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From: 2141smh@aluxe.UUCP (henning)
Newsgroups: net.auto
Subject: Re: Re: when to trade ?
Message-ID: <418@aluxe.UUCP>
Date: Sat, 29-Sep-84 16:42:38 EDT
Article-I.D.: aluxe.418
Posted: Sat Sep 29 16:42:38 1984
Date-Received: Tue, 2-Oct-84 03:45:04 EDT
References: <783@aecom.UUCP> <350@edison.UUCP>
Organization: AT&T Bell Laboratories, Allentown, PA
Lines: 18

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From the keys of Steve Henning, AT&T Bell Labs, Reading, PA aluxe!2141smh

> 	The time to trade (in my book) is when the costs of repairs
> are equal to or more than the cost of new, used, car payments.

Actually the break-even point is when the:
1) loss of earnings (loss of interest() on the cost of the "new" car plus,
2) cost of borrowing (cost of interest) for the "new" car plus,
3) the loss due to depreciation on the "new" car plus,
4) the increased cost of insurance on the "new" car,
is equal to:
1) the cost of maintenance beyond routine levels on the "old" car plus,
2) the loss of earnings on the value of the "old" car plus,
3) the loss due to depreciation on the "old" car plus,
4) the premium you are willing to pay to drive a "new" car.

Supposedly the "new" car offers a promise of increased reliability.