News for Jeep Bronx
Is Cash for Clunkers a good deal?
If you’re looking into the Cash for Clunkers rebate special, there are some things you should know.
When considering all of the bills that make up auto ownership you will most likely end up with one conclusion: a new car is not something you're able to afford. Even with cash incentives of $3500 to $4500, its almost always cheaper to fix that "clunker".
Lets think about this logically. A paid-for car only requires gas and insurance. You will obviously have routine maintenance such as oil changes. But in general, fixing your car is almost always the cheaper way to go.
Lets say you drive a ’98 Ford Taurus. Usually you get around 20mpg. Insurance is about $50 a month. Gas fills average once a week, around $160/month. Oil changes cost on average $30, with four a year (every 3 months or 3000 miles). At $120/year, that’s $10/month. It all adds up to about $220/month.
A new car, at the price of around $20,000, on average would cost at least $400 a month. Maybe only $125 for gas now, but insurance can also be double that of your old car, at around $100. When this all gets added up, the total cost is $625.
After doing this simple math, that new car smell doesn’t smell so sweet after all.
About the only true advantage to buying a new car is the mileage factor and the fact that it's falshy and new.
If you get right down to it, Cash for Clunkers is doing something right and is even doing us a favor. It’s making us think. You don’t have to be a calculus professor to know what a bargain is.
So drive your clunker and drive it with pride when thinking about all the money you saved.