When it comes to the cost of cars, people pay a lot of attention to the price they pay, their financing costs and the trade-in value they get. But the cost of owning a car can be as much or more than the cost of buying it. Maintenance and repairs can add greatly--or not--to your car budget. Insurance is also another major expense. An important way to reduce the costs of owning a car is to drive gently.
The harder you push a car, the faster it wears out. Charging down city and suburban streets as if you were driving in the Grand Prix puts a lot of wear and tear on the brakes, tires, transmission, and suspension. Drive the car gently, and the same items may last a lot longer. Take brakes. If you push the car hard, the brakes may need repairs every 30,000 miles, or maybe less. Drive the car gently, and the brakes may go 50,000 or 60,000 miles, or more, before needing work. If you put 100,000 miles on the car before you trade it in, hard driving could mean the expense of three brake jobs. Gentle driving may require paying for only one.
Tires offer similar savings. Properly inflated and rotated high quality tires, driven gently, may last 50,000 or 60,000 miles or more. The same tires on a car that's put through the paces every time you go to the grocery store may last only 25,000 or 30,000 miles--especially if you don't keep them properly inflated. If you drive the car for 100,000 miles before trading it in, you may have to buy two or three sets of replacement tires, or just one, depending on how you drive.
Suspension systems are vastly improved over the shock absorbers in the classics from the 1950s and 1960s. The shocks of that era might need replacement every 15,000 miles. Today's cars, with McPherson struts up front and better shocks in back, last much longer. Vehicles with rugged suspensions, like pickup trucks and SUVs with offroad capability, may, if driven gently, go 100,000 miles without needing suspension work.
Gentle driving also reduces the chances of accidents and tickets for moving violations, because you're likely to be going slower. That means a better driving record, which translates into lower insurance premiums.
Exhaust systems also last much longer than those of 40 years ago. Back in the days of the General Lee, a car might need a new exhaust system every 15,000 to 20,000 miles. Today, exhaust systems can have much greater longevity. Perhaps counterintuitively, it's a good idea to drive a car at least once every few days to prevent buildup of water condensation in the exhaust system. That will reduce the potential for rust, and help the exhaust system to last.
As for routine maintenance, do what the manufacturer recommends. This is especially important if the car is under original or extended warranty (which will require compliance with the manufacturer's maintenance recommendations). The manufacturer's maintenance schedule can often be found in the owner's manual; or maintenance work will be indicated when necessary by codes or lights on the instrument panel. However, be skeptical of routine maintenance the dealer recommends. Dealers make much larger profits from their service departments than from sales. They will push service managers to foist all kinds of unnecessary routine maintenance on unsuspecting customers. For example, fluid flushes (e.g., power steering or brake fluid) are frequently recommended when not needed. The time to listen to the dealer is when you have a specific problem you've asked the dealer to diagnose (and even then, be on guard).
When it comes to buying a new car, going through dealers' Internet Departments can be a money saver. See http://blogger.uncleleosden.com/2007/05/buy-new-car-without-haggling-and-save.html.
Showing posts with label buying a car. Show all posts
Showing posts with label buying a car. Show all posts
Wednesday, September 7, 2011
Tuesday, November 10, 2009
Car Savings
If you're thinking of buying a car, don't just look at the price, mileage and cost of a loan. Some of the biggest expenses of car ownership come after you drive it off the lot, and they aren't well advertised. Here are some of the unpleasant surprises that await buyers of both new and used cars who don't carefully research their purchases.
Tires. Car manufacturers are increasingly using high performance tires to boost the driving experience of their products. The designs of high performance tires are taken from racing tires, and use softer rubber compounds to keep a grip on the road. This means the tires wear out faster and cost more to replace. Some high performance tires cost $500 each, meaning you have to spend $2,000 for 4 tires. This expense may come as soon as 20,000 miles and isn't covered by any warranty. Standard, black high wall tires, by contrast, cost around $100 to $150 each to replace, and can last 50,000 miles or more (depending on how you drive and how well you take care of the tires). You probably shouldn't replace high performance tires with standard tires, since each car's suspension is designed to be complemented by tires like the original equipment. So a car with high-performance tires can become a money pit.
Maintenance and repair costs. Many higher end cars, especially luxury nameplates like Mercedes Benz and BMW, are amazingly expensive to maintain and repair. Lexus and Volvo aren't cheap, either. Repairs on American cars that might cost hundreds can cost thousands for some high end cars. Part of the reason is that the parts are imported, and cost more because of the weak dollar. Also, the technology and design embodied in these cars can be more complex than in other cars. We also suspect that some of the cost is simply because the dealerships think they can get away with it because people expect high end cars to be expensive. Whatever the reasons, research maintenance and repair costs before buying.
Insurance. Insurance costs catch a lot of buyers by surprise. Small, inexpensive, fuel efficient cars like the Toyota Corolla, Honda Civic and so on can be more expensive to insure than a big old sedan like a Ford Crown Victoria or a mid-size SUV. A lot of the reason is smaller cars provide less protection in a collision. Also, because they are popular, they are stolen pretty often (for parts). Of course, your individual cost of insurance depends on your driving record, the state in which you live, the insurance company you use (shop around) and how large your deductibles are. But keep in mind the additional insurance expense of an "economy" model.
Depreciation. Models with established reputations for reliability and longevity depreciate more slowly than other cars. Toyotas and Hondas generally depreciate more slowly than Chryslers, Chevrolets and Fords. As American manufacturers improve quality, the depreciation rates on their models should improve. Research depreciation. It's a hidden cost that doesn't seem to matter while you own the car. But when you decide to trade it in, you'll find out that depreciation can be important.
Remember to use competition in your favor. When buying a new car, trying e-mailing the Internet departments of several dealerships for a price. You can easily get a quote lower than the showroom floor price. See http://blogger.uncleleosden.com/2007/05/buy-new-car-without-haggling-and-save.html.
Tires. Car manufacturers are increasingly using high performance tires to boost the driving experience of their products. The designs of high performance tires are taken from racing tires, and use softer rubber compounds to keep a grip on the road. This means the tires wear out faster and cost more to replace. Some high performance tires cost $500 each, meaning you have to spend $2,000 for 4 tires. This expense may come as soon as 20,000 miles and isn't covered by any warranty. Standard, black high wall tires, by contrast, cost around $100 to $150 each to replace, and can last 50,000 miles or more (depending on how you drive and how well you take care of the tires). You probably shouldn't replace high performance tires with standard tires, since each car's suspension is designed to be complemented by tires like the original equipment. So a car with high-performance tires can become a money pit.
Maintenance and repair costs. Many higher end cars, especially luxury nameplates like Mercedes Benz and BMW, are amazingly expensive to maintain and repair. Lexus and Volvo aren't cheap, either. Repairs on American cars that might cost hundreds can cost thousands for some high end cars. Part of the reason is that the parts are imported, and cost more because of the weak dollar. Also, the technology and design embodied in these cars can be more complex than in other cars. We also suspect that some of the cost is simply because the dealerships think they can get away with it because people expect high end cars to be expensive. Whatever the reasons, research maintenance and repair costs before buying.
Insurance. Insurance costs catch a lot of buyers by surprise. Small, inexpensive, fuel efficient cars like the Toyota Corolla, Honda Civic and so on can be more expensive to insure than a big old sedan like a Ford Crown Victoria or a mid-size SUV. A lot of the reason is smaller cars provide less protection in a collision. Also, because they are popular, they are stolen pretty often (for parts). Of course, your individual cost of insurance depends on your driving record, the state in which you live, the insurance company you use (shop around) and how large your deductibles are. But keep in mind the additional insurance expense of an "economy" model.
Depreciation. Models with established reputations for reliability and longevity depreciate more slowly than other cars. Toyotas and Hondas generally depreciate more slowly than Chryslers, Chevrolets and Fords. As American manufacturers improve quality, the depreciation rates on their models should improve. Research depreciation. It's a hidden cost that doesn't seem to matter while you own the car. But when you decide to trade it in, you'll find out that depreciation can be important.
Remember to use competition in your favor. When buying a new car, trying e-mailing the Internet departments of several dealerships for a price. You can easily get a quote lower than the showroom floor price. See http://blogger.uncleleosden.com/2007/05/buy-new-car-without-haggling-and-save.html.
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