Did you know that most American adults pay about $750 each year on car maintenance? Even though you like your old vehicle a lot, if you noticed that you are maintenance bills are piling up, it might be the perfect time to investigate a new vehicle.
This article helps you answer the question, “should I buy a new car or keep my old one?” There are many pros and cons to purchasing a new car, and this article helps you make an informed decision before purchasing a new vehicle.
We will walk you through these pros and cons, and Additionally, we will list some tips to help you deal with your old vehicle if it's not in great condition.
Understand your vehicle's mileage
If you are still hesitating about purchasing a new car, look at your vehicle's odometer and check the reading. According to automotive experts, if your vehicle has more than 150,000 miles, it might be the time to sell it and purchased a new one.
As a rule of thumb, most vehicles' major components break out and fall shortly after 100,000 miles. You will notice a significant increase in your repair costs. For example, if the vehicle's engine broke, you might need to pay up to $2000. On the other hand, if the transmission required replacements, you might need to pay about 1800 at the minimum.
Repair costs should be your first and most important factor in deciding between a new vehicle and keeping an old one. Look at repair costs, compare them to the vehicles' overall value, and consider the mileage.
What is the 50-50 rule?
Several automotive experts use this rule, and the idea here is that you need to compare your vehicle's yearly maintenance to the actual worth of the vehicle.
If you found that repair costs are 50% or more of your vehicle's value, you are advised to purchase a new vehicle instead of dealing with this hassle.
On the other hand, if you think your vehicle is classic and it might be worth investing in keeping it, the 50-50 rule might not apply to your situation.
The advice here is applicable for average vehicles that usually is giving you a hard time breaking d carrot
What about safety?
Safety should be your number one priority when it comes to driving a vehicle. If you think that your vehicle is breaking d and the problems are usually related to safety issues, you must get rid of this vehicle and not continue driving it.
It would help if you kept yourself safe, but you have to consider other people who drive with you, like your family members or kids, when you are taking them to school.
You would never want to put anybody's life at risk just because you're hesitating about selling your old vehicle or purchasing a new one.
Even if you can't afford to purchase a brand-new vehicle, there are many cars out there in the markets that are used and in great condition. Check out and shop for a good used vehicle, and you will find great options
How to find a good used car?
Wild Internet is filled with options of used vehicles that you could purchase; many of them are associated with many scams to keep in mind.
If you would like a shortcut and are looking for the safest way of buying I used vehicle, you might need to visit a certified dealer. Those dealers will provide you with detailed information about the used vehicle, and they will be upfront with you about any suggested repairs.
However, it would help if you kept in mind that you never want to trust any seller, whether it's a dealership or a private seller. Do your due diligence and check for the vehicle's history. You can request a vehicle history report or search through the Better business bureau's website.
You can also take this vehicle to a professional mechanic and have him inspected to ensure that there are no major problems you're not aware of.
A good tip is also to take a friend who might have some mechanical experience to help you inspect the vehicle if you can't afford a professional mechanic.
Buying a used vehicle should not be done in a hurry because you might get into many problems and scams.
Take your time and look for the right timing to purchase your vehicle that could put you and your family's life in safety.
Is it recommended to lease or buy a vehicle?
You might be in the situation where you were very frustrated from driving a vehicle that breaks d now and then. However, you might not have afforded to purchase and a vehicle at this point.
In that case, leasing a car would be a nice option because you will pay some monthly fees while getting a brand-new vehicle every three years.
You must worry about any car repairs, and if anything happens to the vehicle, we can return it to the dealership and get a new one.
Leasing a vehicle can be costly in the long run; even if the small monthly payment doesn't seem a lot to you, it can be very expensive if you add them up.
The other thing to think about is getting involved in car accidents or causing any damages to the vehicle that happened from your side. You might end up getting involved in a lot of these, and driving a vehicle that you don't can be a little risky and have a lot of hassle.
When should I keep my old car?
Even if your vehicle is giving you a hard time, automotive experts put together a list of possible reasons to keep your old car and not purchase a new one:
You don't have to worry about monthly car payments
There's nothing more joyful than owning a brand-new vehicle and enjoying driving it. However, if you went with financing, you might be dealing with monthly payments that a lot of people consider a pain.
Even though your vehicle is giving you a hard time, you might not feel the stress many people deal with when it comes to monthly payments.
Imagine an additional $300 added to your monthly expenses and how it can affect your overall saving budget.
Before making the decision, ask yourself whether you need to buy this car or just for fun.
Give yourself a chance to save
Many people tend to think of a new vehicle immediately right after paying off their current car.
However, it might make more sense for them to continue driving their old vehicle if serving their needs and giving them a chance to save for their next vehicle.
If they could save a good amount of money within a year while driving their old vehicle, they could reduce the monthly payments significantly by paying off a good d payment for their next vehicle.
This point is very important to keep in mind when thinking of buying a new vehicle. Did you know that many vehicles lose a significant amount of their value immediately after they are driven on the road?
Therefore, before deciding to buy a new vehicle, consider how much depreciation the vehicle will face after you buy it.
Are you looking to sell this car sometime in the future? You're most likely not going to make any profit, and you might deal with significant losses over the next couple of years?
Don't forget about indirect costs
It might not be obvious to many people the indirect costs associated with brand new vehicles.
For instance, did you think of auto insurance? Did you know that premium insurance is significantly higher for brand new vehicles as compared to older vehicles?
The other thing to think about is the tag renewal fees. Did you know that the price can be significantly different when renewing an older vehicle tag compared to a brand-new vehicle? For example, a 1994 Toyota tag costs about $30 while renewing a 2005 Toyota tag costs about $150.
If you are in a situation where you're wondering whether you should buy a brand-new vehicle or continue driving your old one, this article provided you with all the details you need.
Before making the final decision, you need to consider your vehicle mileage, understand your vehicle's overall safety, think about used vehicles, consider buying or leasing, and understand the different challenges when buying a brand-new vehicle.
If you decided to go with a brand-new vehicle, keep in mind the potential monthly payments, allow yourself some time to save, understand the brand-new vehicle's depreciation, and consider all indirect costs.
The last tip we would like to give you here is that you can make good money by selling your old vehicle and use the payment as a down payment for your new vehicle.