On Jul 5, 5:15 pm, Bhoot Nath <d...@y...com> wrote:
[snip]
> We can afford a new car, without loan, and it won't impact our other
> savings, yada, yada, but I feel crummey having to "throw-away" a
> perfectly good car...
[snip]
> Thanks.
> Bhoot Nath

Estimate the cost per year (over its useful life) of a replacement
car, and compare that to the cost per year of keeping your present car
(over its useful life). If you can realize the difference (over the
estimated useful life of your present car) when you sell, then the two
are equal. (I think this is right!:-)

Assuming a new car will be more expensive, and just pulling an example
out of the air:
New - $20,000 + $10,000 repairs over 15 years = $30,000 / 15 = $2,000
per year;
Old - $12,000 repairs over 8 years = $12,000 / 8 = $1,500 per year.

If you can sell for $4,000, then the alternatives are equal (the
$4,000 compensates you for the $500 higher cost per year of the new
car, over the 8 years, after which you would have to buy a new car
anyway). You can adjust for interest on the foregone $25,000, possible
higher insurance, etc.. You also want to include the availability of
replacement parts on older model cars, and how reliable your mechanic
is to give you that information.

The rest is personal preference.

P.S. Did you use car wax on your present car?

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