Eliot Silverman

Eliot Silverman
Owner

Wednesday, April 18, 2012

Be Paid $538 per month or $6256 to Keep Your Car In

Sounds too good to be true, but it is…. Let me explain.
A few months ago my niece sent me an article which stated the average car on the road is about 11 years old.  This is a record.  The article hinted that this was due to the recession.  It is NOT because of the recession!   
Let’s get started…. Growing up in the 70’s my parents, who were middle class, bought a new car when their existing car had about 60,000 miles.  This wasn’t because they wanted the new features, or they liked car payments, or they just wanted a new car. They bought a new car because they had to.  The existing car was falling apart. Inside and outside everything was breaking. 
Since then the quality of cars as skyrocketed.  What I call revolutionary, not evolutionary quality improvement.  I opened my business in 1986 and I saw first hand the quality improvements. 
My 1993 Oldsmobile, with over 230,000 miles, ran like new – until an Audi rear ended my car – it was parked.  My 1996 Oldsmobile similarly runs like new and all I ever do is maintenance.
Cars made after 1995 were designed to run like new, with just regular maintenance, for over 200,000 miles.  This isn’t pie-in-the-sky praying, this is for real.  I see it every day.  Cars with over 100,000 miles are the new normal, not unusual.  I believe in a few years, cars with over 200,000 miles will be the new normal as well.
So how do you get paid $538 per month or $6256 per year NOT to buy a car?
Insurance on a new car is at least $600 more than insurance on a 6 year old car.  Cars over 6 years old, on average, cost $500 per year to keep in like-new condition.  Since you save $600 on insurance, it is like the insurance company is paying you $100.00 per year NOT to buy a new car.
Also, the average car payment is $438 per month.  Keeping your car is like the auto companies paying you $438 per month, or $5256 per year to keep your car.  These are real savings, but you must maintain your car.

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