RWD - the values of the 240's are not keeping pace with the cost of their repairs and parts

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the values of the 240's are not keeping pace with the cost of their repairs and parts 200

An attempt at clinical treatment of a non clinical subject.

Value...which type is being discussed?

1. Monitary worth or/andmaterial worth, which happen to be subjective and will vary upon who is determining a value figure. A 1990 is worth $1500. A 1970 is worth $6800 etc. Much less if you are an insurance company getting ready to pay off. Latter for clarification only. May not actually occur. Subject to terms and contract etc... Basically your value estimate and their value eatimate are not the same.

2. Equivalent worth or return in money, material, services, etc... which can be more objective to determine.

In the above, return in services for comparison between differnt vehicles could be defined as a Cost per mile which includes everything that it takes to keep the auto moving and on the road.

Initial cost, depreciation, insurance, registration, gas, oil, tires, repairs ad infinitum divided by miles or estimated miles driven.

One could argue that spend an amount $1000 on a vehicle worth $1000 and car is still worth $1000 and if wrecked you are out that $1000 that could be used toward another more valuable vehicle. Sounds good???

Take that $1000, apply that toward a vehcile worth $4000, and you have a vehcile worth $4000 that if totaled the next day you would be out $4000. A loss of $3000 more than the initial $1000.

Same arguement, both invalid conclusions. Both appear to be objective conclusions of worth but is based upon subjective bias (the worth of the car). Invalid conclusion.

If it will take $1000 for a repair, and that repair will allow 50,000 miles, then that repair would cost 2 cents per mile from that point forward. Anything beyound the original estimate just decreases cost per mile of ownership.

Spend $4000 on a car for 50,000 miles of use and cost is 8 cents.

There is subjectivity involved within any value judgement. The more objective information one uses to determine actual value, the sounder the judgement.

IMOP.

My 85 245 currently is about 12 cents and the 90 245 is about 13 cents. Major difference is in the insurance coverage. A while ago I looked at a couple of other vehicles When the 85 was giving me fits. Est cost was 38 cents per mile for the first year for the 2003. Near 58 cents per mile for the 2008.

With those figures, the 85 began looking pretty valuable to me and with a bit more detrmination, found the problem which cost $28 to fix plus about six hours of my labor.

I'm still saving money.

Duane




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New the values of the 240's are not keeping pace with the cost of their repairs and parts [200]
posted by  volvoboz  on Sun Apr 5 06:52 CST 2009 >


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