[DML] Rule of 20
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[DML] Rule of 20



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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