OK, does anyone else think that $20K savings figure at the beginning is a bit low? If you buy a $25K car every five years, that'* $75k. That'* a difference of $50K versus having one car for 15 years. So they are saying if you keep a car for 15 years you are going to put an extra $30K into maintainence versus the other route? Come on!

I just wish I could bang this sense into my parents. They (mainly my dad) got into the mode of replacing their car and truck every 3 years or so, yet he complains about probably having to work until he'* 70. Duh! And it doesn't make sense because they have always been so frugal in everything else.

The $30k you are saying is going into maintenance is actually the fact that the guy who buys new every 5 years has twice sold or traded in about $10k-$12k worth of used vehicle and ends up after the third 5-year period with a vehicle worth about $7k-$8k more than the guy who kept his for 15 years. So I think an estimated $20k savings (not counting interest) for the 15-year keeper is fair.

But, I figure that a guy who buys a 3-4 year old used car every 5 years will also save about $20k-$25k over 15 years over the guy who buys new every 5 years. And he never has to drive a 15-year-old car
(Make that a 3-4 year old car every 7 to 8 years, and that'* what I try to do.)

I'll tell you what though, for only $1,333 a year more, driving a new car every 5 years versus keeping the same one for 15 years is alot more affordable than I would have expected before comparing the numbers :?

Crap my BMW tope the worst list

Don't forget that those numbers are based on a Honda Civic, guys, not anything more expensive than that. That means those numbers are really minimum savings. Any new car that is more expensive to begin with and has a lower retained value percentage, used, than the Civic will show a much larger cost savings over those same 15 years.

Yeah, I forgot about trade in value, but I still think the math is off.

Here'* my simple math (not including maintanence/service, which could still be required buying a new car every five years):

#1-Buying a $30K car every five years will cost you $66K over fifteen years (assuming a trade in value of $12K) for three new cars.

#2-Buy a $30K car and keep it fifteen years. Then at years six and eleven, put that $18K that you didn't spend on a new car in a simple investment like a CD earning a mere 5%. You end up with roughly $50K saved up after fifteen years. Even with 3% inflation, it'* still $33K. Subtract the initial $30K for the car, and you are ahead by $3K. As apposed to the first scenario you've spent $66K. That'* a $69K savings in my book.

But my choice is scenario #3
#3-Buy a two year old $18K car, and do the same as scenario #2, and end up with over $45K after thirteen years (assuming the new car would last fifteen), which with inflation would be about $31K. Subtract your initial $18K, and you are $13K in the black.

I prefer to buy a $2000.00 10 year old car and not put any money into unless I have to.... Cheap registration, cheaper insurance, what'* to argue with on that?

I'm also a fan of buying a 1 or 2 y/o low-mileage car and keeping 10+ years. I've done that three times and it has worked great. There'* an additional $7K average savings off a new car that way.

Plus, you get the additional benefit of not having that new car smell. Did anyone see the article that indicated that that new car smell is bad for you? That smell is the gassing of manufacturing and materials chemicals. Many of which have been shown to contribute to diseases or cancerous growth.

In my honest opinion, I think CR is crap and accountants are a PITA (no offense to those who are one )

I simply think going this route is the best way. Buy an used car that you like and keep it until it dies completely. Afterall, I'm still driving my 8 year old car with a good amount of miles on it and the only thing I put in it (excluding mods) are gas and oil. Why get rid of a car that you love, is trouble-free and is paid off?

Well, it certainly helps the maintenance equation if you do the maintenance yourself.