topic Post *Ever*!)I purchased my 2001 GT Coupe for $24,861.38 on October 31, 2001. As of Friday,it was two years old. I have kept meticulous records on every penny I havespent on this vehicle. This is my report of those costs as of October 31,2003, to RAMFM.The car (El Imán de Chicas):2001 Mustang GT coupe, green/tan, leather, automatic transmission, Mach 460stereo with in-dash six CD changer. Other than replacing the original Goodyeartires with Bridgestone Potenzas at 45,000 miles, no modifications have beenmade to this car. The car currently has 55,629 miles; it had 259 when I boughtit. The car is in excellent condition (no mechanical problems, no dings orscratches in the exterior finish, no rips, tears or worn spots in theinterior). The car was involved in one accident, in which the front and rearbumpers and the left-rear quarter panel were damaged. All damaged parts werereplaced.The driver:Married male, 39, with a clean driving record, employed as a systems analyst,residing in Hoover, Alabama, a suburb of Birmingham.The costs:The costs calculated using actual cash payments are in the left column. Thecosts using depreciation (from instead of loan payments is theright column. The report is designed to be read using a monospaced font, so ifyou are having trouble reading it in your newsreader, you can see it as a plaintext file here: "note" is $414.35 per month. Insurance coverage is provided by USAA, with$100K/300K/$100K limits. The payments in services are for tires and scheduledmaintenance only -- there are no out-of-pocket repairs included. The paymentsin "Other Costs" are for car washes and supplies.Cash Payment Basis Depreciation BasisCosts Amount Costs Amount----------------------------------- -----------------------------------Payments $9,530.05 Depreciation $10,825.38Fuel ...

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Scott Williams 22 years ago

"SVTKate" wrote in

But if I have a same as cash loan and as long as it's paid off by the last day, I get to keep that money in my pocket and make a payment each month. Instead of one large chunk, it will be many multiple small chunks. What I don't spend up front, I can invest in a short term CD or something and then keep the interest. So I'm actually earning money against what I would have paid and still don't pay any interest when the car is paid off. I actually make money. in an indirect way, lowering the cost of the car. See what I mean?

Kinda like what the bank does with the money in your checking account. They invest your money in their name and they reap the profit and you just get your same money back. Except in this case, I'm the bank. Investing for myself.

Scott W '66 HCS

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94_Teal 22 years ago

Thanks! So that's ~$1360/year (or $113/mo.) more for a car with more than twice the engine, and 100 times the cool factor. Oh, and bonus, the Mustang puts the power to the correct end of the car!

-JF

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John Shepardson 22 years ago

You people are clueless, 5.25 per cent interest is an excellent car loan rate. Don't you understand that the rate of inflation is 3% per year during that 4 year period.

Sheesh,

John

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Max C. Webster III 22 years ago

Yeah, I mean we're all gearheads to one extent or another. If all I was concerned about was money, I'd have bought a Hyundai XG300.

- Max - ======= The best part about hating people is that I never run out of great ideas -- Dogbert

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Max C. Webster III 22 years ago

Then clue me in. Please show me how the rate of inflation makes a 4 year,

5.25% loan better than a 5 year same-as-cash loan?

Please show me how a 60 month same-as-cash loan is a mistake compared to a 48 month 5.25% note.

- Max - ======= The first rule of finance: A dollar today is worth more than a dollar tomorrow.

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SVTKate 22 years ago

And then, something stupid happens, and you have to spend a pile of money on some emergency, and you are screwed because you had to use your car money for something else.

You do what you think is right. Personally, I wouldn't do it. I know how s*it happens. Whichever you do, you'll get a great car and have a blast, and that's what counts!

Kate

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SVTKate 22 years ago

... and how about the rate of depreciation on a car?

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Scott Williams 22 years ago

Didn't think of that.

Scott W. '66 HCS

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Admin 22 years ago

I learned the hard way about how much you can loose on a modded GT when you trade it in.

Only 2 years old also, with a blower, wont do that again.

-- Admin

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Mike Schultz 22 years ago

I'm with Max. If you know the car is costing you $10k per year, and you're comfortable with that, great. If you would rather go to Tahiti with that money, then you should be driving the beater. Either is a fine decision. But having the car and not knowing what it is costing you is dumb.

I know that my 03 Cobra costs me a bundle. And I'll probably sell it too soon, and take a big per-mile hit on depreciation. But I love it and am comfortable with the cost. I would not be comfortable with the same car at twice the price, even if the bank would loan me the money (I'm sure the vultures would).

Mike

money-losing

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Cost to Drive a Mustang

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