“When should I replace my car?” A simple question asked by thousand, if not millions, on a daily basis. But the answer requires more factors than just a cars age and mileage. Let’s look at some of the factors.
Cost of Maintenance vs. Cost of Purchase
Many people compare the cost of continually replacing parts or bringing your car in for service to the purchase of a new car. Not a poor comparison, but it’s not the only thing to consider. A more fair comparison is cost of ownership.
A paid off car that requires some maintenance does have its advantages, for instance insurance is typically much cheaper on an owned vehicle. This alone can save you hundreds each year. Not to mention if you do get a new car lack of maintenance isn’t a guarantee. Depending on your warranty you may have to come out of pock for some repairs and new parts can be more expensive to replace.
Aside from insurance and repairs there’s a bigger cost factor, monthly payments versus no payment. Sure it’d be great to pay for a car outright, but not everyone has that luxury. A down payment, tax, title, license plus additional monthly payment and loan interest can certainly hamstring a budget.
However, like the answer as we alluded to in the beginning this isn’t black and white. And as with any of your car questions or issues we’re always available to lend a helping hand or listening ear. So stop by or call 641-782-2181, if you have any questions on whether you should start the shopping process or need to think about another repair.