It’s an age old dilemma which every car owner faces after every few years. With judicious analysis of your present situation, you can easily decide whether to fix up or break up with your current ride.
After breaking up you can either go ahead and buy a used car which serves your purpose or buy a brand new one.
Jim Manelis, who is the head of direct lending for Chase Auto Finance said, “Even though the repair cost might hurt, you really have to think about buying a new car as a tremendously more expensive proposition”. When you buy a new car you are likely to spend more on its upkeep. You put high grade petrol in it; spend more time at car wash, take expensive insurance on it, etc. If something happens to your new car that is not covered by the insurance, for instance a scratch or bruise, then the costs of its repairs can be higher in comparison to fixing a used car. Another area where the costs of a new car can hit you is when a new part altogether is required after the warranty has just expired.
A fair idea can be obtained by keeping track of current market value of the car and comparing it against the cost of repair.
When to fix it up?
- The repairs are not costing a bomb.
- The condition of the car is same as new.
- You cannot afford a high insurance rate to maintain a new car. If you fix up your current one there is no change in your insurance plan.
- If you are likely to change ride often, then you can’t keep buying a new car every time you want to change.
- You don’t have enough time to go through the hassle of posting an ad, arranging for meeting and then negotiating with potential buyers to sell it off. You just fix up your old flame and are good to go.
- If you worry about the history of a used car you plan to buy. All you need to do is fix up your current ride as there is no unknown history involved.
- If you can’t commit to pay off a new car loan that you will take to buy a new one.
- If your car is still fuel-efficient and dependable.
When to break up?
- The car is posing as a threat on road. The car has become unreliable, has safety issues and would require significant amount of repair work to make it stable on road.
- The repair work becomes a frequent occurrence.
- You have enough time to research and find out a perfect car that suits your style and is latest in specifications. This will upgrade your daily commute experiences.
- Your requirements have changed. For instance you have moved to a countryside where a pickup truck is a more feasible option than a luxurious sedan which you were using in the city. Or you have had twins and you need to put car seats for infants. A spacious van is a better option than a sports car which you drove when single.
- If your current car is just fulfilling the basic need and now you want to indulge in the advanced features offered by the latest cars.
- If the mileage of your current car has dropped drastically and it has become a gas guzzler.
- If you care for the environment as some new hybrid cars use less fuel thereby reducing your carbon footprint.
- If you have driven it long enough and before it completely dies out you want to donate it to charity.
- The probability of a newer car breaking down often is less and hence it does make you stress-free.
In the end it’s all about comparing your options and making a wise decision that can save both money and time.