You are shopping for a new vehicle.

And, you want to make the best choice.

This should be a wonderful and rewarding experience, right?

We have a general idea of how much extra you can afford on a payments.

But, then again… do you?

If you have not considered the operational costs of having a vehicle for both the short or long term you’ll soon find your mind begins to wander in various directions:

  • What type of vehicle should I invest in?
  • Used or new?
  • How much is too much?
  • Will it be worth my investment in the long run?
  • Should I “drive it into the ground?”
  • What insurance company should I get for my new ride?

Sound familiar?

According to AAA, depreciation is listed as the number one expense of owning a vehicle.

In fact, Cars Direct reports that a new car on average depreciates by 20 percent as soon as it is driven it off the lot, then around 15 percent each year after.

Second to depreciation is fuel expenses. In fact, according to Money Under 30:

How to save money before buying a car in Michigan Insurance

On a side note, there are the extra doodad we tend to buy when we stop at the local convenience store based fuel station.

If you find yourself buying coffee, soda, snacks, or other items every time you stop at a gas station, one Dave Ramsey-like move is findings a fuel-only station.

For example, Henschen Oil in Nappanee, Indiana offers key-fueling services.

How to save money before buying a car in Michigan Insurance - Nappanee Indiana Fuel Service - Henschen Oil

High performance fuel, no extra expenditures.

Now, back to depreciation costs of a vehicle.

Following are fuel depreciation when buying a vehicle:


Therefore, all expenses considered, the type of car you buy must also have excellent resale value in the event of future purchases.


A USA Today study reports that that the average price of a new car in 2015 was $33,560, and that was 2 years ago.

Therefore, car shopping is not something to be taken lightly.

That being said, what type of car is best?

To begin, let’s look at the total cost and cost per mile of a each type of vehicle calculated in a 2016 AAA Driving Cost Brochure.

It would appear that small sedans have the smallest annual total cost as well as cost per mile, and a large sedans have the largest.

However, this does not mean that the resale value of each type of vehicle will have the same outcome.

According to Kelley Blue Book’s Top 10 Models, Trucks and SUVs have overtaken nine of the ten spots for giving owners the most money back in their pockets for resale after depreciation.


If trading in a vehicle, a common question people ask is, how do I know if/when to sell my current vehicle?

Car Direct answers this exact question: “Whether your car loses value quickly or slowly doesn’t really matter if you hang onto it long enough.

Depreciation will eventually take its full toll.

On the other hand, if you’re going to trade or sell within the first five years, the rate of depreciation can have a major impact on your wallet.”

Therefore, not only selecting a make and model of a vehicle with low annual total cost and high resale value, but also picking a certain time to trade in your current vehicle could save you from breaking the bank.


So, what should I do when I am ready to shop for a car? Research, research, research!


Research different makes and models of vehicles, both new and used, depending on your driving situation.

Always stay up-to-date on the resale values of your own car as well as the vehicle you are looking to make as your next investment.


Also, read up on how Safeco Auto Insurance can help you with your investment, offering an online quote to meet your automotive needs.

Safeco has been delivering new and better ways to protect cars and drivers with auto insurance for over 85 years.


Safeco offers auto insurance discounts for safe driving, low mileage, having multiple drivers, and more.

What’s more, every Safeco Auto Insurance policy offers :

Roadside Assistance and will help you change a flat tire, deliver gas, oil, or other fluids like radiator and brake fluid, jump start your battery, and send out a locksmith if locked out of your vehicle.

Basic Roadside Assistance - Safeco - Mahar Insurance Agency Michigan

Had an accident?

Every Safeco policy qualifies for accident forgiveness after a set number of years of accident and violation-free driving.

Car totaled?

No worries!

If your car is declared a total loss because of an accident or theft, Loan and Lease Coverage pays a possible difference between how much is left on the loan or lease and the depreciated street value of your car.

Also, if you are the original owner of a car that is less than one year old that has been totaled or stolen, Safeco will also pay you the value of a comparable new car, so depreciation is not an issue.


Whether you choose your ride to be a new or used sedan, minivan, SUV, pickup truck, or any vehicle in between, in Michigan Mahar Insurance Agency is your local Safeco independent agent and can provide personalized coverage that is just right for you.


How To Save Money Before You Buy A Car - Nerd Wallet - Cost of buying a vehicle - Mahar Insurance Agency