Should You Fix Up Your Old Car, or Buy a Newer Model?

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Written By Online Figure

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Should You Fix Up Your Old Car

You’re looking at a $1,000 repair bill for the car you’ve been driving since you first got your license. Maybe you don’t feel a burning desire to buy a new car with fancy features, but you also don’t want to keep sinking money into your current ride. While a new car would be more reliable, you’d likely pay more in monthly insurance and registration. What do you do?

Determine the Scale of Repair:

Do some research to see how much your car is worth in its current condition. If the cost of the repair is more than the current value of your vehicle, think about using the money you’d spend on the repair as a down payment on a new car. Even if the cost of the current repair doesn’t exceed the current value of your car, who’s to say you won’t need another expensive repair later this year? The combined repair cost could exceed the value of your car, something to bear in mind when thinking about upgrading to a more modern car.

Get the Full Picture About Getting a New Car:

Before you become hypnotized by the look and feel of some brand-new wheels, step back. True, it makes sense to spend $7,000 on a down payment for a new car rather than the cost of a new transmission or blown motor. Chances are, your current car is fully paid for. By buying a new car, you’ll be saddled with a monthly payment, one that may cost more than another $7,000 when you’re done paying on the new car. Going back to the monthly insurance and registration, both will likely be higher than what you’re paying now. You don’t want to enjoy how a new car handles, looks and feels but feel a painful financial twinge every time you make a car payment.

Understand the Benefits of Ditching Your Old Car:

While you may take on a monthly payment and higher insurance premiums, you’ll be letting go of the anxiety that comes with not knowing if or when your older car will break down again. Know that you can buy a certified pre-owned car if you want to save some money on an upgrade. With a certified pre-owned vehicle, you’re more likely to find a model with an active warranty.

Another reason to bite the bullet and get a new car is newer vehicles come with better safety features. It’s no question that today’s drivers are more distracted than ever. You may be a contentious driver who’s always alert, but that’s certainly not the same for everyone else on the road. Auto safety technology has made considerable advances in recent years. The features on your current car could be poorly outdated, and they may even do more harm than good in the event of an accident.

Finding Balance:

No matter what, you’re going to be spending money either on repairs or on a new car. For that reason, it’s good to look at your current budget to see where you can make changes and cuts so you can easily make your monthly payment or cover the cost of repairs. Additionally, know that if you decide to trade in your old car to lower the price of your new car, you’ll need to get it up and running, which costs money. If you’re unable to repair your car to an operable state, or if you’d simply rather not spend the money on it, you can sell it in its current state for less money.

You’ve got a hard decision to make, and a lot to think about in terms of upgrading or paying for another car repair. No matter what you decide, it’s essential that you take your time to make the best choice. Remember, sometimes you have to make a short-term sacrifice to experience long-term gain. Best of luck!