Automobile Condition Vs. Cost

Almost all of the car dealerships in Houston push the cost of a vehicle as the selling point of a particular vehicle. The gimmick is simple, they place the Manufacture Suggested Retail Price (MSRP) on the window of the car to make it seem more expensive than it is. The MSRP is a suggestion but also a deception, be careful when a dealer claims he’s saving you money by showing you this price.

A lot of the car dealerships in Houston, will then use the “cushion” they have on the price to make you think you are special when they lower it by a few thousand dollars.

The right way to shop for a vehicle is to breakdown the value of what it’s worth over its’ lifetime. This is done simply by calculating the your price for the car today, then adding all of the maintenance fees you’ll pay over the next few years. For example, let’s say you buy a 2004 Toyota Camry with 80,000 miles for $6,500

You have to tally in the cost of repairs. We can estimate this based on the condition of the car. Categories that measure a cars condition are: engine components (such as the motor, radiator, alternator, air filter, battery, etc); tires, exterior components like windshield wipers, headlights, taillights, suspension, brakes.

If the car is in “okay” condition, then it’s very likely you would spend about $3000 in repairs over a 4 year period with out any unpredictable factors increasing the chance of breakdown. That means the value of the car is only $3,500 over a four year period. To simplify, if you buy a car for $9,000 and it had little to no repairs in a 4 year period, you would be getting a better investment for you money.

Car shopping on cost alone is the single biggest problem with unsatisfied vehicle customers. When you shop with worth in mind, you will have a better perception of what you will really be spending and it will help you determine whether you are getting the best bang for your buck!

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Posted on 31 July '10, under Cars.