Monday, April 21, 2008

The hidden expenses of cars

I really enjoyed this article from the Wall Street Journal. An excerpt:

If you save $10,000 by buying a Toyota Camry instead of a BMW and invest that $10,000 in stocks with an average annual return of 10%, at the end of 10 years (about when your Toyota is coming up on that 150,000-mile mark) you'll have $25,937.

At that point, save another $10,000 by buying a less expensive car, invest it, and the combined savings on those two cars will, 10 years from that second purchase, be worth more than $93,000...Can driving a car that is $10,000 more expensive than another really be worth nearly $100,000 to you?

Great stuff. Read the rest here.

1 comment:

Literacy-chic said...

Works great if you pay cash! Toyotas are even out of my league these days... And you know that no one's really buying the BMW for the "value."