I did not include the loan payment in my calculations because it is meaningless to the analysis. This (and prior) discussions were never about cash flow, or payment affordability but about the wisest use of my dollars. If I had paid cash up front for a new car, principal payment (or the price) would never be broached in a cost to operate comparison. Had I followed suggestions in the earlier thread to fix the old car and not buy a new vehicle until I had enough cash in the bank (which would be now) my prior analysis indicates that decision would probably have cost an additional $2400.I see now. Since NOT buying a new car was never an option, then I more or less agree with your original analysis. And including depreciation is meaningless.But I would never look at the decision that way. You either drive an old car and spend a little money, or drive a new car and spend a lot of money. Once you pull the trigger to replace the old car, you still have to pay for it, regardless of what the cash (or cash flow) was doing prior to that point.I'm going to buy a new car sometime in the next year, since I told my wife we would once she started working again. Analysis: 1) 19-year old civic is showing its age, and 2) we can afford it. Interestingly, she's the one who wants to wait now (home ownership has changed her view on how much of an e-fund is enough.)v/rTom
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