More often than not, the case for keeping and repairing your current vehicle is much stronger than purchasing a new or used vehicle. We'll dive into the details below!
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Are you repairing or selling your car?
So you find yourself in a situation where your current vehicle is starting to show signs of age and looming (perhaps expensive) repairs are on your plate.You're wondering if it's worth reinvesting in your current car or if it's time to say goodbye and consider buying a new one.If this sounds like a situation you are currently in; no need to worry! Below we outline some important variables to consider so you can make a good financial decision.
1) HAS YOUR VEHICLE ALREADY PAID FOR?
If jour car is already paid for, except insurance, gas and general maintenance, no need to worry about recurring payments.Buying a new vehicle requires a down payment, monthly fees and interest!In most cases, the savings from keeping, maintaining and repairing your current vehicle far outweigh the cost of a new vehicle. This applies even if you buy a used car.
Another benefit of keeping your current vehicle is that it is yours! If you participate in a monthly payment on a new or used vehicle, you still do not own the vehicle until the loans are repaid.If your vehicle is paid off, you don't have to worry about that stain on the seat or the dent you found on the screen.Family cars are often subject to wear and tear, but in an old car it's nice not to have to worry so much about vinyl scratches from sports equipment or stuck gumballs.
If you are planning to purchase a new vehicle; the value of that asset drops by as much as 40% from the moment you drive it off the parking lot. New car prices have risen since the pandemic, as have used car prices due to demand. Americans drive more these days, with studies showing that commuting has increased. With preventive maintenance, your old car can last quite a long time.
2) your car is built to go a quarter of a million miles!
If you think your vehicle is "old," think again. According toNew York Times,if your car was built in the last few decades, it should be able to go more than 150,000 miles(provided you perform regular maintenance).
According todigital trends,the reason for this longer vehicle lifespan involve replacing belts with chains, uniform production with robots, installing better electronics, introducing fuel injection systems and improving synthetic oils.
“Every new car today is built to last a quarter of a million miles, but in addition to that capacity you have to pay more attention to maintenance.”
Mike Calkins, technical services manager at AAA
3) you save on your car insurance premiums
As the value of vehicles decreases with age,your older car often costs less to insure than a newer car.Plus, as your car ages, it becomes cheaper to replace it in the unfortunate event that it becomes totaled. So you do not need to take out additional insurance, such as comprehensive coverage or collision coverage.
4) USED VEHICLE PRICES HAVE INCREASED OVER 40% SINCE THE 2020 PANDEMIC
In addition to hitting our wallets at the supermarket, it has also had a huge impact on car prices! This is attributed to production declines and a global shortage of microchips. This is evident from a CNBC reporta used vehicle that cost $20,000 in 2019 would now sell for $28,000 in 2023.
Unless you're sincereneedis a new or used vehicle, it is advisable to wait to avoid these horrible inflation premiums. When buying a new car, most financial planners recommend youDo not spend more than 15% of your monthly income (after taxes) on all car costsincluding the vehicle, petrol, maintenance and insurance.
When it comes to buying a used car, we all know someone with a used car nightmare story, so we've highlighted itTop 7 Things to Consider Before Buying a Used Car.
5) interest rates have skyrocketed!
According to a recent CNN reportthe average interest rate on new car loans was 5.70% in the third quarter of 2022.This is one of the main factors driving Americans to keep their cars longer; In fact, the average car on our roads today is over twelve years old – a figure that is expected to rise in the coming years. Unless you pay for a vehicle directly, the cost of borrowing a new loan will far outweigh the cost of maintaining and repairing your current vehicle.
here's a report on the most used cars with over 200,000 miles
If your circ*mstances force you to sell your current car and buy a new one. This report should give you an indication of which vehicle makes and models will last the longest!
VEHICLE | IMAGE | FUN FACT |
Ford F-250 |  | Ford's F-Series has been America's best-selling truck for four decades |
Chevrolet Silverado 2500 |  | Millenials are buying the most trucks these days! |
Honda agreement |  | The Accord has been selected as one of the Top 10 Best Cars by Car and Driver magazine a total of 27 times - more than any other car. |
Subaru-erfenis |  | Always a boxer engine |
Honda Odyssey |  | Was based on the Honda Accord platform when first introduced. |
WHETHER YOU KEEP YOUR CAR OR GET A NEW ONE - KEEP IT LAST!
All car manufacturers offer vehicle owners, you and me, maintenance plans designed to ensure the vehicle lasts as long as possible. Most maintenance intervals are every 10,000 - 25,000 km. You can switch to anyoneIntegrity 1. Automotiveand simply request your service plan. Our service advisors will have it printed for you in no time!
General maintenance goes beyond regular oil changes. There are a variety of belts, hoses, electrical components, suspension components, connectors and...liquidswhich is expected to be inspected and/or replaced over time.Failure to maintain these components is often the cause of complex and expensive repairs.
If you plan to purchase a used car, it is highly recommended to have a pre-purchase inspection done. It is a thorough inspection that ultimately aims to inform you of the exact condition of the potential vehicle you are planning to purchase. At the end of the inspection, you will know exactly what you are getting into regarding the existing condition of the vehicle, in addition to any possible warnings of future problems that are likely to arise.
