|
Maintaining Present Vehicle May Make
Financial Sense
Although you may want to get rid of your present vehicle in favor
of a new car, taking better care of your current set of wheels may
make much more sense in the long run-helping you achieve a goal of
financial freedom.
"We advise our clients that if they want a 10 percent increase on
their investments every year, they need to cut down on their
expenses," said Terry Mulcahy, vice president of investments for
R.W. Baird.
"A new automobile is, for most people, their second biggest
investment next to a home, so a great way to save money and increase
financial assets is to hang onto their current vehicle rather than
buy a new one every few years. Budgeting for and doing preventative
maintenance on your car is one of the best ways to cut your costs
and keep your car."
The Car Care Council estimates that more than $60 billion in
vehicle maintenance and repair is not performed every year, evidence
that there is considerably more that consumers should be doing to
protect their automotive investments.
"Whether it's an oil change, replacing brakes or new belts and
hoses, that periodic repair bill is a drop in the bucket compared to
monthly payments on a new car," said Rich White, executive director
of the Car Care Council. "The bottom line is that a properly
maintained vehicle is safe, more dependable, more fuel efficient,
less polluting and more valuable. The smartest way to get a solid
return on investment is to keep your car through what we call the
'Cinderella Era.' It's that period of time after the payoff when
your car is still in great shape and needs only modest repairs."
Figures from Runzheimer International, a management consulting
firm that measures travel and living costs, confirms the Council's
claims. Recent figures from a Runzheimer study show that trading a
vehicle every eight years instead of every four can save more than
$2,481.75 a year after the payoff. That includes repairs and
maintenance, license, registration, taxes and
insurance.
|
.gif)