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To repair
or replace? That is the question.
Fix That
Ailing Car or Replace It? Tips to Help You Decide
While
you’re out at your favorite dealer pining for the sleek, new
vehicles on the showroom floor, “old faithful” is probably
parked in your driveway, longing for new tires and a brake
job. But she’s paid for. And so the story begins.
When an
aging car needs repairs, drivers often take the quickest
route to their nearest new car dealer. But what if you spent
your down payment on your old car, instead, and made it
serviceable for another year or two? Today, more owners are
fixing and driving their older cars. Average car ownership
is up to 9 years—the longest it’s been since the early
1950s.
There are
plenty of pros and cons to consider when deciding if you
should repair or replace. Here are some points in favor of
repairing:
-
No
big car payments (an opportunity to save for the down
payment on a future new car purchase)
-
Less
sales tax to pay
-
Lower
insurance premiums
-
No
major depreciation (a new car loses an average of 25% of
its value when it leaves the showroom, and 40% of its
value in four years)
-
You
know your old car’s problems and quirks—that’s not true
if you buy another used car
Of
course, there is a point of diminishing return to every
financial decision. Changing cars is no different. If the
cost of the combined repairs far exceeds the value of your
old car, chances are you should trade up. Consider the
following pros regarding a new car investment:
-
You
may need a new car if your lifestyle (family size,
business, recreational interests) changes to the extent
that “old faithful,” even if fully restored, would no
longer meet your needs
-
If
your car needs several major repairs, such as both
engine and transmission overhauls (possibly as a result
of neglected maintenance), a new car may be best
It also
may be best to buy new if:
-
Body
and interior repairs would be costly even if the
mechanical systems could be restored for a reasonable
price
-
State-of-the-art safety features and the highest
possible fuel economy are important to you
-
It
means a lot to you to have a new vehicle parked in your
driveway
In the
end, you are the only person who can put pencil to paper and
decide if it’s time to buy a new car. |
