Auto Depreciation Musings

Well, it turns out what I *should* have done was buy a 17 year old car. Says who? Says University of Michigan, that's who.

I was googling mathematical models of auto depreciation and ran across this blog post which cites a 2004 study entitled "Automotive Life Cycle Economics and Replacement Intervals". Among their conclusions :

Overall, this analysis provides substantial evidence for the importance of fixed costs, and depreciation specifically, in total life cycle vehicle economics. Dynamic replacement modeling for both the Ford Escort and generic sedan suggested long replacement intervals (of 15 years or more) were economically ideal despite varying repair, and finance costs. In the generic vehicle study, additional variations in finance methods, gasoline price, powertrain availability, and external societal costs made little change to the ideal replacement intervals.

So I really should have kept my Tercel for at least 1 more year...