There could be a few different scenarios that got you into this situation: You took the car in for regular maintenance and they found a laundry list of items that need to be repaired or replaced, or Your car broke down and left you stranded again and to fix it is going to cost you over $1000. However it happened, you have arrived at the decision that you need to just purchase a new car. But did you actually think it through? Is it really worth it to get a new car or can your current car be repaired, maintained and last you several more years.
When I am asked by a customer whether a car is worth repairing or not, there are several factors I tell them they need to consider. If they were the original owners then they know the repair history, if they purchased the car used to begin with we would need to take that into consideration and how well it has been maintained along the way
New cars are averaging about $37,000, more for SUV’s and slightly less for compacts. A typical car payment would be about $400 a month. That comes to a total of $4800 a year spent on your new car. Think about the maintenance and repairs you made on your car in the past year.
You need to consider the vehicle’s mileage and current value. Check out Kelley Blue Book website to see what the car is worth based on the mileage you have. From there you can determine if the repairs are worth making.
Another item to consider, that many people forget about, is to consider your financial and credit picture. Are you in a financial situation to take on a new car payment and will you be approved for a loan.
Don’t forget that your insurance will decrease as your car ages as well, adding into what you need to consider when making your final decision.
Today’s well maintained vehicles can keep going past 200,000 miles saving you a good amount of money by not having a car payment.
Every vehicle and situation is different. Make sure that you have is assessed by your local mechanic and they can help you determine what is the best course of action.