Hypothetical math - Saab 9-5 Bulletin Board - Saabnet.com
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It is almost always cheaper to keep a car running than buy a newer one.
Hypothetical math of sunk cost analysis with liquidation - run the numbers for five years and compare total costs from this point on:
$100 per month is $6000 for maintenance minus liquidation return of say $1000 is $5000 out-of-pocket for 01.
$50 per month maintenance plus purchase price (say $14K) is $17k minus liquidataion return (say $5000) is $9000 for the ‘05.
Comparison to a leased or purchase Honda is also insightful, but the keep-it-going scenario almost always wins. That is why I ran my beloved 9000CSE to 195K miles before emotions and the numbers ran together and I reluctantly dumped it for an 03 Linear wagon.
B Millar’s numbers look worse than yours, so you may be at a more reliable (repeatable?) point on the curve. Therefore, the fear factor may overcome any analysis.
After all of the advice and analysis - Go with the gut and let us know how it turns out.
Posts in this Thread:
- The board's opinion - go newer or stick it out?, AtlGator, Wed, 23 Jul 2008 03:40:09
- Fixed the ABS module, AtlGator, Fri, 25 Jul 2008 15:17:17
- Nice to vote with someone else's money, KevinM, Wed, 23 Jul 2008 07:51:46
- Hypothetical math, NJ-PA Don , Wed, 23 Jul 2008 07:48:51 <-- Viewing This Message
- You're repair history doesn't look all that bad.., Allan, Wed, 23 Jul 2008 06:55:47
- You're repair history doesn't look all that bad.., Allan, Wed, 23 Jul 2008 06:55:42
- Re: The board's opinion - go newer or stick it out?, B Millar , Wed, 23 Jul 2008 06:22:41
- Re: The board's opinion - go newer or stick it out?, 1Scray , Wed, 23 Jul 2008 06:17:49
- Re: The board's opinion - go newer or stick it out?, stevet, Wed, 23 Jul 2008 06:12:22
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