Advice for the Decision to Repair or Buy a New Car
It can be a difficult decision to spend money on your old car. When we have a break down we can get emotional and feel let down and this can create a desire to trash the old car and think it would be better to buy a new one.
Sometimes it is better to replace it, but most times it’s smarter to invest in your old car. Nowadays we see customer’s cars lasting well over 200,000 miles. If you can drive your car for 200,000 miles you will dramatically lower the cost of operation as long as it remains reliable. Not to mention the wonderful feeling of no car payments!
Below we have provided some examples to help you look at this decision from a financial point of view. If you wish to discuss it you can email or phone Jeff the owner of Evergreen Autoworks and get free advice about your car and whether it is a good investment.
Questions you need to ask yourself before investing in your car :
- What’s my intention for this car? Do I want to drive it for many years to come or am I going to drive it for a year and then off a cliff?
- Is this car in the shop more than it’s on the road? Unreliable cars are not acceptable!
- Is what I’m buying maintenance or a break down and if it’s a break down how often is this happening?
- If I invest this money into the car will it prolong its life and if so how many years or miles might I be able to continue to operate it to spread out the cost?
- How much am I spending on car repairs and maintenance annually or monthly? Does this exceed the cost of replacement with a more reliable car?
- Can I buy a new of different car with cash and if not do I want a car payment?
- What’s the true cost of a new car vs. continued ownership of my current ride?
Unfortunately no one has a crystal ball to answer some of the questions above, but if you choose a make that has a good reliability record you stand a good chance of reducing your repair costs. Use resources like www.consumerreports.com and www.edmunds.com to research the most reliable cars before you buy. And if you buy a used car be sure to have it inspected by a unbiased professional mechanic.
Check your current cars value using www.NADA.com and also see other makes and models used and new car pricing. For more car care advise and to better understand how your car works, copy and paste the address below into your web brower. There you will find a guide supplied by the AAA that will help you better understand the workings of your car.
“Still undecided about whether to fix it or drive it off a cliff? Use this worksheet to see how much you can save by fixing your car vs. replacing it”
To Sell or Not To Sell…
- Accumulated Mileage
- Total Car Payments
- Gas and Oil
- License and Registration, Tax
- Repairs, Maintenance and Tires
- TOTAL EXPENSES
- Minus Resale Value
- Total Cost
- Current Car
- New Car
Comparison over the next 4 years
*Mileage based on 15000 miles driven per year over the next 4
years. The current car is assumed to be 4 years old with 60,000
miles on it when the comparison starts.