Maintaining Present Vehicle May Make Financial Sense
by The Car Care Council
Although you may want to get rid of your present vehicle in favor of a new car, taking
better care of your current set of wheels may make much more sense in the long run—helping
you achieve a goal of financial freedom.
"We advise our clients that if they want a 10 percent increase on their investments every
year, they need to cut down on their expenses," said Terry Mulcahy, vice president of
investments for R.W. Baird. "A new automobile is, for most people, their second biggest
investment next to a home, so a great way to save money and increase financial assets is
to hang onto their current vehicle rather than buy a new one every few years. Budgeting
for and doing preventive maintenance on your car is one of the best ways to cut your costs
and keep your car."
The Car Care Council estimates that more than $60 billion in vehicle maintenance and repair
is not performed every year, evidence that there is considerably more that consumers should
be doing to protect their automotive investments.
"Whether it's an oil change, replacing brakes or new belts and hoses, that periodic repair
bill is a drop in the bucket compared to monthly payments on a new car," said Rich White,
executive director of the Car Care Council. "The bottom line is that a properly maintained
vehicle is safe, more dependable, more fuel efficient, less polluting and more valuable. The
smartest way to get a solid return on investment is to keep your car through what we call
the 'Cinderella Era.' It's that period of time after the payoff when your car is still in
great shape and needs only modest repairs."
Figures from Runzheimer International, a management consulting firm that measures travel
and living costs, confirms the Council's claims. Recent figures from a Runzheimer study
show that trading a vehicle every eight years instead of every four can save more than
$2,481.75 a year after the payoff. That includes repairs and maintenance, license,
registration, taxes and insurance.
Auto technicians say the key to keeping vehicles running well-today and down the road-is
routine maintenance. Yet many drivers tend to stall when it comes to keeping up with some
everyday auto-basics. A recent survey by the Car Care Council found:
- 27 percent of cars had low or dirty engine oil.
- 23 percent had low tire pressure.
- 26 percent had inadequate cooling protection.
- 21 percent needed new belts.
- 17 percent had dirty air filters.
- 11 percent had low or contaminated brake fluid.
The Car Care Council is the source of information for the "Be Car Care Aware" consumer
education campaign promoting the benefits of regular vehicle care, maintenance and repair
to consumers. For more information about routine vehicle maintenance and how to "Be Car
Care Aware," visit www.carcare.org. For your convenience, the Car Care Council developed
a Service Interval Schedule to help you keep track of regular maintenance. Most of the
checks and services described here can be done at little or no cost. Best of all, they
are quick and easy to do.
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