As your car gets up into the later years of its life, breakdowns will become more and more common. Key components in the vehicle gear down and fail, your wallet will feel those repair costs. A replacement vehicle may become a more appealing option compared to spending thousands of dollars on a car you know will break down again in the coming years. So when do you invest in new wheels, and when is it more cost-efficient to keep using your current ride?
Understand Your Full Repair Costs
To properly decide if you should be replacing your broken down car, you should know the full extent of your repair costs. Take your automobile to a mechanic you trust and get an estimate. Discuss your options with your technician. Do parts need to be replaced? Can they be replaced with used parts or only new ones? What types of repairs will lengthen the life of the vehicle longest while which would be cheapest?
Know Your Car’s Value
Using resources like Kelley Blue Book, find out your vehicle’s current market value based on its age, mileage, and condition. Now weigh that value against your repair costs. For example, if your 2007 automobile is worth $2,000 today but your repair costs are $2,100, then it’s time to opt for a new ride.
Replacing Your Car: New or Used?
When you need a replacement vehicle, you’ll have the option of buying a brand new vehicle or a pre-owned one. You may be able to find a cheap used car, but how reliable will it be? You could find yourself in breakdowns again! While a new model vehicle is much more expensive, it is more dependable than a pre-owned one.
Other Considerations to Make
Shopping for a new car isn’t easy, especially in today’s market, so it can be tempting to stick with the vehicle you know even in the face of high repair costs. Just remember your car does depreciate over time and is likely to continue to have breakdowns in the future. Another consideration is that a new automobile is likely to feature better fuel economy and safety. In addition to the fact that your current car is in its last legs of life, the new vehicle may be a better way to spend your money.
Waiting Until It’s Too Late
Unfortunately, your automobile will expire one day. Choosing to replace your ride before it fails is a smart choice, especially since you can sell it to a dealership and use its value toward your next vehicle. Dealerships offer less money for cars that don’t run, so it’s best to get it in before it breaks down.
Need to Find a Replacement Vehicle?
If it’s time to replace your broken down ride, United Financial can assist with your car purchase! We’re partnered with Groove Car, one of the biggest auto buying websites with a HUGE selection of all types of vehicles. You can easily shop for your new vehicle right on our website, browse inventory from local dealerships, compare vehicles, receive Carfax reports and so much more. Plus, you can get pre-approved for an auto loan with United Financial CU. Learn more about getting pre-approved for an auto loan now.