Almost all of the car dealerships in Houston highlight 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.
Car dealerships in Houston, TX will then use the “buffer” they have on the cost to fool you, making you feel privileged when they lessen it by a few thousand dollars, but if you finance the vehicle and have little or no credit, you will end up paying close to if not the entire sticker price.
Shopping for a car the proper way is to do so by breaking down the value in it’s total lifetime. You can do this by what you will be paying for to drive the car off the lot, then adding all of the maintenance fees you’ll pay over the next few years. For example, let’s say you buy a 2009 Ford Mustang GT with 20,000 miles for $13,750
You have to factor in the cost of repairs. We can estimate this based on the health of the car. Categories that measure a cars health 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 vehicle is in “okay” condition, then it’s very likely you would spend about $3000 in repairs over a 4 year period with out any unreasonable 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 bought 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 your money.
Vehicle shopping on cost alone 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 the best bang for your buck!
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