The decision to trade or repair your car is determined by several factors.
It would be nice to get a new set of wheels, but can you afford it? If your car has covered several miles, you may need a car repair almost every month. Cars have a long life span, but after wear and tear some important parts start to fail.
Constant trips to the mechanic are not only time-consuming but also expensive. In this article, we will tell you when is the right time to get rid of your old car.
Wear and tear costs
This is the decisive factor that determines whether you should trade-in your car. It is necessary to replace some car parts such as the fuel pump or oil filter, but when a car starts requiring the replacement of more expensive components such as the transmission, it might be time to trade it in. If your monthly repair costs outweigh the monthly loan repayments for a new car, then it is time to replace your old car.
An old car has the added disadvantage of being fuel-inefficient, which leads to an increase in carbon emissions. It is cheaper to repair your car than to buy a new one. However, the cost of a new engine or transmission is usually over $1,000, and that might be a nice down payment for a new car.
Pros for fixing your car
Sentimental value: Cars mean a lot to many people. It could be that your car was a model passed on from generation to generation. This means that it occupies a special place in your life. Repairing the car will thus make a lot of sense.
It is cheaper to repair the car: buying a new car can dent your household income. You will have to make monthly repayments or an initial deposit. The option of repairing your old car may be cheaper than buying a new one.
New cars lose value: If you check the leasing rates carefully, you will find that a car loses a lot of value in the first few years. You might buy a new car only to find that its residual value decreases quickly. This means that you will receive less value if you sell the car at the end of the leasing period. If you don’t want to spend so much on something that loses value, the best option is to repair your old car.
Lack of finances for a new car: If you are going through a difficult time, such as losing your job, it would not make sense to buy a new car at this time. Your car is a luxury and you can get by with an old car until your finances improve.
High car interest rates: When the economy is suppressed and interest rates are high, it doesn’t make sense to buy a new car. The better option would be to repair the car and avoid high monthly interest rates.
Reasons for purchasing a new car
Constant breakdowns: It can be embarrassing. Imagine going to this stylish dinner only to have your junk car break down in front of your guests. You never know when an old car will break down. Most of the time this will happen when you really need the car to do the job. When you are tired of the constant car breakdowns, it is time to get a new car. Also, a new car has a warranty. This means that you are covered for spare parts for the duration of the warranty. The peace of mind you enjoy with a new car is irreplaceable.
Old technology: You may have bought the car when ABS and air conditioning had not yet been invented, and you have been looking forward to technologically advanced equipment for some time now. This might be the right time to buy a new car. A new car will be equipped with a fuel-efficient engine and modern aids such as Bluetooth, on-board computers and LCD touchscreens. These additions will make travelling in your new car a pleasure.
Safer car: Old cars are a disaster waiting to happen. Modern cars are equipped with the latest safety features like airbags, rear view cameras, automatic brake assistants or blind spot monitoring. Driving such cars guarantees safe driving even in extreme weather conditions.
Too much time in the workshop: If the car spends most of its time in the shop, it’s time to replace it. Constant repairs mean that the car has outlived its usefulness. Over time, you will find that you need to replace the engine or gearbox. This is usually more expensive than buying a new car, and it is better to use that money for a deposit.
Aesthetic appeal: cars represent the owner. If you have climbed the social ladder and are tired of your old car, it might be the ideal time to buy a new one. Your image is at stake and nobody wants to find the new boss pushing his broken-down car into the parking lot.
There is no definitive answer as to whether your car should be replaced or repaired. Your personal needs will be the deciding factor. If you are unemployed and do not have a paycheck, it will be impossible for you to afford a new car. If you have the financial means, you will have to weigh the cost of repairs against monthly payments with that money. If your car has gone more than 100,000 miles, the cost of repairs will skyrocket.
If you need a new engine or transmission, the repair costs will exceed the cost of buying a new car. With this money, you can even make a down payment for a new car. A new car has a warranty that ensures that any repairs will be taken care of. Most new cars are equipped with safety features such as airbags, brake assistants, and navigation systems, so it is worth buying a new car. They are also fuel efficient, which means you will spend less on fuel.
If you are tired of being constantly embarrassed by constant breakdowns, then it is advisable to buy a new car.