You love your car. You’ve been taking good care of it for years, but after the last accident, you’re not sure how much more repair you’re willing to pour into it. But buying a new is also a huge financial commitment. Here are a few considerations as to whether or not you want to commit to a new vehicle.
Obviously, newer cars are safer. They have the latest technology to keep you and your vehicle out of harm’s way. If your car is more than 5 years old, compare the safety features of your car to newer vehicles. Some things can be added on to your current vehicle, but others cannot. Features like automatic emergency braking, backup cameras, and blind-spot monitoring are almost standard safety now. If there’s a serious gap in the safety of your car and newer vehicles, it’s probably time to buy a new one.
Also, if you are looking for your teen driver, safer cars are the way to go. Anything that helps an inexperienced driver navigate the road will benefit them.
If you find yourself at the repair shop often, you may feel like your car is costing you more than it’s worth. However, the cost of a new car is much more burdensome. Not only would you probably be paying more in monthly payments, but you’ll also pay more in insurance and registration fees.
A new car loses about 20 percent of its value in a year. This can leave you “upside down” in payments before long: You’ll owe more than what it’s worth. While this is a normal part of getting a new car, you’ll likely be stuck with it when this happens – for better or worse.
However, if your current vehicle is a gas guzzler you’ll likely save money on fuel by switching to something more efficient. This would be a great reason to trade in your vehicle.
Peace of mind
Sometimes the worry of an old car breaking down is not worth holding out to buy a new one. Repairing an old problem doesn’t guarantee another major problem won’t happen sooner than later.
You may just be fed up with an ongoing problem in your vehicle: An annoying engine noise, a broken radio, worn upholstery…there is a multitude of everyday annoyances and worries getting a new car can fix. Constant trips to the repair shop are stressful and can leave you several days without your vehicle.
Buying new comes with the peace of mind that you’ll probably not be in the shop for a repair. And if you do, you’ll probably have a warranty to cover it for several years to come.
If you’ve had a car a long time, you may have a sentimental attachment to it. Saying goodbye can feel like abandoning an old friend. While this isn’t necessarily a big reason to keep the vehicle, it may influence a decision to keep your old car. Think about it this way: Sentimental value makes the car more valuable to you than it would to anyone else.
Making a decision
While multiple factors have to be considered in your decision, there are a few instances we’d recommend buying new:
- Your car problems frequently make you late for work or cause you to break down in a potentially dangerous location.
- You have a major repair that will cost more than half the value of your car.
- You already want to get a new car and your repair shop informs you of costly work needing to be done (but be transparent about what needs to be done when you go to sell).
- You have a teen driver and the car in question has needed frequent repairs – it’s best to get them a car with a warranty and current safety features.