Transportation costs can be a huge expense. A few years ago I purchased a brand new Honda Civic and three years later I sold it. I absolutely loved my car, but the monthly expense was definitely not worth the convenience. My boyfriend Nick and I live downtown in a high rise building, and therefore having a car was more of a luxury rather than a necessity. We don’t need a car for our everyday living, but it was definitely nice to have whenever we needed it to take a weekend vacation or visit our friends in the suburbs.
The cost of our car payments was a major expense, but what really adds up are all of the other monthly expenses that come with owning a car. Gas, parking, car insurance payments, and car washes can all add up to a lot of money each month.
Many people choose not to have a car or they choose to lease a car instead of buying a new vehicle because automobiles are a depreciating asset. If we finance our car loan very often we may find our self with negative car equity. This means that the current value of our car is worth less than the amount of money that we owe on our remaining loan. The real value of a car comes into play with the durability and longevity of our car. The longer our car lasts, the more money we are getting for the price that we paid.
According to MSN here are some cars that maintain their value over the long term:
1. The Honda Fit. It is small compact car that is relatively new but is quickly earning a reputation for being sustainable and reliable.
2. The Volkswagen Golf. This is also a smaller car which people can have for many years. The original cost may be higher than other compact cars but the higher purchase price is worth the durability into the future.
3. The Subaru Outback. This s crossover car that is not a full size sedan, but not quite an SUV. Subaru vehicles are known for their safety and durability during unfavourable weather conditions.
4. The Honda Accord. This is a midsize car that people may have for many years. I actually test drove the Honda Accord because it came with luxury options that the Honda Civic did not. However, it was way too big for my needs (and driving abilities).
5. The BMW 1 Series. The problem with buying luxury automobiles is that the cost can be way more expensive than most people can afford. Many people don’t see the value in buying a luxury car because the upfront cost is so high. However consumers have to consider the long term benefits when shopping for a new car.
6. The Lexus GS. Lexus is a company that is known for the comfort of their cars. The choice to buy a luxury car is definitely for preference rather than functionality. However if you can afford the price of a Lexus, the Lexus GS can definitely be a good long term investment.
How long have you had your car?
Photo by uggboy
Kristina Tahnyak
Tahnya is a Certified Financial Planner and former Investment Advisor turned marketing and communications professional She holds a degree from Concordia University, is debt free and currently works in the field of digital marketing.
I’ve had my 2007 Volkswagen Golf for a year. So far it has retained it’s value well, and I plan to drive it for at least five more years, at which point it’ll probably become a second car or we may sell it. I’m so happy to see my car is number 2 on the list!
I’ve had my Toyota pickup for 12 years and it still looks and drives great… no need whatsoever to consider a new vehichle. The money I’ve saved in having no car payments for the last 8 years is a big factor in my plan to retire at 42.
I picked up a 2004 Lexus LS430 in 2009 for a fraction of the cost of a new car. With 120,000 miles on it, it still drives and runs like a new car. The routine maintenance is a little pricey, but I found a local mechanic that left Lexus to open his own shop. It has been the best car purchase I have ever made.
I have a 2003 Honda Accord with almost 54,000 miles on it. I bought it in January for a steal. There are 3 other people who own Accords in my family and they are very reliable and cost efficient. They have 2004s and never had to do more than brakes and scheduled maintenance on them.
I’ve been driving my 2000 4Runner since she was new. Just celebrated her “birthday” last week! Runs like a champ!