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Supply-side thinking
Posted by viczeba (more from viczeba) on Sun, 18 Sep 2005 09:49:27
In Reply to: $6k and you passed?....., Mike Lynch
[Profile/Gallery]
, Sat, 17 Sep 2005 17:11:16
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In the car business you are forced to think in terms of rolling sales. As an owner (demand-side), I know that I can keep this car for another 4 years and still get $6000 for it, so there's no financial motivation to get me out of this car and into a new one. From a capital costing perspective, most people are illiterate when it comes to the TCO of a car, focused soley on monthly expeditures and image.
Truly, this Saab will be the last new car I will ever buy, knowing that there is a sweet spot where depreciation slows dramatically before major expenses are required. Experience puts that between 3 and 6 years, depending on the brand. Great thing about Saabs and other European brands is they aren't really disposable - a clean, well-cared car will bottom out and stay there for a long time. My SiS was bought and sold for virtually the same price over an 11 year period, my maintenance costs were about $1500 per year. A slam dunk car purchase, and a great car too.
posted by 65.11.255...
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