December 30th, 2009
Lets divide the car buying world into two group: those who keep a car until it dies and those who buy a new car every few years. Bottom line, there is no cheaper way than to properly maintain your vehicle and keep it over 200,000 miles. New cars smell nice, but usually don’t make sense financially.
Several independent studies have shown the financial benefits of keeping your car longer. The following table from Runzheimer International, a management consulting firm, compares keeping a 4 year old car another 4 years versus buying a new one, showing a savings of $10,894.00!
| New vs. Used Vehicle costs |
4 year total
Old |
4 Year total
New |
| Car payment Principal |
$0 |
$14,501 |
| Interest on loan |
$0 |
$2,167 |
| Fuel costs |
$7,764 |
$6,936 |
| License, Registration, Tax |
$696 |
$796 |
| Insurance |
$4,192 |
$4,634 |
| Maintenance |
$3,759 |
$3,224 |
| Total Expenses |
$16,548 |
$32,258 |
| Minus retail Value |
$3,759 |
$8,575 |
| Total costs |
$12,789 |
$23,693 |
| Difference |
+$10,894 |
|
This table from consumer reports compares keeping a Honda Civic for 15 Years versus a new Honda Civic every 5 years. Saving of $20,500!
| Total price of new vehicle(s) |
$19,000 |
$66,400 |
| Depreciation |
$14,900 |
$35,500 |
| Maintenance& repairs |
$18,300 |
$6,200 |
| Financing & interest |
$3,100 |
$8,500 |
| Fees & Taxes |
$2,200 |
$4,800 |
| Insurance |
$18,000 |
$22,500 |
| Total Costs |
$57,000 |
$77,500 |
| Difference |
+$20,500 |
|
So if those repair bills seen to be adding up, do the math. Does the cost of repairs exceed the cost of a new car? A typical new car is $21,000, about $350.00 a month for 5 years after 20% down. A major engine repair might run $1,500, a huge outlay in one chunk, but far less than the $4,200 a year you would spend on new-car payment every month. In any case, anyone with a car older than three years old should be a saving of $100.00 a month for repairs and maintenance. With a little luck, you’ll never use the most of it and you’ll have a tidy sum to spend on your next car.
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December 30th, 2009
1-Buy a safe, reliable car.
Pick a car with a good track record and then have us do pre-purchase inspection. Many times a pre=purchase inspection can help avoid a poor choice or a t least offer an estimate of repairs and maintenance needed in the near future. There are not perfect used cars in the dealer’s lots and the cost of an inspection is readily recovered using the results to negotiate a price.
2-Make repairs promptly.
The most important thing in keeping a vehicle performing properly is to make necessary repairs promptly. Postponing needed repairs often costs more. For example, ignoring a fluid leak can leak can lead to a low flow fluid level causing premature wear on expensive mechanical components or preventable breakdowns.
3-Do regular inspections.
Problems can arise at any time and for inexplicable reasons. Whether you do it yourself or rely on us, exterior, under hood and under vehicle visual inspections can prevent roadside emergencies.
4-Follow our maintenance schedule.
Your vehicles owner’s manual is a starting point for your maintenance information. With our experience, your driving habits, and a physical inspection of your vehicle we can work with you to put an affordable, personalized maintenance schedule together for you. Changing fluids, spark plugs, filters and timing belts can do wonders for extending the life of your vehicle.
5-Keep it Clean.
Get out the cleaning products periodically or have your vehicle professionally detailed. Regular cleaning inside and out can make your vehicle a more pleasant place to be as you roll up the miles. Frequent washing and waxing will help preserve the paint and keep the sheet metal from rusting. Vacuuming sand and dirt out of the carpet and seats minimize wear that leads to tears and holes.
The recommendations above come from a combination of sources including our real world experience at Aspen Auto Clinic. We see high mileage vehicles in our shop every day. The results of proper care and/or neglect become apparent. We believe it is our professional responsibility to inspect vehicles carefully, keep records of all your vehicle maintenance and repair needs, and keep you informed. Our mission is to help you save money on the cost of ownership by performing the best maintenance and repairs possible with the most convenient and hassle free service.
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