Do I fix my Subaru or replace it with a new one…..comparison
Often we come to a crossroads where a large expense occurs with our Subaru and the decision on whether to re-invest into the car vs replacing the car is thrust upon us. One of the first questions we ask a customer facing this dilemma is do they still enjoy the car and is it meeting all of their needs. If the answer is yes to both questions then it becomes a numbers comparison. Subarus, as well as other cars, are getting more and more expensive and re-investing into your current Subaru can actually make sense and save you thousands in the long run. In my cost of ownership analysis I compared a brand new entry level 2018 Subaru Impreza to a 2005 Subaru Outback. I also assumed no money down an a 0% interest 4 year loan. After researching some numbers it’s pretty clear which scenario is more financially beneficial. Here are my findings below:
|Cost of Ownershp over 4 Years|
|Own Outright||New Purchase|
|2005 Subaru Outback||2018 Subaru Impreza|
|Purchase price incl tax/lic||$0.00 no monthly pmt.||$22,360 ($466 monthly pmt. 0 down 0% interest)|
|4yrs Lic/Reg/RTA est.||$92||$0|
|Insurance(no comp/coll on 05)||$575||$750|
|Estimated worst case||$2,000||$500|
|on 2005 model||$2,000||$800|
|Depriciation over 4 yrs||$3,000||$11,470|
|based on Edmonds.com|
|Total Cost of Ownership||$21,645.00||$46,500|
I tried to be agressive on the expense side for the 2005 Outback but in reality it would be out of the norm for one of our customers to spend $8000 in repairs and maintenance over 4 years even if it needed head gaskets during that time.
Now I realize that not all decisions are based on financial reasons. Having a shiney new car is nice without a doubt as well as all of the new safety and technology that comes along with it. I just wanted to make sure when you make the decision to repair or replace that you have looked at the complete picture so no matter what you decide you are happy with your decision.