Simple Ways To Understand Car Value vs. Price

By David Ogten

Many car dealerships in Houston push the price of a car as the selling point of a particular car. They strategically put stickers of the Manufacture Suggested Retail Price (MSRP) on the car so it can seem to be estimated more than what they will sell it for. Right off the bat the price of the car can be decreased by a few hundred dollars because it's just a suggested price that the manufacturer tells the car dealership in order for them to make a substantial amount of profit.

A lot of the car dealerships in Houston, will then use the "cushion" they have on the price to make you think you are special when they drop it by a few thousand dollars.

The best way to shop for a car is to calculate the value of what it's worth over it's lifespan. This is done easily by calculating the price you pay for the car today, then adding all of the maintenance costs you'll pay over the next few years. For example, let's say you buy a 2002 Honda Civic ES with 80,000 miles for $6,500.

It's important that you assess the cost of repairs. You can get this estimate based on the overall health of the car. Categories that measure a car's health are: engine components (such as the motor, radiator, alternator, air filter, battery, etc); tires, exterior components like windshield wipers, headlights, taillights, suspension, brakes. It's also always good to get a second opinion and use resources like and to check a vehicle history report.

It's very likely you would spend about $3000 in repairs over a 4 year period with out any unreasonable factors increasing the chance of breakdown if the vehicle is in "okay" condition, then. That means the value of the car is only $3,500 over a four year period. To clarify, if you bought a car for $9,000 and it had little to no repairs in a Four year period, then you are getting a better deal on your car.

The main reason why car customers are unhappy with their purchase, is when they shop with only price as the consideration of the deal. If you learn about value and cost of repairs, even researching the types of cars that hold their worth over time, then you too will be a satisfied car shopper!

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