Time and travel can take a toll on even the best kept cars. Even though it is natural for your car to need servicing once in a while, the big roll of repair bill makes you wonder that a new car would be nice. Whether it would be smarter to replace your car than repairing your car – there is no straight yes or no answer to the question. But a good, hard look at your own finances can help you make the more informed choice.
How much are you paying in repairs?
Ask yourself this question. Generally the amount spent in regular maintenance every few months is less than what any new car payment would be, even when buying a used car. In the case, the payment for the car has been made in full and the car is completely yours, the only costs your four wheeler incurs are fuel, insurance, and maintenance. The fuel and insurance costs do not change significantly with a newer car, which means that buying a new car will always be more expensive than payments of maintenance of an old car.
In case you are still making EMI payments of your car and you think that maintenance costs of your present car are higher than another car of the same price range, you may be better off getting a new car, but you’ll lose all the money used in paying off your existing vehicle as sunk cost. In a dilemma like this, here are some things to keep in mind:
Does the repair cost less than a few months’ payment on the car?
If the repair cost is less than a single month payment and your vehicle is paid off in full, then keeping the old car is best for you. In another case, if the repair cost is less than payment for a couple of months and the repair adds a few more months to your car’s performance without any additional maintenance costs for next few months, it still makes sense to go ahead and get the repairs done as well. The problem starts when you have a chain of expensive repairs queued up after every few months. For example, a Rs.4000/month car payment versus a Rs.12000 repair every three months evens out. But adding monthly maintenance into both scenarios, getting rid of a car that’s costing that much in costly repairs in every four months is the wiser decision.
Another objective way of judging is going by the rule of keeping the repair amount less than half of the car’s market value. If the total maintenance charges sum to an amount less than 50% of the market value of your car, then you’re better off doing the repair. But if the answer is no, then it doesn’t make sense unless the repairs increase the sale value of your car and adds more life to it. This is one simple rule-of-thumb to go by while deciding whether to keep the car or replace it. You can easily determine the authentic market value of your used car at the website www.indianbluebook.com
When deciding the right time to sell your car there are a host of other factors that you should consider like how old your present car is, how often does it require servicing and how much you value your convenience. A new car comes with warranty which will do away with the back-and-forth trips to the mechanic. Newer cars also come with better safety features and provide better fuel mileage.
On the other hand, even new cars have unexpected repair costs sometimes. There’s a big difference between a Rs.9000/month car payment and a Rs.9000 payment for an out of the blue repair. If you happen to have a good, honest mechanic and the repairs go for add years of life to your current car, your present ride can be just as dependable as a new one. Plus, if your car is all paid off, there’s no reason to dive for a new or used car loan.
Ideally, one should not wait for a break down of the car to take the decision of selling it. The decision should also not come from a place of overwhelmed fancy for a new car model spotted in a magazine. A hurried buy, more than often, pushes the owner into depths of regret within few days of purchase. Rather plan the decision of selling your car well in advance. Keeping the picture of your finances in mind is the best way to go about it.
Once you are set about selling your car, you can visit www.truebil.com. When you register your email ID and phone number, Truebil car experts ring you back and fix an appointment for the inspection of your car. Here, it should be noted that Truebil tests a car at more 150 checkpoints and takes only non-accidental cars with year of manufacture 2005 and beyond.
Once the car is listed on Truebil website at the best price, all the used car buyers can access the pictures and information of your car. When a buyer buys your car, we also provide free ownership transfer. For more details visit here.