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Tuesday, August 14, 2007 

That Car You Bought Likely Costs 2 To 4 Times What You Paid

The "real" cost of your car goes far beyond the purchase price. Therefore, should you go to the extra expense of having a used car professionally inspected before buying? Well, a look at the numbers indicate that this decision is a no-brainer. And it's an absolute, "YES!".

Many people don't bother with this because it adds an additional step to the already unpleasant task of car buying. Instead, they look over the car the best they can, or have a friend who knows a bit more do it. They then drive the car and everything seems in order. However, instead of purchasing the vehicle at this point, I would strongly suggest that this car has only passed the first test. Now it's time to have your opinion verified by a pro.

Here's why:

It's likely no surprise to you that the overall cost of a car is usually the second largest in the family budget, being surpassed only by housing.

According to AAA (American Automobile Association), the average total cost per mile for a vehicle driven 15,000 miles per year is $.522 (52.2cents), or $7,830 for the year. This total cost of car ownership includes such expenses as gas and oil, insurance, maintenance, depreciation, and financing.

Remember, this is an "average". For example, the cost for a small sedan like a Ford Focus or Honda Civic is 41.4 cents. A medium sedan such as a Honda Accord or Toyota Camry is 52.5 cents. The cost for a large sedan like a Chrysler 300 or Nissan Maxima is 62.5 cents. A four-wheel-drive SUV has a cost of 66.6 cents per mile while a minivan has a cost of 57.6 cents.

And this study by AAA was done in 2006 when they used the price of $2.256/gallon for gasoline. Obviously, gas costs much more today so these numbers are actually understated.

But, for the sake of the point, let's use the average cost of $7,830 per year. If someone keeps their vehicle for four years, the total cost would be $31,320. Now that's a big investment.

Wouldn't it make sense to spend an extra $100 to $150 to have the vehicle inspected prior to taking on such a commitment? You don't want to add to this already large expense by purchasing a vehicle that may look good, but actually has some hidden problems indicative of potentially expensive repairs down the road.

True, bringing a car to your trusted mechanic can be a nuisance. But it is still well worth your time.

However, if you want to avoid this errand or the car owner is hesitant to let you take the vehicle, there are now vast networks of car inspection companies that will go right to the Dealership or the current owner's home to do the inspection. They usually can complete the job with 24 hours, and sometimes the very same day.

Just go to your favorite search engine and search for "car inspection service" or "auto inspection service" (without the quotes).

Joshua Rose Is an Auto Broker at Auto Broker Magic. For information on negotiating a great deal on a used car, please see his tips at Used Car Buying Advice.

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