Most of us have heard the news and read the headlines that a recession is on the way, and for some of us it feels like it is already here! I am not an advocate of not spending, we all know if everyone did that, the economy would come to a grinding halt. What I do believe in is making wise spending choices. The second biggest investment for most families is their vehicles. I continually see people make poor decisions when it comes to their automobile. The most foolish mistake I see people make is trading in their vehicle and buying a new one, this is lose, lose, lose. Number one, the prices on new vehicles are expensive, especially if you want any kind of quality. Car payments run from the high three hundreds a month, to five hundred for a decent ride, that is a lot of money over the next five or six years, and at the end of it, you’ll be lucky if that car is worth ¼ of what you paid for it originally. Number two is the trade in, car dealers have to make money on your trade in, so they will usually pay two to three thousand dollars less than you could sell it private party for. I know it can be a bit of a pain to sell private party, but with the advent of the internet and car lots that you can consign on, it is worth the thousand of dollars you will recoup. Number three is depreciation, new cars lose value the day you drive them off the lot, if you have to buy a vehicle, find one a couple years old that has been well taken care of and you will not suffer the depreciation as bad as the original purchaser.
Don’t forget that dealer makes money on the financing, the “extended warranties” and all the other “goodies” when you buy a new car. There are also added expenses of higher sales taxes and registration fees on new cars. Just because that car is new, doesn’t mean it won’t also have maintenance costs.
For most people the wisest investment is keeping the vehicle you have, and that is what I really want to talk to you about. I have read that the average person spends about $750.00 per year on repairs and maintenance on their vehicle, owning two auto repair shops; I can say that is pretty accurate. What I suggest to my clients is to budget $75.00 to $150.00 per month to take car of their vehicle, some will need more if they drive a lot or have a European vehicle, but no matter what, this will always trump a car payment. A separate bank account is the best way to make sure the money is available when you need it. I know this takes self discipline, but all the people I know that have any kind of success are people with self discipline, and they know that success is not driving the newest vehicle every couple of years, but having the money to buy what the need in a lean time. America’s economy will probably get worse before it gets better and saving three to four hundred dollars a month on the household income can go along way!
I no longer suggest people to work on their own vehicles to save money. Yes, getting your car repaired by a professional is expensive but the return on that investment is well worth it. Allow me to explain. As an ASE certified Master Technician, (which the National Automotive Parts Association states that an ASE Master Technician certification is equivalent to a Master’s Degree) I know that when I am looking on a vehicle, I can see things that you cannot see, or a quick lube tech cannot see, and I know were to get the parts that are going to last the longest on your vehicle. (most of those are not sold at your local discount auto part stores).
Picking the correct place to service you vehicle will greatly impact the life of your vehicle and how much you will pay in the long run for your vehicle (cost per mile).
I want to share some inside secrets to picking a facility to take care of your vehicle.
To you people who insist on taking your vehicle to the “New Car Dealer” (which is 27% of American Drivers) you may not be getting what you think you are. Dealership service departments should be used for one thing and one thing only- warranty repairs. Dealerships advertise “Factory trained technicians and OEM parts” to lead you to believe they are the only ones who know your vehicle, that is simply not true. (Which is the number one reason people choose the dealer). Dealerships hire from the exact same pool of technicians as independent shops do, and most will only hire the less experienced techs to keep their profit margin high, You will be lucky to find one “factory trained technician” in most dealerships and even more lucky if they work on your vehicle. There are great technicians, who work at dealerships across America, but there are equally qualified technicians working at independent shops, and you will get better prices and service. OEM parts are not always the best choice for a repair; the high quality parts that are available to independent shops have been re-engineered to be a better part than the original. Dealerships view their service departments as “profit centers” and their goal is to extract as much money from you as possible every time you are there. I have seen more than once dealerships selling work that is not needed, or had just been done.
The second worse place to get your vehicle serviced is a “mass merchandiser type of place and chain brake or lube places” These businesses are famous for the “bait and switch” schemes, four tires for $99.00, all four brakes for $99.98, oil changes for $9.98 coolant flushes for $49.95 etc. We have all seen the ads, and some of you have fallen for the scheme. (I have yet to meet someone who actually got the “advertised price” for a brake job.) These outfits are trained to “sell, sell, and sell some more”, they use cheap parts and cheap labor, and have the reputation in the industry for “overselling and under delivering”. We that work at or own a true professional repair shop call these guys “hope merchants” (I hope they don’t find more wrong with my car, I hope I can get this coupon price, I hope my wheels don’t fall off again).
Where does that leave you? I am glad you asked. The reason there are close to 70,000 independent shops in America is because guys like me got tired of seeing the general public being ripped of by Dealerships and mass merchandisers, and we decided that we could do better job and do it with honesty and integrity. Most independent shop owners I know are the most honest hard working people you will ever meet (unfortunately I know of a few crooks to). My suggestion is that you find an independent repair shop or independent specialty shop, build a relationship with the owner or the manager, and make sure that they employ ASE certified technicians. Make sure you bring your vehicle to them for every service and that they are willing to take time to educate you on proper maintenance for your vehicle. It may not be convenient to wait an hour for an oil change, but you’ll get someone who knows your car and can tell you what it may need now and in the future. The best shops will be clean and have friendly waiting room, they usually have a free shuttle, financing, and of course have a friendly staff. Make sure they have at least a 12 month, 12,000 mile warranty. Don’t ask them to install your own parts, and if you find a shop you trust, tell your friends, most independent shops live on referrals.
Don’t be afraid to ask them if they work on your make and model, not every shop is set up with the diagnostic equipment for all vehicles.
As an independent shop owner you may see me a biased, and I am, because I have worked for dealers and independents, I have seen the best and the worst technicians in the business, and I have seen what happens behind all the curtains. I can tell you the best value for your vehicle repair dollars will be at a reputable independent shop. I have clients that have taken my advise and have driven hundreds of thousands of reliable miles and are still going strong. (They are some of the wise people I was referring to).
Writing from Aspen Auto Clinic
You can E-mail me at greg@aspenautoclinic.com
