Thank you so much for your offer to help me purchase a new car. As you know, I don’t have a lot of money to spend, so I have been researching cars that are known for their good gas mileage. I also realize that you are concerned about my car requiring too much expensive upkeep, so I have considered cost and frequency of maintenance during my research. For fuel costs, ConsumerReports. org (2008) reports that the money spent over the years in filling up the gas tank can add up. This is of particular concern to me as gas prices have risen in the last few years.
Though Busse et al. (2009) find that the overall cost increase for fuel affects used cars more than new cars, their research study was focused more on the car industry, not on the individual consumer. Therefore, I still find that overall, purchasing a used car is my best option at this time because I do not have a lot of money available to me and also because new cars depreciate significantly in value as soon as you drive them off the lot (Car Buying Tips 2009). Samarins. com (2010) has extensively analyzed data from a government agency (fueleconomy.
gov) in order to determine which cars are the most fuel-efficient: Toyota Echo/Yaris, Toyota Corolla, Honda Civic, Pontiac Vibe, Toyota Matrix, Toyota Camry, Honda Accord, Toyota RAV4, Honda CR-V, and Subaru Forester. Of these I am not interested in the Matrix, RAV4, CR-V, or Forester because they are either wagons or SUVs. From my research, I have discovered that you are right to encourage me to search for cars that require less maintenance and repair. For instance, ConsumerReports. org (2008) has found that these costs can total 4% of the cost of owning a car.
The highly reputable J. D. Power and Associates (2010) have found both Toyota and Honda to be brands of cars that are consistently among the best or better than most in terms of four characteristics: overall dependability, powertrain dependability, body and interior dependability, and feature and accessory dependability. From the combination of these two considerations, I narrowed my choice down to the following: Toyota Echo/Yaris, Toyota Corolla, Honda Civic, Toyota Camry, and Honda Accord.
Searching the Kelley Blue Book (2010), I found the suggested retail prices for these cars: 2005 Toyota Echo $7,245; 2005 Toyota Corolla $9,305; 2005 Honda Civic $10,540; 2005 Toyota Camry $11,200; and 2005 Honda Accord $10,835. As you probably already now, the Kelley Blue Book is renowned for their used car guide. Because the prices they quote are for cars in excellent condition (for which less than 5% of cars meet the necessary conditions) and for cars sold by manufacturers (Kelley Blue Book 2010), I could definitely find a better deal if I looked for private sellers.
Based on this research, I have found that the Toyota Echo will meet all of our necessary conditions: not expensive, excellent gas mileage, and low maintenance and repair costs. Now that I know what type of car I wish to purchase, I will definitely use the tips laid out by Reed and Edumunds. com (2003) for choosing a car. These tips are very in-depth and cover topics like test driving and making offers. Given Edmunds. com and Reeds experience in the car industry, I feel we can trust the tips that they provide in their book. Thank you for agreeing to help me out with my car purchase.
Your offer is very generous! References Busse, M. R. , Knittel, C. R. , & Zettelmeyer, F. (2009). Pain at the pump: The Differential effect of gasoline prices on new and used automobile markets. National Bureau of Economic Research Working Paper Series (no. 15590), 1-56. Retrieved from http://www. nber. org/papers/w15590. pdf Car Buying Tips. (2009). Choosing a car. Retrieved from http://carbuying. tipcentral. net/choosingacar. html ConsumerReports. org. (2008). What that car really costs to own: Knowing a vehicle’s cost over time can save you thousands in the long haul.
Retrieved from http://www.consumerreports. org/cro/cars/car-prices/what-that-car-really-costs-to-own-4-08/overview/what-that-car-really-costs-to-own-ov. htm J. D. Power and Associates. (2010). 2010 Vehicle Dependability Study. Retrieved from http://www. jdpower. com/autos/ratings/dependability-ratings-by-brand Kelley Blue Book Co. , Inc. (2010). Kelley Blue Book. Retrieved from http://www. kbb. com/ Reed, P. & Edmunds. com. (2003). Strategies for Smart Car Buyers. Santa Monica: Edmunds Publications. Samarins. com. (2010). 10 best used cars / SUVs with good fuel economy. Retrieved from http://www. samarins. com/choose/best. html