| Simple Ways To Understand Car Value Vs. Price |
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| Written by David Ogten |
| Thursday, 30 September 2010 13:05 |
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Almost all of the car dealerships in Houston push the price of a car as the selling point of a particular vehicle. The gimmick is simple, they place the Manufacture Suggested Retail Price (MSRP) on the window of the car to make it seem more expensive than it is. The MSRP is a suggestion but also a deception, be careful when a dealer claims he's saving you money by showing you this price.
Almost all of the car dealerships in Houston push the price of a car as the selling point of a particular car. The gimmick is simple, they place the Manufacture Suggested Retail Price (MSRP) on the window of the car to make it seem more expensive than it is. The MSRP is a suggestion but also a deception, be careful when a dealer claims he's saving you money by showing you this price. A lot of the car dealerships in Houston, will then use the "cushion" they have on the price to make you think you are special when they lower it by a few thousand dollars. The right way to shop for a car is to breakdown the value of what it's worth over it's lifespan. This is done simply by calculating the price you pay for the car now, then adding all of the maintenance costs you'll pay over the next few years. For example, let's say you buy a 2002 Honda Civic ES with 80,000 miles for $6,500. You have to factor in the cost of repairs. We can estimate this based on the condition of the car. Categories that measure a cars condition are: engine components (such as the motor, radiator, alternator, air filter, battery, etc); tires, exterior components like windshield wipers, headlights, taillights, suspension, brakes. If the car is in "okay" condition, then it's very likely you would spend about $3000 in repairs over a 4 year period with out any unpredictable factors increasing the chance of breakdown. That means the value of the car is only $3,500 over a four year period. To simplify, if you buy a car for $9,000 and it had little to no repairs in a 4 year period, you would be getting a better investment for you money. Car shopping on price by itself is the single biggest problem with unsatisfied car customers. When you shop with value in mind, you will have a better perception of what you will really be spending and it will help you determine whether you are getting your money's worth! DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. If you are looking for more info on Car Accident Dallas then you have come to the right place. |