What Car Should I Buy?

Being in the automobile repair business I am often asked for recommendations for what car to buy. I would like to share some thoughts and information with you, but you may be surprised by the end.

In our experience Toyota/Lexus have the least dollars spent on repair and maintenance. Toyota maintenance and repair expense is 23% lower than the average for all cars. Honda/Acura comes in second being 17% lower. After that, all of the vehicles are very close to the average. There is no manufacturer who is more than 7% above the average.

There will probably be very few people surprised by Toyota’s and Honda’s performance. But stop and consider what I have said. I have not said that Toyota’s never break or never need maintenance. Look at the size of the service departments of the Toyota and Honda dealerships – they are huge. What are they working on? Toyota’s and Honda’s. These vehicles need less repair and maintenance, but they still do need repair and maintenance.

So the next consideration in what vehicle you should buy is the purchase price of the vehicle. Toyota and Honda generally have the highest purchase price of vehicles in any given category. They also have the highest resale value, or least dollars lost to depreciation, in any vehicle category.

How long do you keep your vehicles? If you buy new every three years and sell at 80,000 miles your lowest cost of ownership will probably be with Toyota or Honda. Your total cost of ownership is purchase price minus trade-in value plus repairs, gasoline and insurance. But replacing any vehicle every three years is still very expensive. You will generally loose half of the initial purchase price in the first three years. Most financial advisors recommend keeping a car for 10 years.

If you buy late model pre-owned vehicles your lowest total cost might be with a domestic vehicle. The initial depreciation is greater. You can generally buy a four year old domestic with 50,000 miles for the same price as a 10 year old Toyota/Honda with 140,000 miles or more. Buying any vehicle with 140,000 miles is buying during the high repair cost period of its life. But considering domestic versus Toyota/Honda if both vehicles have over 100,000 miles, your costs will be lower with Toyota/Honda.

The last question, but perhaps the most important, is what do you want to drive? What feels most comfortable to your body and driving habits? What vehicle looks the best to you? You are spending a lot of money. How you feel about that expense is an important consideration. If you like your vehicle you are more likely to keep it in good condition – both cosmetically and mechanically. Keeping up with maintenance and repairs has been shown to be the most cost effective way of extending the useful life of a vehicle.

According to the car finance industry, the average car payment has risen to $550 per month. Two years ago I considered trading in my 1999 Dodge Durango, but decided not to. In that time I have avoided $13,000 in typical car payment expense. I am once again considering replacing my vehicle. I will probably buy a 2 year old domestic SUV. Not because it has the lowest repair needs but because it suits my needs and desires. But by buying a low mileage pre-owned vehicle I will save $5,000 to $10,000.

Brian Klaubert has written for the Neighborhood News for five years, and owns Christian Brothers Automotive – Hamilton Mill on Braselton Hwy in Dacula. They have been voted Best of Gwinnett in both the Gwinnett Daily Post and Gwinnett Magazine.