July 13, 2017 -
Car Statistics you Need to Know
January 16, 2017
Buying a new car is a big decision, and an expensive one, so it is important to know some key statistics before making a big purchase. Buying a new car costs more than the number on the window sticker; there are additional costs associated with a new car that many people don’t think about when looking to purchase. Let’s look at some statistics you may not know.
Did you know that, on average, a new car costs $31,000? And that that new car will lose 20 to 25% of its value in its first year simply because of depreciation? And the expenses of purchasing a new car don’t stop there – the average interest on a new car for 60 months is 2.5%. This interest coupled with the car’s price of $31,000 will average you a payment of $550 per month. In addition to the base price of $31,000, on average, there are also taxes and title and tag fees to take into consideration, which can easily total over $2000. Taking these averages into consideration, your first year of car ownership could cost you just shy of $17,000, $16,510 to be exact, based on these estimates. Using these numbers, you would pay an estimated $6600 in your first year of car payments alone, not taking into consideration any adjustments to your insurance for adding a new car. These statistics, however, are using the national averages in car purchasing and vary widely based on the make and model of the car.
What Option do I Have?
If you’re considering a new car because your existing car is having mechanical trouble, it’s important that you find a good mechanic that can help you determine if your car is still viable. Keeping an existing car, even if it has mechanical problems and needs work, will in most cases save you money in the long run. Say, for example, you purchased the $31,000 new car and you pay interest, insurance premiums, taxes and title fees, and you spend an average of $16,500 in your first year of car ownership. Now consider you took your existing car into the shop to a good mechanic and instead spent, say, $2000 outright to get your car in good working condition. You have no interest to be paid on this car, the car depreciates slower than a new car, you aren’t hit with taxes and title fees, and in many cases you don’t even have a car payment. Looking solely at statistics and finances which is the wiser decision?
At Choisser we understand that purchasing a new car is a big decision, and we understand that many factors go into consideration when looking into purchasing a new car. But we would like to encourage you to consider the statistics, and to consider the state of your current vehicle. We take pride in our ability to assess and diagnose any car problems, and are confident our staff can help you make a wise financial decision. If you’re considering purchasing a new car because of a mechanical issue with your current car, give us at Choisser a call today to discuss your options. Our team of professionals can quickly diagnose your car and help you determine the best course of action.
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