For every car owner, deciding to continue repairing their old vehicle or invest in a new one can be a real dilemma.
However, the key to solving this puzzle lies in financial wisdom – understanding when it’s the right time to part ways with your old car and opt for a new one.”
Even seasoned car owners find it tough to be wise when faced with the repair old versus buy new dilemma. They say there is a fine line between being a practical person and a penny-pincher. So let’s review some factors you should consider when deciding for or against a repair or a replacement.
Budget
Every decision should be based on your budget, not your mind or heart. Consider whether you find it hard to pay for expensive repairs on your old car and whether you could afford a new car down payment instead.
You must also consider that even a new car could have unexpected expenses, such as vehicle registration taxes, a monthly bill, and higher insurance costs. The difference between a planned expense of a few thousand and an unplanned expense of hundreds of dollars could hit you hard. So if you think you can fit a new car into your budget at the maintenance rate of your old car, it’s time to trade up!
Remember, a new car will lose some severe value when you drive it off the lot. It will lose about 20%, and it does not matter who you are or what type of car it is. You do not have to worry about an older car or a used car receiving that type of financial treatment.
New cars smell nice, and everyone in your neighborhood will give you some respect. There could even be some envy. Things change when you have a new car. You may need an alarm system to protect your new motorized baby. But with a new car, you may not have to see your mechanic for over a year or so, hopefully very few times after that.
How Much Are You Paying in Repairs and Maintenance?
The first and perhaps most important question you should ask yourself is how much you spend on routine repairs and regular maintenance. Even a few hundred dollars in common repairs and maintenance every other month turns out less than paying for a new car installment (well, some of them, at least).
If you’re looking to save on routine maintenance, the best way would be to start doing what you can yourself. You can manage oil changes, tire rotation, oil filter changes, and other simple maintenance activities by yourself, saving you the cost of paying a professional. Learn simple vehicle troubleshooting and maintenance skills. That being said, it’s always best to find a trusted and solid mechanic to get the job done when there is an issue with the engine, and even more so when you’re not comfortable handling such high-impact issues on your own. And how many people are?!
Market Value.
In deciding between repairing and buying a new car, you would almost always want to replace your old car unless there was some deep emotional attachment. So, another aspect you should consider is your car’s current market value.
If your car has a high selling price and costly maintenance and repair, the repair route isn’t the best option. If you’re unsure of your car’s market value, there are several online agencies and car dealerships that will give you a quick market estimate. You can usually strike a decent deal if you’re looking to have your car sold for cash.
Peace of Mind
While a new car will eliminate the need tto visit your mechanic as much (you would hope!), an older model from a higher quality brand than your current car may eventually last longer than any new car you are contemplating. The bottom line is that dependability, reliability, and costs are the most important things you should consider between repairing and replacing.
