Should you keep your old car or buy a new one.
Are you sure you need a new car? I'm sure you want the newest
safety features and modern styling that a new car offers.
Perhaps you need a larger vehicle to fit your growing family.
You probably feel that your old car no longer fits your life.
But how about cost?
>From an economic perspective, you're better off keeping your old
car. It could save you thousands of dollars. Taking better care
of your current car may make much more sense in the long run.
You're probably thinking - those repair bills are really adding
up. But the cost of repairs will never exceed the cost of a new
car. Changing your oil, replacing brakes, belts, and hoses are
nothing compared to monthly payments on a new car. Even costly
repairs like rebuilding an engine makes good financial sense.
If you've paid off your car, it is still in great shape and
needs only a few modest repairs, there's no need to throw it
away. Enjoy your freedom from car payments. Enjoy lower annual
taxes, insurance rates and license fees on your old car. Buying
a new vehicle would mean several years more of monthly principle
and interest payments on a loan.
You can feel secure knowing that modern vehicles last longer.
Not too many years ago, a vehicle's useful life did not exceed
100,000 miles. Today, many vehicles can breeze right past that
100,000 mile mark with no more than a tune-up, or maybe a new
timing chain or fuel pump. Older cars generally cost more to
maintain and are more likely to break down. Repairs can be
frustrating and expensive. But on the other hand they're cheaper
to own and operate. They lose most of its value in the first
five years of their life. Your used vehicle won't depreciate as
much, saving you thousands.
Unless you're rolling in cash, I'd say keep your old clunker.
Comfort yourself knowing that one day you'll be able to easily
afford that costly new ride.