Ford Motor Company (F), Copart, Inc. (CPRT), CarMax, Inc (KMX): Five Things to Consider Before Buying That New Car

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Besides, if you make sure you keep up on routine maintenance and don’t let larger repairs linger until they cause significant damage to other parts of the car, even older vehicles shouldn’t require significant time in the shop more than once or twice per year.

Better yet, if you can find an honest mechanic who charges fair prices, you’ll realize the costs for those inevitable repairs will be far less than the costs of owning a newer vehicle.

Here’s how to invest
Of course, if you’re dead-set on replacing your old car with something better, at the very least consider searching for a well-maintained used vehicle. Then, before you buy, be sure to have it inspected by a reputable mechanic and you’ll be well on your way to saving more money.

But now that you’ve saved all that money by either keeping or buying a used car, how can you put it to work?

Perhaps you might pick up some shares of Copart, Inc. (NASDAQ:CPRT), a solidly profitable auto salvage specialist that has catered to dealers, dismantlers, rebuilders, exporters and, occasionally, everyday consumers since its founding in 1982.

Copart, Inc. (NASDAQ:CPRT) has also been on an acquisition spree over the past year in its efforts to corner the auto salvage auction market, with buys in Brazil and Germany last November, followed by the acquisition of U.S.-based Salvage Parent, in May, and most recently the purchase of Autoresiduos S.L. in Spain in June.

Or perhaps you could look at buying shares of used car-seller CarMax, Inc (NYSE:KMX), which are up more than 60% so far in 2013 and at the end of last quarter stood tall as the second-largest position in Markel‘s impressive long-term-oriented portfolio. Incidentally, that portfolio is managed by Markel’s CIO and noted value investor, Tom Gayner. In addition, the long-term quality of CarMax, Inc (NYSE:KMX)’s business is more than evident considering Markel’s single largest holding is none other than the veritable Berkshire Hathaway.

Still not convinced?
But don’t get me wrong; I understand owning and maintaining an older vehicle certainly isn’t for everyone.

After all, there’s a certain satisfaction to be had with driving a new car caused by everything from the smell, look, and feel of the state-of-the-art machine.

And the technological advances also offer mouthwatering benefits, including smoother rides, better power and fuel economy, and more specific features such as automatic tailgates, voice control systems, blind-spot indicators, touch sensors, and a bevy of other goodies you won’t find in last decade’s models.

In the end, though, just be sure to use this as food for thought as you consider whether those benefits are worth the added financial outlay.

The article 5 Things to Consider Before Buying That New Car originally appeared on Fool.com and is written by Steve Symington.

Fool contributor Steve Symington owns shares of Ford and Markel. The Motley Fool recommends Berkshire Hathaway, CarMax, Copart, Ford, and Markel and owns shares of Berkshire Hathaway, Ford, and Markel.

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