Tag: Cars
Weighing The Decision To Trade In Your Used Car
by admin on Mar.10, 2009, under Cars
Weighing The Decision To Trade In Your Used Car
Auto parts are designed to last a lot longer than they used to. In the old days, it was common for a 10-year old vehicle to experience constant problems, requiring time, money, and patience. These days, the parts under the hood are more advanced and durable. With regular oil changes and minor maintenance, you might be able to drive 100,000 miles before noticing any problems.
That said, car parts fail over time. Transmissions slip, engines stall, and alternators fail. Spark plugs can go bad and your radiator might overheat with increasing frequency. The older your vehicle gets, the higher likelihood such problems will occur. At some point, you need to decide whether it’s smarter to get rid of your current ride and buy a new one. Below, we’ll explore the pros and cons of purchasing a new vehicle versus repairing your old one.
Advantages To Buying New
The biggest advantage to purchasing a new model is peace of mind. If you’re currently driving a vehicle that has 200,000 miles on it, you know what it’s like to worry about breaking down. A new model eliminates that concern. Another benefit is convenience. Not only will the ride be more comfortable (usually), but frequent trips to the local mechanic will no longer be necessary.
Safety is another factor to consider. New models have more advanced protective features. For example, electronic stability control and lane-change warning systems can have an enormous impact on the safety of you and your passengers.
Reasons To Keep And Repair Your Car
The main reason to keep your current car is that it’s less expensive to do so. Even though it doesn’t seem that way when you’re paying $2,000 for a rebuilt transmission, the long-term savings are significant. Keep in mind that the interest you’ll pay on a 5-year auto loan adds up to several thousands of dollars. Plus, the depreciation on a new car during the first 3 years guarantees a massive loss in value. Lastly, the burden of monthly payments has a lasting effect on your budget.
Looking Down The Road
There will come a time when the only viable option is to get rid of your current vehicle. You’ll find yourself visiting your mechanic every couple of weeks for another repair job. First, the engine; then, a blown head gasket; then, the timing belt. Eventually, it becomes more expensive to repair your jalopy than it would be to buy another car.
While purchasing a new vehicle has obvious advantages, don’t dismiss the idea of buying a used car. There are millions of owners who have carefully maintained their vehicles over time and are willing to accept a reasonable offer. If budget is an issue, buying used can be a fantastic way to find a bargain.
Related Blogs
- Related Blogs on Car Tips
- cartips » Blog Archive » Factors That Influence Car Insurance Cost
- cartips » Blog Archive » Take a look at the Mazda 6 a top choice …
- Money online – Currency – Finance – Debt credit card – Credit card …
- Americans And The Love Of Their Cars – Helpful Info | Shaister …
- Related Blogs on Car Trade In
- China Trade Information » Banking shares give key index a heave
- Trade permits for road Discounts « Breaking News And Reviews
- China Trade Information » SAIC and FAW may be prompted to buy rivals
- Related Blogs on Cars
- Americans And The Love Of Their Cars – Helpful Info | Shaister …
- Should Ex-president Kufour Return The Cars To The State? I Say Yes …
Related posts
How To Save Money On A New Car
by admin on Oct.15, 2008, under Car Tips
How To Save Money On A New Car
Most people only consider a new car’s sticker price when they’re shopping for a vehicle. They may give a cursory nod to fuel efficiency and dependability. They might even consider the impact of tax, licensing, and registration. But, often, a new car’s brilliant shine and competitive price are the main focus. Unfortunately, shopping by price alone can distract buyers’ attention from factors that can affect the true cost of a car over the long run. This is the primary reason why buying cars can be so expensive. The sticker price may be attractive, but it doesn’t reflect the long-term cost of owning the car. Below, I’ll explain how to quickly research cars in order to find the best value for your money.
Research And Due Diligence
Today, researching new vehicles is much simpler than several years ago. You can access most of the information you need online. That can include reading reviews at ConsumerReports.org, ordering detailed reports for specific models you’re interested in, and finding out what other buyers are saying about those cars. By doing your due diligence before approaching a dealer, you’ll be able to identify cars that meet your unique needs at a price that fits your budget. What’s more, you’ll be better prepared to negotiate with the dealer.
Don’t Forget Car Insurance
A lot of people forget that car insurance premiums can be influenced by the type of cars they purchase and the kinds of features they include. For example, a Ford Taurus may only cost $1,000 per year to insure. Meanwhile, cars that are targeted by thieves such as Honda Accords, Toyota Camrys, and Nissan Sentras may command higher insurance premiums. This is especially true if those vehicles have options like xenon headlights.
Value And Dependability
Your car’s dependability and value retention have a substantial impact on its overall cost. If you’re forced to have mechanical problems repaired often, the low sticker price of a new car won’t matter much. Even if those repairs are covered by the warranty, the time it takes to drop your vehicle off at the dealer and secure a rental car can be significant. Also, some cars retain very little value after 5 years. If you’re planning to sell the car later or trade it in for a new one, its low resale value carries its own cost.
When you’re preparing to buy a new car, take the time to look beyond the sticker price. Do your research to identify a car that will suit your needs while meeting your budget. Consider the insurance premiums you’ll have to pay. If possible, speak with an insurance agent about the model you’re thinking about buying. Finally, keep in mind that your new vehicle’s dependability and resale value play a major role in the long-term cost of owning it. With these things in mind, you’re ready to negotiate a good deal that makes sense over the long term.
Related posts
The Road To Car Depreciation
by admin on Oct.15, 2008, under American Classic Cars
The Road To Car Depreciation
Cars are, by nature, depreciable assets. Aside from the odd collectible, vehicles lose value each year. That said, most drivers are surprised to learn how quickly their cars lose that value. It’s something that most people neglect to think about whenever they shop for a new car. But, depreciation in your vehicle’s value is the primary reason why most financial planners recommend keeping your old car rather than purchasing a new one. After all, from a fiscal perspective, there are few reasons to spend money for an asset that loses value so quickly.
Below, I’ll explain car depreciation in more detail. We’ll discuss sticker price, resale value, and what you can do to help ensure your used car retains as much value as possible.
More To Value Than Sticker Price
Most car salespeople understand intuitively that prospective buyers look at a car’s sticker price first. With gas prices climbing higher, they might then look at fuel efficiency. But, it’s the rare buyer who seriously considers a vehicle’s resale value when shopping for a new car. However, shopping by sticker price is a foolhardy strategy. It’s not reflective of what the car will be worth after a few years. And because depreciation is the single most expensive factor in purchasing a new car, it deserves priority.
Most automotive experts agree that cars lose, on average, between 15% and 20% of their value after each year. From another perspective, a new car will be worth approximately 35% of its sticker price after 5 years. So, that dazzling new $25,000 Ford Mustang will only fetch $8,750 at the end of its fifth year.
Ensuring Your Car’s Resale Value
Fortunately, there’s plenty you can do to help support your car’s resale value. Experts suggest that owners avoid unconventional interiors or exteriors. They may look great today, but they’ll become dated quickly and pull your vehicle’s value down. Also, cars with traditional body styles tend to hold their value more effectively than vehicles with radical styles. Finally, if possible, invest in features that owners will consider attractive or important down the road. For example, when air bags were optional, a lot of car buyers included them within their vehicles. Years later, cars with air bags commanded a premium.
Setting Your Expectations
Your car, whether new or used, is going to depreciate. There’s no way to avoid it. The important thing is to understand how that depreciation affects your financial investment in a vehicle. If buyers considered the influence of depreciation when shopping for new cars, it’s likely that many of them would rethink their decision to get rid of their old cars.