Aside from the horribly optimistic interest rate projections in the "[Drive Free, Retire Rich][1]" video, is this a plausible way to deal with auto expenses over one's lifetime?


  [1]: http://www.daveramsey.com/article/drive-free/

The basic plan is:

 * get off the treadmill of buying a new car on credit every six years
 * don't trade your old car for a new car; instead:
 * save money for a year until you can buy a slightly better used car
 * do the same next year and you will have a reasonable used car and no debt
 * save all the money you would have spent on car payments compound in a mutual fund
 * withdraw from this fund every six years and you'll have a new car "for free"
 * after 30 years the fund will reach a million dollars
 

With the assumptions:

 * 12% after-tax average return on mutual fund investment
 * saving the US average monthly car payment of $425