Financial experts will always tell you to buy a used car instead of new ones. Cars depreciate the most in the first two years of use, so you can get used cars for less than their true value after only two years. Used cars require cheaper insurance policies, and they have lower taxes, too. However, a car dealer F&I agent would tell you that new cars are more advantageous because they have factory warranty, they have no history of mechanical errors and accidents, and the maintenance costs are kept to a minimum during the first two to three years of a car’s life.
Your Old Car Is Bleeding You Dry in Terms of Repair Cost
Even the latest car models will require frequent and expensive repairs. As cars age, the repairs will be more expensive. If your old car is costing too much to maintain, it might be time to invest in a new one. For example, a new car will cost $400 a month on a mortgage, but your used car is often in and out of the car repair shop. In the last 12 months, how much did the repairs cost you? If the repairs cost $1,000 a year, then maybe it’s not yet time to change your car. But if the repairs amounted to more than $3,500, that’s a good enough measure that a new car is worth it.
Your Old Car Is Spending Too Much Time in the Shop
How practical it is to keep your old car if it’s constantly in the repair shop? If the car is spending a week or two every month being repaired, you don’t only have to think about the cost but the inconvenience of not having your car with you. Reliability is important in a car. Maybe you’re saving a couple of hundreds of dollars in a month by not buying a new car, but an unreliable car is more of a problem than a practical decision.
Your Old Car Doesn’t Have Safety Equipment
Cars today have safety equipment such as brake assistance and parking assistance. If you have the same car in the last 10 or 15 years, you won’t be enjoying the same benefits and features as the cars of today. Improvements in technology welcomed airbags, antilock brakes, forward collision warning, and a backup camera. All of these are not available in old-model cars, so that could be a trigger for you to purchase a new one. If you think your family is safer with the kind of technology cars have now, then the cost shouldn’t stop you from trying to buy one with all the important features.
Your Old Car Doesn’t Fit Your Lifestyle Anymore
A compact sedan is okay when it’s just you going to work every day. But a few years down the road and you find yourself with a partner and a couple of kids. That trusty compact sedan has shrunk before your eyes. You couldn’t fit in the car seat, stroller, people, dog, and grocery. Surely, now is the time to invest in a new car?
After all that has been said and done, the important thing is knowing and recognizing when you can afford to buy a new car. Practicality must win as a reason. Your old car might not fit your lifestyle anymore, but you don’t have to get into a huge debt if you can’t afford it for now. Wait a while. Save. Look for the best deals. Then, make your decision. Never hurry.