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Pete-You are using a nasty little trick here; just pulling numbers out or your, well out of thin air, to make your case. First of all, very few folks have an older car that they are driving 30,000 miles yearly that only gets 20 MPG. (I love the way you pick nice round numbers!- Your car only averaged barely 13,000 miles yearly.)) So they buy a new, or newer car, getting 35 MPG. Boom! $2000 savings! Geez, Pete. Did you forget about the sales tax on this purchase ($1,000-1,400). Higher costs for plates? Insurance? There goes your first year savings! And, of course, new, or newer cars will eventually need some repairs also, won’t they?
Actually, I do agree with your theory, I just don’t like the way you twist the numbers to justify it. The trick is to find that sweet spot- how long can you keep that car where it is paid off, the cost for plates is pretty low, insurance is reasonably low, maintenance costs are reasonable, and as it starts to approach it’s end of life, you start looking for good deals- either you happen to luck out on a really good used car that becomes available (we have done that on our last two purchases) or you bite the bullet and try to negotiate a great deal on a new car. You have to get rid of your car while it still runs and has value, but not like you did and it becomes a clunker; that is just dumb.