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#16
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ummmm....isn't that completely obvious?
Kelli
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Previous owner of the Princess Pearlie "Dimples" as of 8/6/03 1992 LS-L Pearl 124k "Yeah, that thingy!" owner of the new 1992 LS-L Pearl "Susie" I am a pessimistic optimistic. I think the worst is going to happen, that way when it does, i don't feel as bad, but if the best happens, i am twice as happy. |
#17
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Quote:
I saw a nice graph once with one line that depicted the value of a car (over time) and another line that depicted the amount owed on the car (with a standard interest rate.) Both lines started at the same point. The first line (value) dropped very rapidly at first but then leveled out slightly and declined slowly but steadily. The second line (loan balance) dropped at a relatively steep but constant rate. After a couple of years, the two lines crossed. During the first years, the loan balance was much higher than the value, but afterwards the value of the car was higher than the loan balance. What this showed is that if you sold the car shortly after it's purchase, it would not fetch as much as you owed. During this time, you'd be taking a huge financial hit. After several years, the car would be paid for and effectively cost you nothing to own. If you sold the car during this period, it would fetch more than you owed (obviously,) but if you sold it and then bought another new car, you'd be taking that huge financial hit once again. What this means is that people who buy new cars and sell them as soon as they're paid off - well, they pay a huge price for that. People who buy used cars shortly after they're paid off get a pretty good deal because the new buyer bears that depreciation expense instead of the used buyer. |
#18
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Quote:
dcb |
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