Making an Economic Decision
Alex Johnson
Buying a car can be a very tough decision. You have to look at your budget and have to decide what car you want to buy. Many cars look very appealing on the showroom floor. You are even able to take it out for a test drive to see if it meets your expectations. On the other hand, there's really no way to test drive a vehicle reliability. Cars are very expensive to own if you don’t choose the right one. Japanese car companies are known to produce the most reliable cars. They rarely have random parts break. Also, the cost to service a Toyota will be a much lower cost than a BMW. The lowest cost to own cars includes Toyota Prius, Toyota Camry, and Honda Ridgeline. BMW, Mercedes, and Audi are very famous for being luxury brand cars but they cost a lot to service.After the warranty runs out for these companies the depreciation of the car skyrockets. This causing many cars that are being sold to have it’s warranty about to end or it is already done. If you decide to lease a car you don’t have to deal with service fees but there are many terms that can still make you pay fees. With a leased car you have a set limit of miles you can drive and you have to keep the car very nice otherwise you are hit with fees. 
Doing research about certain models can save you a lot of time in the long run. Companies have models that are more reliable than other models. In some cases, there are models that are famous for a problem or certain thing to break. For examples, Subaru WRX STI’s are famous for having oil consumption problems which can be very problematic without being treated.You have to look and see if buying a brand new car is worth it. Buying a new car can be hard on the wallet. Not only do new cars cost a lot more than used cars, but they depreciate in value more quickly too. A vehicle loses the most value in the first few years of ownership. In just one year with an estimated loss value at around 19 percent. Not only will you be paying more up front but newer cars often have a higher insurance cost. Although it may seem like buying a used car is a lot better. You have no idea how the person treated the car before you bought the car. Also, it will be super tough to find a certain used car with the color and packages that you want.
Overall you have to look in the long run. If you are okay with spending a little more money at first and you plan on keeping the car for a while. It's a good investment to spend a little more in the beginning because you know that you are gonna take care of it. If you are more on a budget it's a pretty safe option to go with a used car with little miles on it. You may not get all the features and packages but you will be saving money on a reliable car. You have to look at the opportunity cost and see if it is worth it to fork out a bunch of money on a new car.
Works Cited
“Guide to Car Reliability | Owner Satisfaction.” Consumer Reports, www.consumerreports.org/cro/cars/guide_to_car_reliability/index.htm.
Naranjo, Michelle. “CR's Car Reliability Survey Reveals Shuffles in Brand and Model Rankings.”
Vincent , John M. “New Cars vs. Used Cars .” US News cars.usnews.com/cars-trucks/new-cars-vs-used-cars.
Wardlaw, Christian. “Consumer Reports: 10 Most Reliable Car Brands.” NY Daily News, NEW YORK DAILY NEWS, 25 Oct. 2016,
Zhang, Benjamin. “These Are the 18 Most Reliable Used Cars of 2017.” Business Insider, Business Insider, 24 Feb. 2017,
Overall good writing. I agree that you should spend a lot of time looking at cars before buying a car. A lot of people rush into and then regret it. Two big things to consider when buying a car are getting a good deal on the car and being able to afford the car. Many people think they can afford it and then they can't and then are forced to sell it. Make sure you take your time on buying a car. Research and ask many questions. When spending a good amount of money on a car make sure it's something you want and something you will love and care for.
ReplyDeleteGreat article! This is such a good topic because buying cars is a big thing for high schoolers. The choice between new and used is crucial, because you’re either buying new for more, or used with the risk of repairs down the road. You also have to consider gas mileage with cars too, because how many times you’d have to fill up can take a toll on your finances.
ReplyDeleteThis was a really interesting article to read. I do agree with you how people should be more careful when it comes to buying a car. You need to buy a car that will be better for you in the long run and not just a car that is good but yet expensive. When you get a more expensive car, the insurance will also go up too.
ReplyDeleteNice article and a current topic for most young people. I agree with you that making the best decision for yourself takes time and possibly a little extra money. It is good to look into cars that interest you, the problems that there may be in the long run, as well as immediate costs. I also know, though that a lot of people lease cars, since they know it would be better for them to pay for the car monthly, and keep the car for as long as the contract allows, and trade it in for another when the contract is up. I do agree with your main points, though there are other options for those who don’t know their long term plans yet, and they could just lease a car. Some companies allow for 12 or 18 month leases, but the longest minimum lease is 24 months (2 years) which may be helpful for those unsure of their short term and long term needs for a vehicle.
ReplyDeleteI agree that it takes a lot of research and more money but like you said, if you're willing to spend more money for the long run then you should. There are a ton of different cars out there to buy and almost everyone needs or drives a car in their life. It's good to pay more for a better car then spending less for something that breaks down and doesn't last.
ReplyDeleteIt is really good to inform people on what to look for when buying cars. Because most people do not know what to look for they just take the cars sell mans advice. Japanese cars are the best because they do and it is proven that they lost for many many years. You see some american cars running but they do not last that long. In my opinion american cars are terrible and I would go straight to a Japanese car. I like that you showed us the different prices of the cars too because that really helps as well.
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ReplyDeleteI agree that it's important to do research on cars before making a purchase since it's such a large investment. You bring up a good point that service costs are something to take into account as well for the long run. Although it may take a bit more time and energy than just buying based solely off of looks, being informed about what type of car you can afford can save you a lot of money down the road. (Kathryn Van Hulle)
ReplyDeleteAs we get older and have to purchase our own vehicles, I agree that researching and fully understanding how the car runs and what you will get out of the car will make an impact to your life and your investments. Your budget will affect the car you purchase. Similarly, with anything in life we have to determine if this purchase will be a smart economic decision and if we will benefit from that decision. Also, related to the studies of our current Economics unit, if we were to have a business we have to determine what the best option is due to the accounting profit and the economic profit. What is the opportunity cost is the question that we need to ask ourselves.
ReplyDeleteThis is a good topic to talk about as it relates to a lot of us, since most of us can drive and have cars. It also relates well to what we are learning about in Econ, how we have to weigh out the pros and cons of buying a new car vs used car and talk about opportunity costs of each. Business owners can look at this a different way, and determine total revenue and other aspects of economics to determine what they are better off selling.
DeleteThis is a good topic to discuss because most of us are able to drive and either have a car or are thinking of getting one. It is good to view the pros and cons of buying an old car or buying a new car. Since we have to weigh the pros and cons in Econ to find the satisfaction rate, marginal utility, opportunity cost, etc.
ReplyDeleteI think that as people of our age we can relate to this more, and because we can relate to it more, we need to be more skeptical and slow with buying a huge machine. It was a good addition to compare buying a new care from an old car, using the opportunity cost and clearly emphasizing the trade off of new vs. old creates new definition to each person's satisfaction. It is more beneficial to take time, look at the future with the consequences of your money too.
ReplyDeleteI agree that researching and having a good understanding of the car and what you want in a car can impact and will impact your life. Based on the article and what you said, I believe that it is more beneficial to go with the spend more money at first and keep the car for the long term. However for various people the opportunity cost for each option may sway them in another direction.
ReplyDeleteAndrew Retherford
ReplyDeleteHey Al! Thanks for letting me know what to look for when buying a car. I know you're very in to cars and I think that's really cool, it also allows me to trust you on this topic. I think it's interesting that there might be a high opportunity cost in not buying a Toyota, that could translate in to a very real cost when your Ford inevitably breaks down. Although mine has 200,000 miles on it and it's going strong. Unfortunately, it's value has depreciated significantly.
ReplyDeleteHEY AL! I liked your choice in topic as car buying is very relevant to most high school students. The choices between new and used really comes down to the lower price with the higher risk of used versus the shiny new, warrantied, high price tag of buying new. Car buying is more than just the initial price however, you have to pay for gas and obviously some choices in car will save you money on that front and some will cost you heavily. Further, the insurance where everything from your grades at school to the color of the car you chose is taken into account.
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