Cooperative Living June 2024 - 23

CROSS ROADS
Where the
Rubber
Meets the
Road
Seeing your car as an
investment, not an expense
story courtesy of Brandpoint Media
n these infl ationary times, the cost of
owning a car seems to increase daily.
Th e price of buying a car is growing,
and so is the cost of operating one. We
all want personal transportation and the
joy of car ownership, but the fi nancial
statistics are challenging.
Th e prices of new and used vehicles
skyrocketed in the aſt ermath of the
COVID-19 pandemic. According to
J.D. Power, new-vehicle transaction
prices shot up 13% in 2021 and then
surged up another 13% in 2022. Th e
increases moderated a bit last year,
but prices haven't yet fallen in 2024.
Th e prices of used vehicles have
escalated even more rapidly over the last
several years as consumers who couldn't
fi nd an aff ordable new car have turned
to the used car market. Again, the prices
have moderated in 2023, but used
vehicle prices are up at least 20% versus
their levels in 2021.
At the same time, the cost of
maintenance and replacement parts has
also zoomed up. So has the hourly rate
of auto repair labor. Th ough fuel prices
have dropped from their all-time high
of a couple of years ago, they are still
infl ated versus their pre-pandemic level.
Although economic news regarding
transportation costs overall is
challenging, auto experts at Mercury
Insurance have a suggestion that could
change the way you look at these costs.
Th eir suggestion is to treat your
co-opliving.com
I
The key to gaining a fi nancial advantage from viewing
your car as an asset is owning it for a long time.
vehicle as an investment, and not an
expense.
Rather than seeing your vehicle as
a piece of equipment that needs to be
replaced frequently, like a cellphone,
for example, it may be smarter to treat
your car as a long-term asset that you
can feel comfortable owning and
driving for years, saving you thousands
of dollars in the long run.
CHOOSING WISELY
Choose a vehicle appropriate
for your long-term needs with the
expectation that you will drive it for
at least the next 10 years.
Smart shoppers will fi nd that
2- to 3-year-old used cars, trucks, SUVs
and vans are much less expensive to
purchase than their equivalent new
vehicles. Th e savings could easily reach
$10,000 or more, especially for a
premium-brand SUV.
Buyers who might be afraid of
getting a " lemon " when they buy a
used car should consider certifi ed
pre-owned vehicles. Th ese vehicles
are handpicked and meticulously
inspected before being sold, and they
are backed with a warranty very
similar to a new-car warranty.
THE LONG HAUL
Th e key to gaining a fi nancial
advantage from viewing your car as
an asset is owning it for a long time.
While the average car on the road today
is over 11 years old, typically, cars of
that age have had several owners.
Instead, your goal should be to
maintain your vehicle so it is useful to
you for at least a decade. Th is implies
preventative maintenance and, yes,
some repairs over time. But while
repairing a vehicle is more expensive
than it used to be, it is still far cheaper
than replacing the vehicle with a new
car, truck or SUV.
*
June 2024 * Cooperative Living * 21
PHOTO COURTESY BRANDPOINT MEDIA
http://www.co-opliving.com
Cooperative Living June 2024

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