Ah yes ... spoken in true, Dave Ramsey "sell the car" style. To be clear, that's not something I'm going to do. But it got me to thinking: Just how big a hit has my net worth taken thanks to my purchase of a new Honda back in late 2005?
Let's start with what price a 2006 Accord SE with 13k miles might fetch from a private buyer in this area. NADA and Kelley Blue Book show me, respectively:
Okay. So I'll "guesstimate" that the car's now worth $18,900 in the private market. Now to do some math, courtesy of Excel 2007:
There you go: In the 19 months that we've owned the Accord, it has nicked our net worth by over $4,200. It's worth noting that my interest rate on our auto loan is fixed at a measly 3.95 percent, so while the loan interest is a factor here, it isn't the primary culprit. Given the $221 "cost per month" shown above, interest accounts for less than twenty percent of that amount per month.
What I wish I had done was write down somewhere what I might've paid for, say, a 2004 Honda Accord LX with 30k miles back then. Then I could play with the numbers on that, too, and see how much less it would've cost me over these 19 months. That would make for an interesting comparison.