SACRAMENTO, Calif. — The big Fourth of July weekend is just around the corner and your car is an important part of getting you to your vacation destination.
With new and used cars still painfully expensive, you’re probably wondering if it’s better to fix up your car than replace it. Well, it turns out Americans are keeping their cars longer than ever.
“Grab a rag, check your oil level, just go ahead and give it a wipe down, stick it back in, pull it out. You can actually see right there the oil level is kind of clear, which means it's in good shape and it's right at the mark where it's supposed to be,” said Elk Grove Firestone store manager, Patrick Ogeerally.
Doing regular checkups yourself could end up saving you thousands of dollars. New data shows the average age of cars in the U.S. is increasing to 12.5 years.
Supply chain problems sparked by the pandemic, plus high interest rates for car loans, have changed the car-buying market.
Kelley Blue Book says the average price of a new vehicle is more than $48,000. The average new vehicle loan interest rate is nearly 7%, which means you could be looking at a monthly payment of more than $700.
Though cheaper than a new car, used car prices are still historically high. Edmunds says the average used car sells for more than $28,000.
For some, it means a big-ticket purchase is out of the question. Repair shops are staying busy as a result.
“Lately we have been seeing a lot of cars come in on a tow truck because their belts are going bad and they're in there snapping, they are not checking the oil levels,” said Ogeerally. “The tune-ups are not being done regularly, so you want to always check your manufacturer's scheduled maintenance for the tune-up interval, the spark plugs, the filters, etc. Those are one of the items that the consumer is not really doing, as it should be done for manufacturer’s scheduled maintenance.”
Older cars might require major repairs, like changing shocks or struts. According to an estimate from Meineke, maintenance on a 10-year-old two-door vehicle with 110,000 miles would cost around $1,300, so you’ll want to compare the cost of the repair with the cost of the car payment.
“If you maintain the car, it'll take care of you,” said Ogeerally.
The bottom line? Being vigilant about your car’s care can save you money in the long run.
Keeping an older vehicle well-maintained gives you flexibility, meaning you can replace your car when you want to and not because you have to. Keep your car in good working order and don’t let the problems pile up.
