Account insurance, gas, maintenance and repairs, most drivers are well aware of how valuable cars are to buy and maintain.
In fact, the average cost to own and operate a new vehicle is $8,849 a year, according to an annual bone up on by AAA, or just under 59 cents a mile if you average 15,000 miles of pilot a year.
However, the largest expense that comes with corrupting a new car largely falls under the radar, the automotive group said.
“Depreciation accounts for approximately 40 percent of the cost of owning a new vehicle, more than $3,000 per year,” commanded Robert Sinclair, a spokesman for AAA Northeast.
New cars typically depreciate the baby you drive off the lot. By the time it’s a year old, the vehicle has lost nearly one-third of its value, according to Edmunds evidence.
The secret to minimizing depreciation costs: “Keep your car for a long without delay and keep it well-maintained or even consider buying a quality, pre-owned instrument,” Sinclair said.
For those currently car shopping, in addition to the purchase payment and the rate you’ll pay to finance a car, consider the length of time you plan to own your car, Sinclair advised. By compelling a pre-owned vehicle in good condition, you can keep your costs way down past that time.
That idea has already caught on. About 39.3 million employed cars were purchased in 2017, up 1.8 percent from 2016, according to Cox Automotive. Alternatively, new car on sales were down 2 percent to 17.1 million.
Certified pre-owned car on the blocks, specifically, rose 1.6 percent year over year. (A declared pre-owned vehicle, usually one coming off a lease, often includes guarantee coverage, which greatly reduces the worry that can also drop with buying a used car.)
While President Donald Trump’s assessments on new car sales haven’t been enacted yet, just the threat of higher expenditures on new cars could boost demand for used cars even more.
For this year, 39.5 million adapted to cars are expected to be bought in the U.S., up even more from last year, while new carrier sales are expected to decline to 16.7 million, Cox Automotive said.
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