Posted by Nancy Howell on April 04, 2008 at 10:34:29 from (144.162.48.81):
There have been a number of posts along the lines that thought it would be cheaper to buy a car and park the truck than driving the truck all the time. Being in the accounting field, I crunched some numbers. One post said you could get a good used for $2,000 (I have to question the quality of vehicle you could get for that) but for the sake of this evaluation I used that figure. I calculated the cost of car spread over 4 yrs, one set of tires $300 ($75 each also spread over 4 yrs), and 3 oil changes per year at $20 each. While the average miles put on a vehicle is around 10,000/yr. I used 8000 miles per year, which breaks down to $72.22/mo for gas at 30mpg. Then I broke everything down to a cost per month. I also assumed (probably incorrectly) no repair costs. Here's the cost: purchase price - $41.67/mo + ins. $66.67/mo + tires $6.25/mo + oil changes $5.00/mo + $5.00/mo for license tags (no taxes) + 72.22/mo for gas. Total cost of the above per month is $196.81. Again, I assumed no repair cost and gas at today's prices. Since we don't pay property taxes on cars in Texas, I didn't include a figure for that. I'll let everyone make up their own mind whether or not its more economical to buy a small car and park the truck.
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