Let’s look at the pros and cons to see if you should fix your car or buy a new one. These will go a long way to help you decide if it is time to invest in a new car or just fix up your older model.
Fix Old Car or Buy New? Pros and Cons:
Old Car
Pros:
- It’s paid off, so no monthly payments.
- This means extra money in your pocket.
- Because it’s an older car, insurance payments are lower.
- Easy to find replacement parts, and they’re less expensive.
Cons:
- Recurring maintenance.
- Becoming a real money pit.
- Times it’s not reliable.
- Starting to guzzle gas.
New Car
Pros:
- Probably more reliable.
- Warranty on parts and labor.
- Maintenance deals with the dealership.
Cons:
- Monthly payments.
- Because it’s a new car, the insurance premiums are higher.
- It loses money the moment you drive it off the lot.
- Parts are more expensive, even with warranty for parts and labor.
Of course, everyone is different, and mileage may vary, but the pros and cons are some constants to look at. You’ll hopefully arrive at the decision of whether to fix your car or buy a new one. You might find that holding on a bit longer is worth it, or you could buy a new car and start afresh.
How Much Money Do You Pump Into Your Vehicle?
You may not know, and that’s not necessarily a good thing. Let’s see if we can help you chart the expenses.
Granted, the price of gas has gone up, but do you have to fill the tank more often? It may be an easy fix, something as simple as a new set of spark plugs. You may also need a new air filter or at least clean the one you have. Nevertheless, keep track of your spending on gas weekly because it will significantly influence your decision of whether you should fix your car or buy a new one.
Are you finding oil or coolant spots on the driveway where your car was parked? The oil could be from a damaged oil pan or gasket. The cost of repair just depends on the severity of the damage. But if it’s coolant, you could have a bigger problem. You may have a loose radiator hose, a crack in the reservoir, or the radiator is rusting out, and you’ll start seeing bigger puddles and bigger problems. If you’re losing coolant/anti-freeze, you’ll want to keep a close eye on the fluid level and top it up every time it dips below the recommended fill line.
Does your car seem to hesitate after you’ve come to a stop and you try to accelerate? Does it seem like it’s slipping gears: you step on the gas, but the engine roars before the gears catch, and you move? That may be a sign of a failing transmission. Check the transmission fluid level when the engine is warm, and the car is running. If it’s low, fill the tank to the fill line and see if the ride smooths out. If it continues to act up, get your transmission checked. A new one can equal a couple of monthly payments on a new car, so you have to decide if it’s worth it. If your vehicle is nearing 200,000 miles, deciding whether you should fix your car or buy a new one will be easy. Opt for the latter.
What Repairs Have You Had To Have Done Lately?
New alternator? Fuel injector? Automatic window lift? Keep a detailed list of the repairs (this includes how much oil, coolant, etc.) and the cost of everything you have done to your present car for, say, three months. If the grand total in those three months is more than you thought, don’t weigh whether to fix your old car or buy a new one. Start shopping for a new ride. Even if you’re making most of the repairs yourself, your time is worth something, and do you want to spend every other weekend working on the car?
How Much is Your Car Worth?
Check the Blue Book value, and be honest. It may be worth less — a lot less — than you think. Even so, it’s worth something if you sell it or use it as a trade-in for a new car. Does the old car still suit your needs? If you’ve started a family and your vehicle is a sub-compact, you may have outgrown it.
Ask yourself what your long-term goals are. Is this the car you want to keep? Can you afford to keep up the repairs? At a certain point, when enough old parts have been replaced, do you have a basically new vehicle? One that will last you several more years? If your car has seen its fair share of days, don’t be on the fence about whether you should fix your car or buy a new one. Buy a new car for the sake of your safety, peace of mind, and pocket.
Can You Afford a New Car?
A sad reality that may influence your decision of whether to fix the old car or buy a new car is that you may not even be able to find a new one. Due to supply-chain issues, brand-new vehicles are sold before they reach the dealers’ lots. Used car prices are climbing up because there aren’t many new cars available. Automakers worldwide are slowing — in some cases, halting — production of new vehicles because they’re waiting on desperately needed chips (1). So, in some cases, the decision of whether you should fix your car or buy a new one is already made for you. However, you may still get a good used car with fewer maintenance issues than your current one.
Can You Wait Another Year?
Inflation has made it a rough time to buy a new car, and used car prices have begun to rise, according to the Consumer Price Index (2). If your present car can hold out another year and you can afford the expense of repairs, go ahead and have it fixed. If you can’t, find a better-off used car. Brand loyalists have had to stray outside their comfort zone and are now even buying foreign used vehicles.
But remember, maintenance on a new car — especially a foreign or luxury vehicle — can be just as pricey, and you’ll be paying the higher insurance premiums that accompany a new set of wheels. Also, depending on the engine requirements, you may have to spring for premium gasoline.
How’s Your Credit Score?
Last on our list of things to consider when deciding whether you should fix your car or buy a new one is your credit score. If your credit score isn’t at least in the 700s, you could be looking at higher interest rates on a car loan, so you might want to spend the next year doing the minimum amount of repairs to keep your present car running and start socking away all of your spare change to put toward next year’s model. Or at least a decent used car.
It wouldn’t be a bad idea to set a financial plan or a budget and do your best to stick to it. If you cut out the unnecessary expenses — $5 cup of coffee every morning, lunches out instead of brown-bagging it, cable channels you never watch, high-end electronics — you should have a pretty good start on the down payment for a new car.
But that’s something you have to decide. Hopefully, we’ve given you enough to help you determine if you should fix the old car or buy a new one.
Get A Car Loan
If you decide to get a new car or pre-owned car and need a car loan, get one from Minute Loan Center. We have affordable loans that will fit your needs and keep you financially afloat. Contact us today to open your account and get approved for a loan instantly.
Kevin brings over 15 years of experience in marketing, with a specialized expertise in growing online businesses. As the Director of Marketing at a leading FINtech company, he employs innovative strategies to enhance brand visibility and customer engagement. Kevin’s passion lies at the intersection of technology and finance, where he pioneers solutions that not only meet but exceed consumer expectations. His commitment to leveraging his expertise ensures impactful results and the building of lasting relationships in the digital landscape.
