Let's say I'm considering buying a new (used) car for $15k, and could pay in cash. My current car is in working condition, so I could wait a few years before buying a replacement.
My question is: how much money am I saving by being patient and waiting two years to buy a car? Five years? Or to phrase the question differently, what premium am I paying for my impatience, if I bought a car today?
Some assumptions - holding on to my used car will cost me maybe $500/yr in additional maintenance/repairs - I could invest the 15k while I'm waiting to buy a car, let's say at ~6%
- Let's also assume that the resale value of my current car is so low that it's not a factor (it's old, and in pretty rough shape)