Simulates buying a 10 year old truck with 120k miles on it for $7500. It is going to need tires and some engine work in the near future, plus keeping it on the road in tip top shape is going to cost more than a new truck. Includes depreciation, insurance, gas, routine maintenance, major maintenance (tires, brakes, engine work, etc). Assumptions: * truck is driven 10k miles/year * gets 18 mpg * gas is $3/gallon * annual registration is $50 / year (that may be way too low for some states) * insurance is $75/month (you're a good driver without any speeding tickets right?) * oil changes / routine maintenance are on average $150 per year over the 10 years (this truck has some miles on it, will need random stuff fixed). * big ticket maintenance items like tires, brakes, engine service, come to $3,400 over the 10 year period. Since it was never under warranty, there is some hidden risk of being hit with a really high maintenance bill. If the engine and transmission both fail, the maintenance budget would probably be much higher. Gas represents ~42% of the cost of ownership ($16k of the total $38k out of pocket). In this simulation the price of gas is fixed, so there is a hidden risk if gas prices go up. Insurance is ~24% Expenses: Purchase Truck 7500 Gas 140 Insurance 75 Registration 50 Tires 1000 Routine Maintenance 150 Major service 1200 Major service 2 1200 Assets: Truck 7500

Jan. 16, 2018, 7:35 a.m.

Jan. 16, 2018, 7:23 a.m.