One way the rich get richer and the poor get poorer
Typically, your auto is your second largest investment; only it’s not really an investment. My father always said if it has wheels it’s going to go down in value. That is true, because with a rare exception, cars depreciate not appreciate. The rate at which a vehicle depreciates can also be controlled to some extent by the manner in which it is taken care of. Nonetheless, for most of us it is just a tool to get us to work or to the store or to ball practice. In this article, I want to share with you some secrets the rich know about how to help them save a fortune and help increase their savings accounts.
According to Edmunds, a major vehicle valuation company, the average car payment is about $479 per month or $5,748 per year. In my experience, many people are getting rid of their vehicles when they have approximately 100,000 miles on them. That means the vehicle is a little over 6 ½ years old if purchased new. Our experience at the shop is most of these vehicles have not been properly maintained for longevity, and therefore most likely need major repairs or significant amount in maintenance. (Approximately $1500 average).
With facing these kinds of facts, many choose to go trade in their vehicle and begin the car payment process all over again. Most car loans are now in the 6 year range, so they have only been car payment free for 6 months. What if I could show you how to be car payment free for over 8 years, saving you $40,000 or more? Would that interest you? Well, it can be done. I promise!! In fact, it is super simple. Here is how it works.
What I know from 30 years of experience as a professional Automotive Technician, as well as personal experience with my own vehicles, is that a well maintained auto, no matter the make or model, will go 200,000 miles trouble free. This typically takes 13 + years to accumulate 200,000 miles. Let's look at an average example. First, let’s establish some assumptions. Let's say you purchase a vehicle either new or nearly new and finance it for 5 years. Let's assume you drive the national average of 15,000 miles per year. On average you will need the following services over the period of 200,000 miles:
Divide this by 13 years, and you come up with approximately $780 per year to properly maintain your vehicle. Subtract this amount from the average annual car payment and multiply the remaining figure by 8 years (the amount of time remaining after the vehicle is paid off,) and you get a number nearing $40,000 + or – depending on your car payment and type of vehicle. Some vehicles require a little more maintenance while others may require a little less. By the way, these figures are with premium services like BG products; the best in the industry. That having been said, if you were to save the money you are not spending on car payments, you can very easily pay cash for your next vehicle at the end of its useful life. Now, the exciting part is properly maintained vehicles often go well beyond 200,000 miles trouble free, so it's up to you as to how much money you save.
Our team of professionals at Any BODY’S Garage is dedicated to keeping your vehicle trouble free but most importantly safe and reliable for you and your family. If you have any questions about how to achieve these results or would like a free 53 point Maintenance Inspection to determine the current status of your vehicle, just call our office and we will be more than happy to schedule one for you.
Happy Motoring Jeff Bain, AAM
ASE Master Certified Technician
I'm busy working on my blog posts. Watch this space!