Do You Really Want To Save Money??
Then think about this.
With the onslaught of recalls , scandals and high prices a new car is not always a pleasure. But more importantly the vehicle your driving is capable of lasting 15-20 years and 400,000 km with proper maintenance. So consider following the manufactures guidelines and keep your vehicle longer:
Let’s say your current vehicle costs you $1800.00 a year to maintain on average (this is high) and you decide to trade it for new vehicle. Let’s also say the new vehicle costs $30,000 (most are more) plus freight, PDI, air tax, HST, admin fees, and no doubt salesperson will try and sell you extended warranty insurance (not required) and paint and fabric protection and so on.
Doing some quick math and looking at an actual dealer invoice that comes to just under $35,000.00. So not even considering the cost to borrow the money or the initial cost of vehicle, you have $5000.00 over and above cost of vehicle to consider. Now go back to the $1800 or $150 month to maintain your current vehicle. Divide the fees associated with new car purchase $5000 by the $150 month you will find you can maintain your current vehicle for another 33 months almost 3 years!! We have not even considered the depreciation of new car once driven off lot which is approximately 25% or the fact you will only get wholesale dollars for your trade in.
Take the $30,000 and invest it or take the interest per month if you borrowed for vehicle and save it.
Food for thought!