Making an Economic Decision
Buying a car can be a very tough decision. You have to look at your budget and have to decide what car you want to buy. Many cars look very appealing on the showroom floor. You are even able to take it out for a test drive to see if it meets your expectations. On the other hand, there's really no way to test drive a vehicle reliability. Cars are very expensive to own if you don’t choose the right one. Japanese car companies are known to produce the most reliable cars. They rarely have random parts break. Also, the cost to service a Toyota will be a much lower cost than a BMW. The lowest cost to own cars includes Toyota Prius, Toyota Camry, and Honda Ridgeline. BMW, Mercedes, and Audi are very famous for being luxury brand cars but they cost a lot to service.After the warranty runs out for these companies the depreciation of the car skyrockets. This causing many cars that are being sold to have it’s warranty about to end or it is already done. If you decide to lease a car you don’t have to deal with service fees but there are many terms that can still make you pay fees. With a leased car you have a set limit of miles you can drive and you have to keep the car very nice otherwise you are hit with fees.
Doing research about certain models can save you a lot of time in the long run. Companies have models that are more reliable than other models. In some cases, there are models that are famous for a problem or certain thing to break. For examples, Subaru WRX STI’s are famous for having oil consumption problems which can be very problematic without being treated.You have to look and see if buying a brand new car is worth it. Buying a new car can be hard on the wallet. Not only do new cars cost a lot more than used cars, but they depreciate in value more quickly too. A vehicle loses the most value in the first few years of ownership. In just one year with an estimated loss value at around 19 percent. Not only will you be paying more up front but newer cars often have a higher insurance cost. Although it may seem like buying a used car is a lot better. You have no idea how the person treated the car before you bought the car. Also, it will be super tough to find a certain used car with the color and packages that you want.
Overall you have to look in the long run. If you are okay with spending a little more money at first and you plan on keeping the car for a while. It's a good investment to spend a little more in the beginning because you know that you are gonna take care of it. If you are more on a budget it's a pretty safe option to go with a used car with little miles on it. You may not get all the features and packages but you will be saving money on a reliable car. You have to look at the opportunity cost and see if it is worth it to fork out a bunch of money on a new car.
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