The thing is, car dealerships charge quite a lot compared to your friendly neighborhood mechanic. Some would have a price difference of 10-20% on both parts and labor. So where are you going to have your car serviced? Many would often think that you need not throw good money after bad (in depreciation) and just have the car serviced elsewhere.

However, the complication here is that having the car serviced elsewhere can void the warranty. That is the warranty that you have paid for when buying new. So voiding your warranty for savings might just be the worse option.

Besides, dealership work is often guaranteed service. Something breaks, then they’re responsible for it. Besides, given the electronic systems fitted in today’s cars, dealership have the best equipment to diagnose what’s wrong with your car making having your car serviced elsewhere a gamble on your car and money.

Now, when getting one, many would be basing their decisions mostly on price. One best way to get the best price is to let dealers slug it out. Shopping around (including the Internet) can yield some pretty good deals.

But is that all that you should be basing your decisions on? Here are a few intangibles that should influence you as well.

1. Dealer reputation – How high does the dealership rank among the automaker’s list? Not all dealerships rank the same even if they carry the same makes and models. Some shoddy dealerships might even be selling you an older stock, or a returned vehicle.

2. After sales – Some dealerships are just interested in the sale so the moment you drive off the lot, you’re on your own. How well does the dealership follow up on the sale? Are your after-sales inquiries met with the same enthusiasm as when you’re doing the sale?

3. Service – New cars demand that they be serviced at the dealership for warranty purposes. So how good is the dealership’s service department. There’s value in having it serviced at the same dealership from which you buy a new car since, as a customer, you can put more pressure on them to fix whatever issue you might later have with the car.

Many new car advocates would swear by the hassle-free driving experience that a new car brings. That, to them, is worth all the bucks that you save by not buying one brand new.

Buying used is definitely a hit or miss thing. Or, if not, quite a chore since you have to do a lot of research and leg work to be able to get one that’s low-mileage and well-maintained. Even at that, you still need to shell out a few more bucks for the routine maintenance and repairs.

Then again, there’s always certified “pre-owned” vehicles sold in dealerships. They do count as used cars but are more costly than you get one privately. Thing is, they usually come with warranties albeit shorter (12 to 24 months).

One of the open secrets with these certified pre-owned cars is that they usually are more profitable for dealerships than brand new ones. If you don’t do the math carefully, you might really be better off getting a new one. Then again, warranties do count with these used cars.

In my opinion, it always boils down to math but I guess personality counts as well. If you’re the type of person who can’t be bothered with repairs and such, maybe the depreciation cost can be worth your peace of mind.

However, automotive enthusiasts would often swear that there’s no replacement for the hassle-free driving offered by a new car since you won’t expect major repairs at least in 2 to 3 years’ time. Driving without headaches, they say, is priceless.

But is it really worth it? How much is headache free driving, really?

Even if you have all the dough to buy a brand new car in cash, there’s always depreciation to contend with. The moment you drive one off the lot, the car automatically depreciates 15-20%. That means a car that you bought for $15000, will be worth $12,000 in just the few minutes after you purchased it.

Let’s say you don’t have money and have to take a financial plan to pay for it. Let’s say a five-year term since many automakers have now made five-year warranties almost standard on their vehicles.

A five-year term assigns as much as 30% on interest. That means, you’ll be charged $19,500 for a car that’s worth $15,000. In your first five minutes of owning it alone, you’ll be out $7,500 – half the value of the car!

Typically, at the end of five years, your car will only be worth $6,000 or a depreciation of $9000. All in all, plus the interest of the loan, you’d have spent $19,500 for a car worth $6,000 when you finally own it. $13,500 down the hole.

So to a point, that’s the real value of hassle-free driving with the warranties and all. You’re basically buying two cars.

I’m a Toyota fan and one reason why is because they virtually make the most practical and most durable mass production cars in the market. But this issue will definitely have tarnished that reputation.

Now, if you happen to own one of the affected models, you should also know that other car companies would want you to ditch that Toyota and buy one of theirs. Oh yes. Business is still a predatory thing.

Rival automakers GM, Ford, Chrysler and Hyundai are all offering cash incentives for those who’d like to trade in their Toyota. Chrysler is offering $1,000 for Toyota trucks to be traded in for any Chrysler, Dodge, Ram, and Jeep vehicles. Hyundai is offering the same $1,000 cash bonus for any Toyota vehicle traded in for the Sonata, Elantra and Elantra Touring cars.

So, if you’re a Toyota owner, will you trade in your Toyota for any of these vehicles?

Our take? $1,000 doesn’t seem like a good enough deal to take on a new car. Sure it sort of takes car of the bit of depreciate you suffer from buying a new car. And personally, I’d still take Toyota over a Chrysler or a Hyundai. Better weather it out. Toyota’s near a permanent fix anyway.