The Real Cost Of Your Car

Owning a car is very expensive. Real account involves much more than the purchase price, or a monthly car payment. That is only about half the average monthly car expense. The true value of your car includes: First, your loan payments. A 5-year loan for $ 20000 car is about 400/month, depending on your bet. Secondly, insurance (collision because of the loan), usually from $ 75 to 200 per month (depending on where you live). Third, gasoline at $ 3.00 per gallon, while the average utilization rate of 15000 miles a year, costs about $ 150 per month. Summer 2007, it would be, for example, $ 200 a month, as gas is scheduled to be closer to $ 4.00 per gallon. Finally a simple repair (assuming that $ 300 a year, which is conservative, even for a car on the guarantee), maintenance, and annual registration, all add up to $ 60 a month. In all, forgetting the extra things you do to your car or, in the MIDDLE of a car worth $ 685 and $ 860 a month. I will not even begin to own a truck! Within five years, you will have spent from $ 41000 and $ 52000 to $ USA for your car, which is now worth close to $ 4000 dollars. Do you feel that you are getting the most for their money? As a rule, you have no choice whether or not to drive, but you have a choice that you drive and how you drive.
So when buying the next car, consider the real cost of your car, and what factors influence on the that the cost. Owning a car is a luxury you want. A luxury most can afford, rather than decide it is necessary. Will you need four-wheel? How many passengers will you regularly carrying (how big your family)? Also, consider how long you want to keep the car as the number of passengers could change before you are ready for another car. Finally determine to purchase that you are willing to spend on a monthly basis for the car. Let this figure determines the type of car you buy and the price you are willing to pay, and, if at all possible, buy used. There is nothing wrong with buying a new car, but if you try to cut costs, buy used. At the intrinsic value of the car is largely dependent on his age. As long as he can get from one place to another, it has value and the extent that the cost depends on how long that the car will continue to serve this purpose, less spending on maintenance to keep its services. Any price above values can be attributed to marketing and personal preferences; considered foreign property. A new car comes with an intrinsic value that would be proportional to the collapse of the use and abuse, despite the fact that the vast majority of new car price collapse of the external and depends on the use to exponential, which means that they will lose a percentage of their value each year. As long as there is no value left. For example, if you buy a $ 20000 cars labor that 20% every year after the first year of your car is worth $ 16000, after the second year it cost $ 12800, a $ 10240 third year, and after 5 years, costs $ 6553. These figures are only illustrative. True depreciation car a little higher (about 28% annually). After the third year, the price of the car is beginning to stabilize. If you want your car, as a new, as can be and still have a good price, buy it after 3 years. If you want a little depreciation as possible, wait until the car for at least 6 years. At the moment, a car old enough that a large proportion of the external value of the car is decay, but still tend to be free of major physical wear.
You can estimate the intrinsic value of the car, for how many different mileage influence prices. For example, if you have two cars of the same make, model and year; If the first was 120000 miles, and sold for $ 10000, and another 60000 miles sold for $ 13000, and then, based on the selling price, the intrinsic value of 60000 miles $ 3000. If the market is aware, the average life expectancy in this machine, 180000 miles, and then the first car value is $ 3000, the second car is worth $ 6000, and new car has been an integral, valued at about $ 9000 and the external value of $ 21000, if bought new for $ 30000.
Once you have a good measure of value, the next step is to determine what to buy mileage range. It depends on how much time you intend to keep the car going and a budget for maintenance. A car with higher miles can respond the same way as your timing and cost less. For example, if a car model is not expected to last for 200000 miles, and want to own the car for more than 5 years, then you probably should not buy a car with more than 125000 miles. Unless you intend to have the car for 2 years, then you can with a higher mileage car and pay considerably less initially. The same rule also applies to warrantees. If car warranty expires at 100000 miles, and you want to keep it for at least 3 years, you will probably want to buy a car with no more than 65000 miles.
This is a simplified description of a car prices, as well as many other factors also affect the price . In general, looking for the right vehicle, remember these three things: first, to know exactly what you need, secondly, to find out how long you plan to keep it, and thirdly, the use of age do not determine the value. jessenia emma



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