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

With these economic times, you're well advised to keep your money in the bank and your 240 on the road. This won't help GM, Chrysler, or for that matter Volvo, out of their problems...but, too bad.

Many people ignore the "opportunity cost of capital"...ie: what the money could be used for if you didn't spend it on the purchase at hand. If you had the $25k cash for, say, a new Camry, that would earn you about 1.6% after tax in a CD or GIC. So, $400/yr, plus the savings on the insurance coverage you'd want for that new car. The Camry might save you about $200 on fuel costs in a 10,000-mile year compared to the 240.

Roughly, you'll net maybe $500 to spend on annual 240 repairs on a break-even cash flow basis. And you've still got your $25k available if a can't-miss opportunity like a house upgrade comes along. That adds "value" to your older car.

Maybe we're a little over zealous about the 'mystique' of these cars, but there's satisfaction as well as tangible economics in keeping a solid old beast running at low cost (and beating the system).
--
Bob (son's 81-244GL B21F-M46, dtr's 94-940 B230FD, my 83-244DL B23F-M46, 89-745(LT1 V8), 98-S90, 77MGB and four old motorcycles)




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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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