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.
"Many personal finance experts define
automobiles as expense items. 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."
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, ssmith@pacificcommunicationsgroup.com,
https://www.mercuryinsurance.com/
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SOURCE Mercury Insurance