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Questions and answers for saving money on transportation |
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By: Kyle Busch - Wednesday, September 27, 2006
With a soft economy and an uncertain stock market, more and more people are keeping an eye on spending, and they are interested in getting more for their money. Kyle Busch has over a quarter-century of experience saving money on transportation. He answers ten commonly asked questions about purchasing vehicles and saving money.
(Q) Why does it make sense to consider buying used vehicles?
(A) Transportation is a depreciating asset that loses value, especially during the first three years of ownership. Buying a 2 to 3 year-old used vehicle will provide about a one-third reduction in the cost. Additionally, the initial owner will have "test driven" the vehicle for the second owner.
(Q) What is a common error than many people make when buying transportation?
(A) A common error when buying transportation involves buyers not thoroughly identifying their transportation needs and then purchasing a vehicle that does not entirely meet such needs. For example, a buyer might choose a mid-size family sedan that satisfies many of his or her needs. However, six months after the purchase, the buyer realizes that another vehicle in the same category provides a softer ride, better fuel economy, etc. and would have better satisfied his or her driving needs.
(Q) After identifying transportation needs, what should buyers do next?
(A) It is worthwhile to visit a local public library to research which vehicle(s) will indeed satisfy specific transportation needs and then identify those that have good reliability ratings.
(Q) Is it best to buy a vehicle from a specific source?
(A) Each transportation source has certain advantages and disadvantages. However, the important thing to keep in mind is that a number of vehicle sources should be considered (i.e., private owners, rental car companies, company vehicles, off lease vehicles, new car dealerships, bank repossessions, the Internet). When buyers inform a vehicle source that they are also considering the other sources, better deals are usually obtained.
(Q) What if the owner is lying when answering questions about a vehicle?
(A) It is worthwhile to obtain as much information about a vehicle as possible, therefore, buyers should ask questions. The interior and exterior inspections, and vehicle test-drive help to verify the information provided by the owner.
(Q) How long should the vehicle test-drive take?
(A) It is worthwhile to test-drive a vehicle for a minimum of 20 minutes on two separate occasions. The test-drive should include a variety of roads that buyers will drive day-in and day-out.
(Q) Should buyers take a vehicle to a mechanic before making a purchase?
(A) A mechanic should confirm what buyers have concluded after they have inspected and test-driven a vehicle. Buyers should request that the vehicle be raised on a lift for the mechanic's inspection and that the mechanic test-drives the vehicle.
(Q) Of course buyers what to save money, but what protection do they have when purchasing a 2- to 3- year-old vehicle?
(A) Many vehicles have manufacturers' bumper-to-bumper warranties of three years-36,000 miles or four years 50,000 miles in addition to five years-60,000 miles on the drive train (i.e., engine and transmission). The warranties are transferable to buyers who purchase the vehicles. The warranties begin on the date that vehicles are first purchased from new car dealers. Buyers best interests are also served when they have performed research to identify vehicles that have favorable reliability ratings.
(Q) What is a long term benefit of saving one-third when buying vehicles?
(A) The average new vehicle costs about $16,000 to $19,000. Most 2- to 3- year-old vehicles will easily provide five or more years of trouble free driving. If buyers invest the savings (i.e., $5,000 to $7,000) and they are able to add $800 per year toward transportation, after a five-year period, they will have the money needed to purchase another 2- to 3- year-old vehicle without straining their budget.
Kyle Busch is the author of the book “Drive the Best for the Price …,”
and his car has been driven over 437,000 miles. His auto web site:
www.drivethebestbook.com accepts all car questions.
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