Does Buying A Used Car Save You Money In The Long Run?

NEWSUSED SHOULD I BUY A NEW OR USED CAR? We know fuel economy improves over time as the auto industry evolves. But that's not the only thing that drives the yearly cost of owning a vehicle. Taking insurance, maintenance and repairs into account, is it better for you to buy the latest model or go with a used one? Let's find out by comparing two model years of one of America's most popular vehicles: the Toyota Camry. INITIAL COSTS 2015 CAMRY 2008 CAMRY Standard model starts at Expect an average price of $22,970 $11,000 28 25 Standard 10 MPG MPG Standard 25 CITY 35 HWY VSC, TRAC, ABS, EBD, BA & SST ABS, EBD & BA Airbags 21 CITY Airbags 31 HWY INCENTIVES + BENEFITS Dealer Incentives Benefits of Used 2$ Cheaper; avoid processing, preparation & advertising fees Low APR Interest-free or low-interest financing Loans or financing may be available from banks or the dealer Cash rebates Avoid new car depreciation (up to 30% in the first year) Free scheduled maintenance Confidence in the vehicle's Your state may have lemon laws³ that protect you if you condition; dealer can help with issues are sold a defective vehicle OTHER EXPENSES No matter how old your car is you'll expect to pay some of the same yearly expenses. However, these can vary based on your car's age. You may have a few one-time costs as well. Let's break it down: One-Time Expenses $0 $0- $199 CAR HISTORY No vehicle history report is needed for a new car. A vehicle history report or VIN check is crucial to make sure you're not getting a damaged vehicle without knowing. $0 $2925 TITLE Nationwide, this is the average fee for a title transfer. It ranges from just $4 in Arizona, up to $100 in Maryland.3 The dealer usually takes care of the cost to title your vehicle. Yearly Expenses $1312 $1470 GAS With 28 MPG, the average person driving 15,000 miles a year will spend this on fuel at $2.45 a gallon.5 With 25 MPG, the average person driving 15,000 miles a year will spend this on fuel at $2.45 a gallon.5 $135 $225 OIL CHANGE At an average cost of $45 each, the average person driving 15,000 miles a year will pay this for oil changes. Oil changes are recommended every 5,000 miles for new cars.6 At an average cost of $45 each, the average person driving 15,000 miles a year will pay this for oil changes. Oil changes are recommended every 3,000 miles for older cars.6 $0- $200 $500 - $800 Your first recommended Needed repairs may include replacing the timing and serpentine belts; replacing the spark plugs; replace valves & hoses that are wearing thin; tire rotation; and brake inspection or repair.6 If additional repairs are needed, expect to pay more. UP-KEEP inspection happens at 15,000 miles. This may include a tire rotation and inspection of the brakes & cooling system.6 The cost may be covered by your dealer. $900 - $2500 INS- URANCE $1200 - $2700 Cost of insurance varies widely based on driving history, car type, age, marital status, and where you live.7 However newer cars are Cost of insurance varies widely for used cars as well.7 However, older vehicles are often more often cheaper to insure due to safety features.3 expensive to insure because they have fewer safety features and are more likely to be stolen.3 $75 $4850 TABS Nationwide, this is the average ABC-123 Nationwide, this is the average fee for annual tabs and fee for annual tabs and registration on a 2015 car.8 registration on a 2008 car.8 Additional costs to consider Monthly payments may vary greatly, depending on whether you pay on the spot with cash or have a used car loan or financing. Additional costs to consider Monthly payments may vary greatly, depending on whether you pay on the spot or have financing through your dealer. OTHER 24 BOTTOM LINE NEW USED A new car will depreciate as soon as you drive off the lot and you may end up paying off your car over a long period of time. With a used car you could get stuck with unforeseen maintenance and repair fees. Used cars typically have worse gas mileage and fewer safety features as well. However, you will enjoy low APR, great financing options, plus other dealer perks. New cars also have better gas mileage and more advanced safety features. On the other hand you may be able to get a better deal on a used car and it won't depreciate like a brand new car will. WHEELSFORWISHES.COM/BUYING-NEW-VS-BUYING-USED WHEELS SOURCES 1 www.toyota.com/content/ebrochure/2015/camry_ebrochure.pdf 2 www.cars.com/toyota/camry/2008/snapshot 3 www.dmv.org/ 4 www.cars.com/go/advice/Story.jsp?section=buy&story=nuUsed&subject=new_used 5 www.fueleconomy.gov/feg/pdfs/guides/FEG2015.pdf 6 blog.esurance.com/car-maintenance-by-the-mile-what-your-mechanic-isnt-telling-you/#.VRLYNvnF91B 7 www.autotrader.com/research/article/car-shopping/201898/hidden-costs-of-buying-a-new-car.jsp 8 www.ncsl.org/research/transportation/registration-and-title-fees-by-state.aspx FOR WISHES Disclaimers: Car prices and incentives change regularly, so check with your nearest dealer for exact numbers. Registration fees are calculated differently depending on where the car is registered. Insurance costs vary by driver and state. Smog check and emission test regulations vary by state. Check your local laws for requirements. Sales tax and potential property tax will vary by state and seller. Research your local tax when considering cost. Follow manufacturer's recommendations on scheduled maintenance. %24