Mercury's Experts Say Viewing your Car as an Investment Can Improve your Finances
LOS ANGELES, March 8, 2024 /PRNewswire-PRWeb/ -- In these inflationary times, the cost of owning a car seems to increase on a daily basis. The price of buying a car is growing, and so is the cost of operating one. We all want personal transportation and the joy of car ownership, but the statistics are challenging.
Simply purchasing a car is more costly than ever. The prices of new and used vehicles skyrocketed in the aftermath of the COVID-19 pandem- ic. According to J.D. Power, new-vehicle transaction prices shot up 13% in 2021 and then surged up another 13% in 2022. The increases moderated a bit last year, but prices haven't fallen.
The prices of used vehicles have escalated even more rapidly over the last several years as consumers who couldn't find an affordable new car have turned to the used car market. Again, the prices have moderated in 2023, but used vehicle prices are up at least 20% versus their level in 2021.
At the same time, the cost of maintenance and replacement parts has also zoomed up. So has the hourly rate of auto repair labor. Though fuel prices have dropped from their all-time high of a couple of years ago, they are still inflated versus their level when the decade began.
The economic news regarding transportation costs is challenging. Still, the auto experts at Mercury Insurance have a suggestion that could change the way you look at these costs — and save you money in the process. The suggestion is to treat your vehicle as an investment, not an expense.
"Many personal finance experts define automobiles as expense items," said Justin Yoshizawa, Director, Product Management State. "While that is generally true, viewing your vehicle as a long-term asset just might change the way you purchase and maintain your cars. And it will probably save you money."
Viewing your vehicle as a long-term asset implies that you will purchase it differently, finance it differently and maintain it differently. Rather than seeing your vehicle as a piece of equipment that needs to be replaced frequently, like a cellphone, for example, it may be smarter to treat your car as a long-term asset that you can feel comfortable owning and driving for years, which could save you thousands of dollars.
Mercury offers these suggestions for viewing your car as an investment:
- Buy the right car. Choose a vehicle appropriate for your long-term needs with the expectation that you will drive it for the next 10 years. With that in mind, the car you purchase should offer a low cost to own based on good dependability and reliability, low maintenance and repair costs, good fuel economy, and low cost to insure. (Mercury Insurance offers advice on the least expensive sedans, trucks and SUVs, and electric vehicles to insure).
"The days when new vehicles would rust out and wear out in just a few years are over," Mr. Yoshizawa said. "Today's new and late-model used vehicles have long, useful lives ahead of them. Buying the right vehicle and continuing to maintain and repair it as needed is the best way to assure yourself the lowest personal transportation costs."
About Mercury Insurance
Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier predominantly offering personal auto, homeowners and renters insurance through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury writes other lines of insurance in various states, including commercial, business owners and business auto, landlord, home-sharing, ride-hailing and mechanical protection insurance.
Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service. Mercury has earned "A" ratings from A.M. Best and Fitch, as well as "Best Auto Insurance Company" designations from Forbes and Insure.com. For more information visit Mercury Insurance or follow the company on Twitter or Facebook.
Media Contact
Shane Smith, Mercury Insurance, (424) 903-3665, [email protected], https://www.mercuryinsurance.com/
SOURCE Mercury Insurance
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