There comes a point when you’ve been repairing your car often and you need to make an important decision: are you “all in” and willing to commit to taking care of an expensive problem, or does it make more sense for you to move on from your current ride and spend some green on something new? It’s not an easy choice to make, especially when you factor in how expensive it can be to purchase a new vehicle, but almost everyone will face this problem at some point in their driving careers.
Examine The Real Costs
It definitely costs money to maintain a car over time, and some vehicles are pricier to keep in good shape than others. However, parting with cash for a brand new ride instead of repairing your car also puts a serious dent in your bank account.
It’s easy to be seduced by the idea of a new car warranty, which will easily take care of any problems that might crop up down the road. But in reality, you’ll need to do a careful analysis of the total cost of ownership associated with the purchase. Start by going over the new car payment. Does it match the average of what you’ve been spending each year to keep your current vehicle on the road? Sure, a $3,000 engine failure might seem expensive at the time, but over the course of 12 months it’s much less than the $500-a-month a new car might run you.
Then there’s the down payment and insurance costs to consider. You’re going to need to drop some cash upfront when you buy; so is this amount more than the cost of repairing your car for another year? From an insurance perspective, new cars often increase the price when compared to older models when signing up for a policy, which is another financial consideration to factor into the equation.
Even after you’ve crunched the numbers, there are still two situations in which it usually makes sense to stop repairing your car and look for something new. The first major consideration is safety. If your current automobile is constantly breaking down in a way that puts you or your passengers in danger, then it’s hard to justify keeping it around. The second case has to do with the total value of your car. Once repair costs start to exceed the total amount you could sell the car for — or would receive from an insurance company if it was totaled — it may be time to reconsider investing in further repairs.
It’s not always easy to sell a vehicle you’ve grown attached to after so many years together. By taking a long, hard look at the situation and being objective about the actual costs involved with keeping your current ride versus a new monthly car payment, you will gain a solid perspective on whether it’s time to trade-in or not.
Check out all the maintenance parts available on NAPA Online or trust one of our 17,000 NAPA AutoCare locations for routine maintenance and repairs. For more information on repairing your vehicle, chat with a knowledgeable expert at your local NAPA AUTO PARTS store.
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Source: NAPA Know How