If you’ve known me for more than 10-minutes, you know that I analyze everything. Each choice I make is highly calculated and is designed to maximize efficiency and long term returns… if you have ever eaten with me at a restaurant, you know that it takes me twice as long to order as it takes you. Very few of my thoughts are hastily formed or poorly developed and I almost always think 10-years down the line
I have been looking at various vehicles over the past few months and feel that I am within 6-8 weeks of making a decision, I am leaning towards a Mini Cooper again, and thought that you might find some of my analysis interesting… I won’t bore you with my pages and pages of spreadsheets, but this excerpt may intrigue you
Some basic assumptions that you should keep in mind are that I think leasing is bad, I think trading in vehicles after 3-5 years is bad and I think spending large amounts of money on a status symbol is bad, unless you have at least $xx,xxx,xxx in the bank and can truly afford an S-class Benz.
The below is calculated by the following formula: Edmunds TCO – Depreciation + Vehicle Cost = 5-year true cost of ownership. Edmunds TCO includes financing, insurance, taxes & fees, fuel, maintenance and repairs. The reason for deducting depreciation is that I will not be selling or trading in the vehicle in the future, so the decrease in fair market value is irrelevant to my bottom line.
Mini Cooper
$37,270-$8,814+$27,000 = $55,456 = $11,091.20/year = $924.27/month
Mini Cooper S – turbo charged engine
$42,981-10,396+30,550 = $63,135 = $12,627/year = $1,052.25/month
Is a little extra horsepower really worth almost $8,000 more across five years? That $8,000 difference will increase to $10,000+ in years 6 through 10.
Some of America’s best selling cars:
Toyota Camry – I4
$42,611-11,461+23,408 = $54,558 = $10,911.60/year = $909.30/month
Toyota Camry – V6
$47,405-$12,790+$26,071 = $60,686 = $12,137.20/year = $1,011.43/month
Honda Accord – I4 model
$43,967-$13,060+$26,714 = $57,621 = $11,524.20/year = $960.35/month
Honda Accord – V6 model
$46,895-$14,148+$28,934 = $61,681 = $12,336.20/year = $1,028.02/month
Toyota Prius
$40,100-12,941+25,673 = $52,832 = $10,556.40/year = $880.53/month
Just for fun:
Mercedes Benz S65 AMG – V12
$254,684-$129,630+214,061 = $339,115 = $67,823/year = $5,651.92/month
Have a great day!
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