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| Written by Joseph James (1982) |
Just what kind of car guy am I?
This is an excellent book that lays out the economic and practical reasons to hold onto a car for a long period of time. It stresses the need to maintain the car properly, because you are making an investment in providing yourself with long term, reliable transportation.
Your car is not seen as something that will hold it's intrinsic value as an object, as cars are subject to brutal depreciation. The actual investment is made viewing the car as a means of reliable, value cost transportation.
The car itself might be worth relatively little as an automobile. The value is in what it can provide you: a realistic alternative to a new car purchase.
You do not have to be a car enthusiast to subscribe to this philosophy.
You do not need to currently own a "desirable, special, or collectible" car.
But it doesn't preclude it.
In fact, the author makes a point that owning a special car is a very good reason for holding on to it.
One of the reasons that the author gives for making the decision to keep your current car, is if it is better than the cars that are currently available.
This book was published in 1982 deep into "the malaise era." This was the tail end of the period that Detroit, as well as other manufacturers, had been wrestling with oftentimes contradictory demands. They had to meet governmental mandates for improvements in cleaner running, more fuel efficient, and safer passenger cars. In addition to that, American manufacturers were in the process of producing "downsized" versions of their various full and midsized models. On top of this, prices were rising higher and higher every year, leading many consumers to think that they were having to pay more and more for much less.
Automotive journalists, car enthusiasts and the general public were asking themselves, "Are we ever going to be able to buy good cars again?
Looking back from Today we can answer that question as a positive, Yes!
Today's cars are great, but they are more expensive than ever.
The author goes into a detailed analysis of the financial aspects of car keeping. Popular thinking among non mechanically minded car owners is that a car eventually gets too old to economically run. It's better to dump the car before the some big failure occurs that strands you on the side of the road and empties your wallet. The author debunks these myths.
Many folks believe that it is important to trade up to a new car that gets better gas mileage. Somehow this will save them money. Yes you will save some money at each fill up, but at what cost? Another four years of higher car payments! It takes a lot of time and driving to amortize the savings in fuel,
The basic premise is that it is never better financially to trade in your existing car for a new model as opposed to keeping your current vehicle.
That is because the highest cost in car ownership is not maintenance, service, repair or fuel costs. It is depreciation, and that is "front loaded." That new car loses almost twenty percent of it's value the moment it rolls off the lot. Depreciation is the highest during the first three years, when a car can lose up to a third of it's value. It was once common to trade in your car every three or four years right when the hit from depreciation is the highest, instead of spreading out the loss over five years or more.
Combine that with the minimal trade in allowance that the dealer provides, it's no wonder that so many people dread the purchase of a new car. It's a terrible, money losing experience.
The author does not try to persuade you that you are going to save money overall because you are going to neglect maintenance or repairs to your current car. In fact, you are likely to spend more money on the car as opposed to "drive it until it dies" mentality followed by many owners of older cars.
You are also not going to neglect the appearance or interior areas of your car, either.
You are aiming to maintain your car at a presentable level that will not cause you (or your significant other) embarrassment for driving a raggedy, run down vehicle.
As he put it "This is car keeping, not wreck keeping!"
This is not a "Do it Yourself" manual. You don't have to have any mechanical knowledge or interest. He doesn't expect the reader to spend his weekends under the hood or crawling under the car spinning wrenches. He goes into great detail about searching for a good, honest mechanic who will be your partner in car keeping. Good mechanics are hard to find, and finding one that has the right attitude to assist you in your plan is a major achievement.
He makes a special point in asking how you would feel about driving an older model car. Would you feel embarrassed ? Is the kind of car you drive an important display for your perceived (or hoped for) social status?
Would this affect your position at your job, career, or the within the social circles that you circulate ?
This is not just a matter of personal vanity. For many in sales or management positions, public perception is an important element in their success. Sometimes the right image is just part of the cost of doing business.
If however, you are free of those constraints or you may feel secure enough in your social position that you have decided that a new car in the driveway is not the best or most important indicator of status. Perhaps a vacation time share, a European vacation, home improvements, or a college education for your children might be money better spent.
Or maybe just a little extra money put away for retirement!
Of course I focused on the aspect of the book where you decide to keep a "special" car. It might have been purchased new, or by taking advantage of the massive depreciation that most cars suffer during the first 3-5 years. This can often bring the cost of acquisition down to those who were not born wealthy.
So you might buy a fancy luxury, sports or performance car. Or a vintage model that costs much less than the current models in that manufacturer's line up. Think used Mercedes, Porsche, Jaguar, Lexus, or maybe a large truck or SUV. Corvettes and Mustangs. Used F150s and Expeditions can be bought at bargain prices.
This book is concerned with long range thinking, the savings that you are going to achieve come from amortizing your expenses and getting the most usage from your expenditures.
This also requires a lot of discipline, and a commitment to keeping your current car. There is no point in buying a new battery proactively, tires, or having your car repainted if you are going to sell or trade it in the near future. Especially if the trade is an unplanned spur of the moment, emotionally driven choice. How many of us have traded in our cars with a full tank of gas, because we went out looking at new cars on a Sunday morning?
For enthusiasts, one great obstacle is overcoming the desire for the "next big thing."
I know that I spend a lot of time surfing the net looking for interesting cars that catch my interest. Which means almost anything built in the last fifty years!
Since I'm known as the car guy at work, I occasionally get asked by one of my young coworkers about a good car buying strategy.
So I will share my philosophy with all of you eager (?) readers.
Cars Today are the best built, longest lasting, safest and most economical models--- ever.
They routinely rack up 200,000 miles without requiring major engine repair. Everyone knows someone who has an old Honda Accord or Camry that has exceeded that mileage and is still in constant use.
If you were to buy a brand new car you could anticipate 100,000 miles or ten years of reliable service.
You would also be the person that absorbs the initial cost of depreciation, however if you were to hold onto the car for a decade you will amortize the impact of this burden.
Now if you were to buy a three year old car you could avoid that massive depreciation, pick up a car with some of it's original warranty, and still get years of service at an even better price.
A well kept fairly new car can easily maintain it's appearance for many, many, years. It can retain a very satisfying ambiance. It will easily maintain pride of ownership. Of course it's much easier to preserve something instead of trying to restore it.
That is the lesson of the Car Keepers Guide.
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