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ask Mike Lynch
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Posted by AndyR [Email] (more from AndyR) on Tue, 22 Mar 2005 08:08:00 Share Post by Email
In Reply to: Should I sell my '03 Aero, C.R., Tue, 22 Mar 2005 07:16:45
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It depends on how long you are planning on keeping your 9-5 and how long you would keep this hypothetical 330. If you sell now and then keep the BMW for only 2 years, you'll lose a lot of money on both. If you plan on keeping whichever car for a 10 years, then you will be fine either way.

It's somewhere in the middle where the financial trade-off will occur (this is assuming that whatever BMW you pruchase will retain value better than a 2003 9-5). Check out the five-year cost of ownership on Edmunds.com for each car. I think their figures are pretty useful.

I know this is hindsight, but:
1. New cars are a very poor investment "vehicles" for retaining value. A 10 year old car would obviously hold its value well, but soemthing 2-3 years old will probably offer the best maintenance/depreciation tradeoff.
2. Leasing can help you avoid depreciation losses, but if you put tons of miles on your car, this might not be an option.

posted by 198.50.6...

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