One of the most common customer questions we get at DeBoer’s Auto is whether it’s worth it to pay a significant price to invest in their current car, or if they should just buy a new one. The simple answer is it just depends. When your car gets a certain age, there will come a time when it needs new tires, new brakes and other high ticket items. By the time all the servicing and maintenance is done, your bill could approach $3k-$5k quickly. So is it worth it to make that investment in your current car, or sell it and buy a new one? Here’s what you need to strongly consider before making a decision.
Factors To Consider When Deciding To Invest In Your Current Car
A new car today averages about $38k after you factor in dealer fees, title, registration and other fees. So when you break it down, you’re probably looking at a monthly payment of $500+ dollars to buy a new one. But if you get a loan for your $5k maintenance bill, then your monthly payment will be cut in half or more.
Here are some of the main reasons why it makes sense to invest in your current car:
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The history of the vehicle has been good and reliable
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The mileage on the vehicle is low
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It’s less than about 15 years old
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You’ve maintained the vehicle regularly
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You can see yourself driving your current vehicle for the next 3-4 years
When It Makes Sense To Buy A New Car
While there’s always going to be an initial shock when you get a vehicle maintenance bill for a few thousand dollars, the alternative of spending $38k on a new vehicle usually isn’t very attractive either. However, there are times when it does make sense to part ways with your older vehicle:
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If your vehicle is 15+ years old and has a significant amount of miles on it
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If you’re spending the same amount of money on monthly maintenance bills as you would be on a new car
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If you’ve simply outgrown your old vehicle
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If the cost of repairing the vehicle exceeds the cost of the resale value of it
At DeBoer’s Auto, we understand everyone’s situation is different. That’s why when customers ask us this question of whether it’s worth it to repair their vehicle or just go buy a new one, our answer is it depends. We hope these considerations will help you make the right decision for your situation, and if there’s any way we can help, feel free to contact us at any time.
