Can you drive a new car cheaper than this?
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I feel the need...
Joined: May 2004
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From: Motown
Can you drive a new car cheaper than this?
I bought teh wifey's '05 CRV-LX AWD Jan 2005 for $20,250. All in after TTP $21,680.
Just sold it for $17,500 with just under 24000 miles.
So basically, she drove it for $140 bucks a month.
Gotta love teh Honda residual!
Well the story doesn't end there... Thought I was a stud for a second, but then realized forgot to calculate opportunity cost. By using a risk free rate of return of 5% (safe assumption). I could have earned roughly $3,300 in compounded interest over that time period by not locking up my cash.
So now my actual monthly "cost" was more like $250 per month.
Okay, so a zero down lease and $250 per month still ain't bad, but not as good as I first thought. Perhaps the leasing equation does make sense as long as you don't drive a lot.
Just sold it for $17,500 with just under 24000 miles.
So basically, she drove it for $140 bucks a month.
Gotta love teh Honda residual!
Well the story doesn't end there... Thought I was a stud for a second, but then realized forgot to calculate opportunity cost. By using a risk free rate of return of 5% (safe assumption). I could have earned roughly $3,300 in compounded interest over that time period by not locking up my cash.
So now my actual monthly "cost" was more like $250 per month.
Okay, so a zero down lease and $250 per month still ain't bad, but not as good as I first thought. Perhaps the leasing equation does make sense as long as you don't drive a lot.
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Joined: Oct 2006
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From: Houston, TX
new: 
, or at least I doubt it
slightly used: Just sold the wife's car - put 11K miles on it in 13 months - and made $500 on it, excluding the $375 in taxes we paid for it on top of the sales price. Net profit = $125.
, or at least I doubt itslightly used: Just sold the wife's car - put 11K miles on it in 13 months - and made $500 on it, excluding the $375 in taxes we paid for it on top of the sales price. Net profit = $125.
Three Wheelin'
Joined: Oct 2000
Posts: 1,670
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From: Northern VA
Originally Posted by revitupwriteitoff
slightly used: Just sold the wife's car - put 11K miles on it in 13 months - and made $500 on it, excluding the $375 in taxes we paid for it on top of the sales price. Net profit = $125.
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