Should I Fix My Car or Replace It?

November 2, 2020

Are you tired of pouring money into an aging car? Do you have a high repair cost and wondering if you should invest in a new vehicle? A new car would be nice, but it’s a big expense… is it worth it right now? There’s no straight-laced answer to these questions, but there are things you should consider when contemplating whether to get rid of your car or keep it.

Fixing It Up

Buying a car isn’t a quick decision to make- since it’s such a big financial move, it’s important to weigh facts. Can you afford it right now? Will it put you in extreme debt that you can’t handle right now? Check out these reasons why it may be smarter to fix up your current ride.

  • Repairs are almost always less than buying a new car. Let’s say that your transmission or engine went out. That’s a hefty price of anywhere between $2,000-$7,000 to replace. Still, that isn’t as much as buying a new car. You’re probably thinking that you could put that money toward a down payment–but have you considered the monthly payments on a new car? Even if you purchased a used car for $5,000, the chances of it having issues is high given the low price of the vehicle. You pay for what you get.
  • Insurance and registration costs are higher on a new car. If you’re driving around your old 1999 Honda, you’re practically paying nothing when it comes to insurance and taxes. But buy a 2018 vehicle and it might come as a shock to you with how much you’ll be paying. It’s something to consider.
  • A new car takes about a 22% depreciation hit within the first year- your car has already taken that hit and has evened out. When you buy a new car, its value drops significantly.
  • So you weren’t planning on buying another car for another year or two? It may be better for you to repair it now while you continue to save up more money for a newer car. It may be too early for you financially to make the hasty decision of purchasing a new vehicle earlier than expected.
  • Let’s say you have an emotional attachment to your car because you’ve had it since you were 16, it was gifted to you or you saved up for years for it. You may want to keep it going for as long as possible. In that case, getting it fixed up may be worth it to you.

Buying A New Car

Let’s say you’ve put thousands into your current car and during the last repair you said it was the last time you were going to invest in your car. That may be true, but buying new can be an intimidating decision. Consider why buying new might be the way to go.

  • You want peace of mind. Maybe you were used to frequent breakdowns when it came to your old vehicle – and you want to be able to drive a car with the peace of mind that it won’t break down at any given moment. When you buy a new car, you will have a warranty for the first 3 years usually. That is being stress free for at least the first 3 years when it comes to maintenance issues.
  • You’re tired of going to the repair shop. Mechanics are expensive. Is it worth it?
  • You want a safer car. Let’s say you’re still driving your 2002 rattler and it’s barley turning on and coming to a stop. Newer cars have excellent safety features now and that comes with added peace of mind on the road.
  • You have the finances to do it. You don’t have to pay in full in order to have a good down payment and be able to afford monthly payments.

    Consider these reasons while you are contemplating whether to get a repair or buy a new car.

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