3 Car‑Buying Truths Most Shoppers Learn Too Late
So, you're thinking about buying a car. You're not alone. Chances are, you already knew that most of your friends, neighbors and coworkers own a car -- or two or three. Especially if you live in a heavily congested area, you've probably experienced the joys of bumper-to-bumper traffic during rush hour.
However, there are some facts and trends about buying and owning a car that are worth knowing before you get one. That way, you can make an informed decision about whether you truly want to make the purchase and if it works within your needs and budget.
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1. Cars Lose Value Faster Than Most Buyers Realize
You've probably heard that vehicles start losing their value the moment you drive them off the lot, and that's true. However, new and luxury vehicles tend to lose value faster than used cars, especially in the first few years.
Tariro Goronga, an automotive expert and the CEO of DriveSafe Driving Schools in Colorado, suggested looking into nearly-new or certified pre-owned vehicles instead of brand new ones. These have already experienced the initially high depreciation and will lose value more slowly.
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2. Owning a Car Costs Far More Than the Sticker Price
When it comes to budgeting for a car, it's not just the initial price tag or interest rate on your loan that you need to think about. It's also the total ownership costs. This includes maintenance, gas, monthly financing and other fees.
Before buying a vehicle, it's especially important you don't underestimate maintenance or repair costs.
"Older cars may have higher maintenance costs due to out-of-warranty repairs," said Goronga. "However, newer cars could also carry expensive maintenance schedules and higher insurance premiums."
Hybrid and electric vehicles usually have lower maintenance costs, Goronga added. Even so, it's a good idea to see what other people have spent on similar makes and models to ensure you have a clear idea of what you're getting into.
3. Vehicles Now Last Long Enough To Make Buying Used Smarter
Cars used to only get about 50,000 to 100,000 miles. They also tended to last around 7 years on average. Fortunately, you can expect much more use out of a conventional vehicle today.
"Thanks to advancements in technology and materials, the average lifespan of cars has been increasing," said Goronga. "Many vehicles can now surpass 200,000 miles with proper maintenance."
With proper maintenance, many modern vehicles can remain reliable for well over a decade.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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