It’s true that new cars are less likely to break down, have mechanical issues, or otherwise let you down for the first year or so. However, that doesn’t always make a new car the better choice than a used one. Well-maintained used cars are often as reliable as new cars and are typically less expensive overall.
Let’s take a look at some general financial figures before reviewing car costs across a range of categories.
A recent post on Bankrate.com states that the average monthly payment for a new car is $648, while a used car payment averages $503 per month. That said, used car payments can be far less than that if you buy something more than a few years old or you choose to pay cash.
When purchasing a new car (or a used car from a dealer), there are things you can do to make payments as low as possible:
Some dealers offer free general car maintenance (oil changes, tire maintenance, small tune-ups) for the first five years or the first XX miles. These are worth paying attention to, especially if you aren’t a DIY maintenance type and plan to pay service technicians to perform the work.
However, in addition to monthly payment costs, vehicle owners must consider the average maintenance costs for the vehicles in question. For example, the cost to maintain and repair a European car (Mercedes, BMW, Volvo, Audi, VW) is almost always more expensive than the cost of maintaining other options (Toyota, Ford, Honda, Kia, Chevrolet, etc.).
Maintenance costs are also projected to differ based on the age of your car. Again, Bankrate.com compares the estimated maintenance costs for the vehicle’s first year (oil changes, tire rotation, small potential repairs) between a 2022 and 2017 Honda Accord EXL; the 2022 model runs about $133 per year, while the older model is estimated to cost $1212.
If you’re planning to save money upfront by purchasing a used car, we recommend reading Top 10 Cheapest Cars to Maintain Over 10 Years. Then, look to purchase notoriously well-made brands that require less in lifetime maintenance costs. Not surprisingly, almost all of them are Asian imports like Honda Civic, Honda Fit, Mitsubishi Mirage, Toyota Camry, and Toyota Prius (before the battery needs replacing).
Purchasing a vehicle brand or model known to last saves you thousands of dollars over the car’s lifetime and also lowers your risk of breaking down while en route.
If you like the idea of a new car because you worry about maintenance needs or breakdowns, but you don’t feel comfortable springing for a new car price look into certified used cars. Most car lots certify their used cars and offer the same types of warranties as their new cars. In most cases, this is because the car is in excellent shape, has minimal miles for its age, or is less than five years old. Certified used cars may also come with free roadside assistance packages.
That certification from the dealer may add a few more dollars to the monthly payment but pay off in terms of future maintenance costs and peace of mind.
If saving money is a priority, fuel economy should be at the top of your vehicle preference list. Gas is at an all-time high, and so even a few gallons more per mile can save you hundreds of dollars if you are a daily commuter. Purchasing a smaller model always helps as lower weight means better gas mileage. Also, many new models are far more fuel efficient than their older counterparts, so the extra money per month for a new model may cost less than a used version with higher fuel expenses.
Also, while the higher sticker price for hybrid and electric cars may be off-putting, those dealers typically offer great maintenance and roadside assistance packages - for both new and used cars. When creating a long-term vehicle budget, you may see the extra money you pay upfront is recouped in the savings you gain from dealer-provided maintenance and fuel savings - especially if your home or business runs on solar.
If you’re choosing to purchase a car from an independently owned lot or a private owner, make sure to schedule an appointment with your trusted mechanic before handing any money over. These deals offer you minimal to no protection, so you need to trust the car is as good as advertised. Yes, the car may be thousands of dollars less than on a used lot, but that means nothing if the engine blows on you in the first few months or years.
Regardless of whether or not you spring for a new or used car, the team at J&T Towing is here for you. J&T Towing offers roadside assistance and towing for all makes and models of cars, trucks, and vans. Contact us when you need us at (707) 356-4613.
