Posted August 18, 2015
Back-to-school deals and offers make buying a new car tempting for many people in Fountain, but even with price cuts and discounts a new car purchase will be more expensive than the maintenance to keep your current car running. Here’s why:
- More car payments – Most car loans are paid off in around 5 years. If you keep your car instead of buying a new one, you’re payment free for years 5-10!
- Higher insurance costs – Newer vehicles come with higher premiums for insurance. If your premium is more than 10% of the car’s value, you can drop collision and comprehensive coverage (and pocket that extra cash!)
- Taxes – Sales tax makes up for 8% of the cost of a new vehicle in Colorado – a $15,000 vehicle comes with roughly $1,150 in sales taxes. But you don’t have to spend that extra cash to keep your current car!
- Fees – Registration fees are higher for new cars. License fees, sales tax, ownership tax all factor into your registration fee. Initial payment is often significantly higher than renewing your registration. On top of the dollar value, you’ll have the hassle of waiting in line and gathering all the paperwork – your title, proof of ID, VIN verification, emissions inspection form, and good old fashioned checkbook.
- Cost of buying a car – Let’s not overlook the obvious… if you’re buying a new vehicle, you’ll need money for the down payment. Instead, you could put that money in a savings account, or invest and accrue interest in your pocket instead of the sellers.
Before you are lured in with dealer offers and shiny new cars, think about the extra cost (above the price tag) of the new vehicle. For more advice or to schedule your next appointment, call us at 719.382.5691.
Categories: Auto Repair