After another costly trip to your mechanic you begin to wonder if the repairs are worth it, or if you’d be better off buying a new car. There are a few things to consider before you say goodbye to your car, and it's not always best to buy new. When deciding to keep your older car or buying a new one, here are a few things to consider.
Do You Really Need to Keep Up with the Joneses?
In the social media world of today, there’s pressure to keep up with the lifestyle of your friends. Many people may find themselves browsing the online inventory from local dealerships after seeing pictures of shiny new cars in their social media feeds. For some, the fresh, clean smell of a new car is worth the price of entry on its own.
But a new car has more benefits than a shiny coat of paint and luxurious interior. Compared to an older vehicle, they’re packed with the latest safety equipment and often have better crash ratings. New cars shouldn’t need any major repairs for several years of their life, and they are covered by a new car warranty if they do. Surprise repairs to aging parts can be a real headache, and the mechanic bill can equal several new car payments. While it’s not a good idea to upgrade simply because your friends have, there still comes a time when we need to part ways with an old ride.
When Is It Time to Say Goodbye?
Figuring out when to fix and when to say goodbye to your car only takes some simple math. However, getting the numbers requires a bit of research. Consider how much your old car might be worth without repairs and then calculate whether repairs would increase its value at all. There are several online tools to help figure out your car’s value, but Kelley Blue Book is considered the industry standard. This resource can help you discover the retail value of your car, with and without repairs. If the repairs equal about the same as the increase in value, then it’s probably worth keeping your car. If the repairs cost more than the value added to your car, it's time to consider an upgrade.
Another consideration should be any car loan you haven't paid off. If selling your car won't cover your old loan, adding a new one will only make things worse. Instead, try buying an extended car warranty for protection while you pay off your loan's balance.
Cars that are only a few years old, and just past their new car warranty, don't need to be replaced. If your car is still reliable, and maintenance is reasonable, there are extended auto warranty options available to you. They provide great protection against maintenance costs once the new car warranty expires.
Extending Life with a Warranty
There are definite advantages to keeping your older car. You’ve already paid for the depreciation and maybe your average maintenance costs over the year are somewhat reasonable. So, you might actually be paying less for your trusty vehicle than you would with monthly new car payments. You can protect yourself from major repair bills outside of the manufacturer's warranty with extended protection. Protect My Car is an industry leader that has helped tens of thousands of Americans keep their cars going with an extended auto warranty. Avoid surprise mechanic bills and save your money instead of spending it on repairs.
When your older car surprises you with a high bill at the mechanic, you should consider whether to repair or replace. Check the value of your old car and compare it to the repairs you need. Do the repairs add value to your car? In many cases, you can avoid costly surprise repairs altogether with an extended car warranty. Start saving money and extend the life of your car with extended protection from Protect My Car.