BUSINESS Should Your 'New' Auto Be a Used One?

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BUSINESS Should Your 'New' Auto Be a Used One? ^0 MAN( Hi:STKH HKMAI.I), Moniliiy. July :»). I<IK4 BUSINESS Bad satellite forces Players’ ‘Fiddler’ Hayes leads Should your ‘new’ auto be a used one? change In weather look even has a jogger U.S. effort page 2 ... page 11 ... aports, page 14 The 1' S. car on the road now is 7 4 years were not second or extra cars. A fat majority .said the new-car costs as intere.st, insurance taxes and fees. old. a liiKli for any pcacctitm- period, while new auto used make was the fam ily's primary rolling stock. Say you buy a $10,000 car and trade it annually. Its piiri base prices have soared IH.S perceni jnsi in the The used-car buyers often had as many as — or more yearly depreciation is about 30 percent or$3,000. But if past decade Yon need a new ear — but howcanyon.a Your than — the units of families buying new vehicles. you keep that car 10 years, then junk it, its yearly lypical American family, afford your nexl scl ol Money's Cenertilly. though, their incomes are only about depreciation is just $1,000 — the $10,000 purchase price wheels’’ three-quarters as high as the earnings of new-car divided by 10 years, a difference of about 20 cents a Sohilion a used car. And yon can save. too. by. Worth buyers. mile assuming 10,000 miles a year of driving. • Bnyinn a new ctir and dri\ inj> it until it is very Sylvia Porter Explains Hertz Chairman Frank A, Ol.son, a Maintenance costs do go up in later years, but these Fair tonight; Manchester, Conn. used: "variab le” upkeep outlays rarely rise faster than the veteran of nearly .80 years in the business, "Our cloudy Wednesday Tue^ay, July 31, 1984 • Or (very ciirefnlly) bnyins a used buKgy in the company research consistently shows that the "fixed ” costs fall. first phice. as two out of three I S motorists now used-car market plays a vital role in the nation's So, if you do decide on a used unit, buy with care, get — See page 2 Sjngle copy; 25<|: tr;idition;illy do. economy by making private automobiles available to as much in writing as possible. Negotiate the longest •An iistonndiitf' 17 4 million used ctn's were retiiiled sticker price of $9.179. And so were the running costs. the majority of families who need them but cannot warranty, ask about prior vehicle wreckage. MmhtBtn Mrralb ;it it record total of $8r).,'i billion last year, iiceordii.^ to Herein lies the basic explanation of the compari.sons. afford new-c;ir models.” Favor new-car dealers, who sell about 45 percent of the latest annual nsed etir survey by Hertz Corp. Depending on vehicle age and mileage, typical the used cars, too. They normally have newer, But since repairs climb as a car ages and rolls up These numlH'rs compare with only 8.9 million new used ca r purchase prices last year ranged from 21 lower-mileage models. units sold for just $819 billion in 1988 Wh;d these percent less expensive for a 1-year-old compact to 82 higher mileage, why are older cars — bought new or statistics boil dow n to is that the nation's used Cars percent cheaper for a 6-year-old, compared to a new used — usually less expensive to run than cars traded If very low price is your prime consideration, the Venezuela sold averaKed 4.8 years old. had run 49.9H9 miles and one. Model for model, the purchase price savings every year or two? "independent” used-car-only lot is your resort. And a Economy has full 40 percent of used cars are sold "direct,” with the cost $4 80'2. And these numbers take on real sen.se to averaged about 60 percent. Savings to own and run The answer lies in depreciation— the difference you when you compare them with an average of 2.8(1 used ears averaged about .88 percent. between what you pay for the car and what you later major rental companies selling their better cars at rescues retail, usually near airports. years. 29,09(1 miles and $8,602 for typical buggies in In ;i sample poll, some 75 percent of the used-car .sell it for. The typical U.S. car loses more of its value 1979 buyers said they bought a used car rather than a new in the early years than it does later. Depreciation — Final tip: Until interest rates turn down again, Hut the average used-ctir price of $4,802 in '88 was one precisely because the used c:ir was less expensive 3 which is based on purchase price — is the major invest your money in having your used car repaired. hostages steep decline stiH subslanlially below the average 1988 new auto — just what you would expect. And these used units expense on a new car. It also influences such other That's your most prudent choice. WILLEMSTAD, Curacao (UPI) WASHINGTON (UPI) - The Compost!* Inctoi of Manufacturers can’t generalize — Venezuelan commandos crept government’s index of leading out of the darkness and stormed a economic indicators fell a sleep 0.9 Leading Business hijacked airliner early today, percent in June, the first major EconoiTMC killing the two terrorists who had reverse in more than two years, Indicators In Brief threatened to blow it up and the Commerce Department said rescuing 79 people held hostage today. 165 Sun Belt car-buying habits diverse since Sunday. Seven of the 10 indicators con­ With a special team of U.S. store names tributed to the month’s decline and Bv Michellne Mavnard Texas, which has long been loyal to troops sent by President Reagan the other three were on the edge of 160- new manager standing by at 2:10 a m. EDT, the United Press International U.S,-made autos. Texas is the second deterioration as well. largest car market in the region and the Venezuelan security team The index is ba.sed on a variety of Donald Parker .Ir of DETROIT — Auto sales are growing Auto and Truck Sales in Ten nation’s No. 1 truck market. launched its assault as the wife of sensitive economic data that usu­ 155 hijacker Hilertant Dominique was Manchester has been rapidly in the lOstatcsthat makeupthe "T exas is a unique automotive ally are the first to register a shift Sun Belt States on the Rise being exchanged for a pregnant promoted to manager of nation's Sun Belt, but market analysts market,” said Ford analy.st Ray in economic trends. passenger. 150 are warning eager automakers not to ^ Total Industry ■ Sun Belt Windecker. “ Not only is it one of the The biggest negative factor for ,\l SiefferCs Appliances, After gunning down the air generalize when it comes to the most important car markets, it is the the month was weakness in orders 44.8 Hartford Road Percentage indicates portion of total industry sales pirates, the commandos hurried all important region. prime truck market in the entire for consumer goods. The next most 145 A tow n resident for six the 74 frightened passengers and Sun Belt states made up nearly country. Of the major market states, it important influence was an indica­ years, I’ arker has been five crewmen out through a rear one-third of the nation's auto sales in has the highest share of trucks relative tor registering only slightly less door and to a makeshift hospital with Sieffert's for 18 198.8, and four of every 10 trucks sold in to cars.” weakness in orders for factory 140 inside a hangar at the airport. months. He attended the country Were purchased by South­ HOWEVER. PENETRATION by equipment. The hijackers had threatened to Manchestlu’ Commu nil y ern consumers Import firms are foreign cars is growing in a state where The steep June drop was the the blow up the Aeropostal DC-9 unless 135 College and the Cniver- making strong inroads as Well in small Japanese cars were once des­ first firm signal of a slowing J J ASOND JF MAMJ they got $5 million and a sily of Connecticut, and growing urban and wealthy suburban cribed by an auto executive as economy since the index fell 0.7 1983 _________ 1984 areas. helicopter. he has 14 years of retail "something you drive around the ranch percent in March 1982. It is the first The daring rescue by Venezue­ For industry purposes, the Sun Belt house.” slippage of any kind since a scant sales experience. lan special police forces came ECONOMIC INDICATORS states are California. Arizona. New Import sales took just 167 percent of 0.1 percent drop in August 1982. He and his w ife. Terri, after the hijackers broke off Mexico. Texas, Louisiana. Mississippi. the Texas market in 1978 but now own Slight declines in the index have . dropped in June have two children. negotiations late Monday and Alabama. Georgia. South Carolina and 23.7 percent. been reported recently — a 0.1 Donny HI. 6. and Hobby. ordered the pilot to fire up the Florida. "There’s a definite import trend percent drop in May, for example plane's engines, an airport spokes­ 5. Donald Parker Jr "This is the 'Golden Crescent' of the there, and sales could soon be increas­ — but have been revised upward moving up 16.9 percent since man said. automotive market.” said Ford Motor ing faster than in the rest of the when later data came in.
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