Friday, May 26, 2006
Do day Numbers
Just bought a Civic. Paid cash. Stupid? Maybe. Let's do da math:
Price $20,000 In a 1 yr CD that would earn 5%: $85/month.
Old car; 17mpg. Civic 38 mpg.
$3.25/gallon 1100 miles per month. Old, $210. New, $94.
There's more to owning a car including depreciation but 4 year old Honda Civics are selling used at 90%+ of retail new. I fully expect the price of a Civic to soar and used prices follow new prices up and down.
Update July 11th 2006
6 weeks and 3600 miles. We've been driving more than we thought and we've tried to put the miles on the Civic as well. So, repeating the calcualtion:
Price $20,000 In a 1 yr CD that would earn 5.4%: $92/month.
Old car; 17mpg. Civic 37 mpg.
$3.25/gallon 2400 miles per month. Old, $459. New, $210.
Looks like a worthwhile deal.