The First Three Years Advantage

A05

Financed used car

GSX:HH-002:A05 · Model assumption · Version 1.0

Connected conditional claims

C01GSX:HH-002:C01In the central middle-salary Johannesburg scenario, living in the family home and delaying a car purchase for three years creates R602,000 more modelled net capital at age 25, and R3.32 million more modelled wealth at age 60, than moving out and financing a car immediately. The age-60 figure holds when the gap is preserved on the manuscript's common post-25 path.high sensitivity

C02GSX:HH-002:C02In the central case, staying at home for three years while buying the car immediately accounts for R486,000 of extra modelled capital at age 25, while moving out immediately and delaying the car accounts for R128,000. The housing decision is the larger of the two.high sensitivity

C04GSX:HH-002:C04Under the central hybrid transport mix, the financed used car has a lower private monthly money cost only above roughly 2,405 kilometres a month.high sensitivity