Yearly repairs
        $                           $                              Yearly insurance
        $                           $                              Yearly licensing
        $                           $                             
   
  
 Future depreciation
 
Low
Average
High 

   
  Vehicle age (years)
    
           Purchase price
        $                             Down payment
        $                              Interest rate
                          %           Loan term (months)
                                     Your savings interest rate
                          %           Your state & federal tax rates
                          %            Sales tax rate

                          %        

   
  
  Waiting 10 years to buy another car will cost you $6,343 less than buying 3 in the same time period.  
   
  Buy It & Keep It Buy & Sell Often 
  
  Total interest paid
 $1,370 $3,750 
  
  Total depreciation
 $11,899 $20,115 
  
  Taxes at puchase
 $750 $2,250 
  
  Total repairs
 $6,000 $4,000 
  
  Total insurance and licensing
 $8,000 $12,000     
     
  The graph shows how much you save, on a cumulative basis, by holding on to the vehicle you currently own.         
  A large part of your savings over time is due to less depreciation in the vehicle's book value in the later years of ownership.