Purchasing a new car or repairing the car you have is a dilemma everyone faces at some point in their lives. There are pros and cons with every situation.
No car payment
Extra money in your pocket
Expensive maintenance bill
Possibly more reliable
Warranty on parts and labor
Maintenance deals with the dealership
Pros and cons can vary from person to person and/or be dependent on the situation. However, it is always great to know your options and what you are up against prior to making a major decision. Here are a few things you may want to consider:
How much money are you paying for repairs for your vehicle?
If you are paying more money on your auto repair, maintenance, and insurance; it just might be time to purchase a new car. Take a look at your current auto expenses, and compare those expenses to what it would cost to purchase and maintain a new vehicle.
How much is your car worth?
It’s understandable that you are attached to your car. However, if you are spending more money on parts and repairs than what it is worth; it’s time to give good ol’ Betsy (whatever name you chose for your dearly beloved) up.
Will these repairs increase or decrease the value?
Examine your goals in the long run. Is this a car you want to keep forever or is this a car you want to sell for profit? Replacing parts that are old from wear and tear could increase the life of the vehicle and possibly the worth. Repairing parts from an accident obviously decreases the value of the car. Think about what your financial goals are and where you want to be long term. Is purchasing a new car included in that vision?
Do you have enough money?
Sometimes having money can make your life easier, unless you live beyond your means and wonder where your paycheck went within a week. But if you’ve set aside money for car maintenance then by all means keep your car. On the other hand, maintenance of new vehicles can be expensive as well. It depends on the type of car you get; luxury and foreign vehicles are typically more expensive, and sometimes require expensive premium gasoline. Other factors that affect how much a new vehicle will cost are credit scores, features, etc. Furthermore, do you have enough money to pay a car note?
All of these points tie into each other. Still, they are definitely worth putting some thought and planning into. Either way, making the best decision for you is what will keep you secure and level headed. Always revert and refer to your financial plan. What are your goals and how will selling or repairing a vehicle impact your life?
Best wishes friend!