[DML] Rule of 20
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[DML] Rule of 20
- From: "tuxr" <tuxdarby@xxxxxxx>
- Date: Wed, 25 Jan 2006 01:06:17 -0000
Seems a hot topic these days, the real cost of the car. Some still
use the Rule of 20: add what you pay, plus repairs and refurbishment,
it will come to $20,000. So if you pay $12,000, it will cost $8,000
on top of that. If you pay $15,000, it will cost $5,000 on top of
that. Based on everyone I know, have talked to, my personal
experience with two cars, and reading this and other online
discussions, I'd like to throw on the table that the rule of 20 no
longer applies. Actually, any "rule" should really be two rules, one
for those who have the skills and capability to do the work
themselves, and one for those without those skills and have to get it
worked on at a shop. Two entirely different cost structures. There
can't be only "one" rule. My view is it should be the "Rule of
22/27". While your heart may want to stick to the Rule of 20, hard
economics must be recognized. And it seems the downside (unexpected
higher costs) really outweigh the upside (coming in under budget).
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