Your present car has either evolved into a reliable partner or is showing signs of age and disrepair. It is time to decide whether to keep your old car or replace it with a new or used vehicle. In some cases it may be cost-effective to repair your present vehicle but you have to decide if that is a wise choice.
Here are some ideas to consider when faced with this decision. Determine the operating cost of your present car. Compare to the operating cost of a new car or of a newer used car. Fuel mileage is a big factor in today's economic environment. Determine the cost of reconditioning your present car. It may need some consumable items replaced.
• a set of new tires
• new battery
• wind shield wiper blades
• belts, hoses
• muffler and exhaust system.
• brakes
• front end work, ball joints, struts
• Minor engine work such as tune up, valve adjustment, timing belt replacement.
• Body work - could turn out to be a major repair
• Paint job - paint jobs can be expensive
Major engine work I think would be a cost disqualifier to having the car reconditioned. Does everything work on the car? Are there any pesky problems such as a radio that doesn't work, electric window problems, or other little items that tend to cause you stress. Is there anything at all about the car that irritates you? If so then why invest money in something you aren't going to enjoy driving and spending time in?
After you determine the cost to repair your present car then, determine the value of the car. Use the Kelly Blue Book for Used Cars to estimate the value. If the cost to repair is more than 30% of the trade in value then I would think twice about putting money into it. On the other hand if you like the car and the repairs will give you another three years of trouble free and safe transportation then it may be a good choice to make the repairs. Keep in mind that after three years of driving your reconditioned car it will again probably need tires, brakes, and possibly other repairs. Also the trade in value will have decreased over those next three years.
If you decide to make the repairs and drive the car for another three years then set aside the cost of a payment each month and put that toward the next car that you purchase three years from now. By putting away $200 a month for three years you could save $7,200 towards the purchase of that next car. The money saved plus the value of your clunker may pay for the next vehicle in full if you purchase a used car or it could take a big chunk out of the cost of buying a new car.
Here are a few more thoughts to keep in mind to help you decide whether to buy a newer and better used vehicle or to buy a new car outright. There are advantages to buying a new car:
• It smells new
• It looks new
• It has up-to-date technology
• It has important safety features such as air bags
• It will run trouble free for the next 5 to 7 years (well it should!)
The advantages of buying a used car:
• a used car is a better buy and more affordable than a new car.
• a new car depreciates by up to 30% the minute you drive it off the dealer's lot.
• with a used car you have no fees such as dealer prep, shipping costs, new registration, licensing, etc.
• Insurance for an older car is somewhat cheaper.
• the monthly cost to drive a used car is less. The cost of the new car monthly payment alone is much more for a new car than for a used car.
After reading over these thoughts I hope you will feel better prepared to tackle your next car buying decision.
This article by Chuck Burns an avid reader of "mind stuff", and Internet publisher. Visit his website about Oil Change Coupons.
Article Source: http://EzineArticles.com/?expert=Chuck_Burns