You have been driving your car for 10 years. Congratulations! Did you know that the longer you drive your car without making any huge payments, the more successful you will be financially in the future? Well, there are many studies on it, but to be honest, we don’t see the appeal.
When your car turns as old as your grandpa, then it’s time to sell it! Period.
Now hear us out — keeping up with loan payments is not easy and with increasing interest rates, you might find yourself in a dilemma. However, if you are having too much trouble with your car, then what’s the point of having it in your life? Here are six signs that will convince you that it’s time to trade your old car for a new one:
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Too Many Repairs
If car repairs have become a regular part of your weekly routine, then ding, ding, ding.
Here’s how you decide if it’s time to sell your old car:
A new car costs $5,000. The monthly payments for this car are $417. Now you have a benchmark to compare your car’s repair costs. Let’s assume that you have had 3 repairs done on your car that cost you a total of $1,200. If you compare this cost to the cost of the new car, then you can clearly see that you can stick with your old car for 2 or 3 years more. If the repair cost had been somewhere between $3,000 and $3,500, then you are better off with a new car.
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Less Safety
New cars come equipped with the latest safety technology such as GPS, backup cameras, rear and front collision warnings, lane assists and airbags. If you no longer feel safe in your car then better be safe now than sorry later.
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Extra Commute Cost
Let’s say that you need to get done some major repairs on your car. You take your car to a mechanic shop and are told that it will take about a week for it to be fixed. Yes, repairs are a major cause that indicates you need to change your car, but the downtime in the shop is a close second. Without a car, you will be commuting through taxis and public transport, which means more money out of your pocket.
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You Can Afford a New Car
For a minute, forget about the tape that’s holding your car or the repairs. Can you afford a new car? Maybe, you got a promotion and to celebrate your success, you want to do something big. We suggest buying a new car because it offers future value guaranteed!
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The Car Does Not Fit Your Lifestyle
As a bachelor, you owned a 4-seater compact car, but now that you are married, an SUV might be more suited to your lifestyle. From your neighbourhood to occupation and personal needs, there are many things you need to consider before changing your car.
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The Car’s Interior Is Crumbling
If your car has torn and ripped fabric, holes in the door and floor, a leaking roof and window knobs that fall off, then you definitely have to replace your car. You clearly can’t drive a car like this!
So, there you go — six perfectly reasonable signs that tell you it’s time to replace your worn-down car. Look at your finances and then decide what type of car you can afford. It is better to buy a brand new car than a used one.
