This is one of the most common questions that car owners are faced with. It’s difficult to figure out whether it’s a financially wiser decision to keep repairing one’s current car, or buy a new one, instead, because there are many factors that need to be taken into consideration. In order to determine whether it makes more sense to fix the old car or buy a new one, there are a few questions that car owners have to ask themselves.
Assess the Old Car’s Condition
They can start by trying to figure out for how much longer their old car would last. If the old car is in a good enough condition to last for at least another 2-3 years while requiring only a few minor repairs, it’s probably wiser to postpone buying a new one.
Think About Repair Costs
Next, they have to determine what it would cost to fix the old car. As cars get older, they become more expensive to maintain and repair. In general, if a repair costs more than the value of the entire car, it’s better to start thinking about getting a new vehicle. Repair costs are one of the determining factor when it comes to this type of dilemma.
It should be noted, though, that repair costs for an old car might be lower than the monthly payments for a new car, so those who can’t decide which solution is cheaper, should take this into account.
Also, they should think about how long a certain repair will extend the life of their car, in order to decide whether it’s worth doing it.
Does Your Budget Allow You to Buy a New Car?
Furthermore, you should consider whether you can really afford to buy a new car. To figure it out, the down payment, along with the monthly payments, need to be taken into account. Then, compare those monthly costs with the costs to maintain the old car, and if keeping the old car means you would spend more than what you would spend on monthly payments, than buying a new car is the reasonable choice.
In general, when your old car reaches around 100,000 miles, it’s a good time to stop and do the math on whether it’s better to keep driving it or buy a new one. This is because when a car covers more than 100,000 miles, the wear and tear on many of its components starts to show and it’s the time when various parts need to be replaced. This is when car owners can calculate how much it would cost them to replace all the parts that are too worn out and can’t be used anymore, and compare those costs with the cost of buying a new car.