When your existing car starts to show its age, you may wonder whether it is more economical to repair the problems or simply buy a new one.
So just what are your options when you need a replacement vehicle?
You may ask how it can be considered economical to spend thousands of dollars on a new car when repairing your existing car may only run you to a few hundred.
But you have to consider not only how much the current repair will cost but how long it will be before another repair is needed and how much that is going to cost you.
The best way to work out whether it is time to replace your car is to do the math and work out if the repairs cost more than the total value of the car. If so, it is time to ditch it.
I knew for me I new it was time to get rid my old 1995 Chevy truck when I had realized a few things.
- First the truck was 20 years old and when it comes to older vehicles like the one I had they are going to be more likely to have issues.
- Second I knew that my truck was going to eventually face some major repairs such a transmission problems or a something with the motor.
- Finally, I also knew that my truck was going to need some new tires soon as well.
In the end when I add up all the cost and the possibilities of the unknown things that could go wrong I decide getting a new vehicle was going to be my best option.
This way I could put the money that was going to go toward eventually repairs towards a newer more reliable vehicle.
Buying New or Used
So you have decided that you need a new car, but just how new?
For most people, money is an issue so you will be looking for ways to reduce the cost of your new car.
This may mean that a brand new car is way outside of your budget, and this is not necessarily a bad thing because the moment you drive a brand new car off the dealer’s parking lot it will have depreciated in value, often by thousands of dollars. The same is not true of a used car.
However, the advantage of buying brand new is that you can have all the features you want, the color, the trim, the dashboard controls, upholstery etc.
If money is a real problem but you are keen on buying a brand new car in order to get the specification you want, then you could consider taking out a finance option with a dealer or contacting Ontario car loans to help pay for it.
A loan of this sort is usually quick and easy to arrange and comes with a competitive interest rate. Alternatives to a car loan include hire purchase plans and lease agreements.
The other option, of course, is to buy a used car.
The advantage of these is that you will not have to suffer any immediate depreciation and you will be able to find a more than adequate car at a price you can afford, whether you buy outright or take out some form of finance.
Even a car that is only six months old is significantly cheaper than a brand new model, yet will be almost as good.
The only drawback is that you will have to make some compromises in regard to specification, but for many people, this is not a real problem as many desirable features come as standard on the majority of makes and models.
You should also be able to negotiate the price with a used car dealer.
I did this when I bought my car last year. The important thing is to not look as if you need the car right now. In fact I told the dealer I don’t really need to buy the car right now.
In the end I was able to get $2000 on trade in for my truck site unseen. Now I can’t promise this will happen for everyone but it never hurts to ask.
What Are Your Options…
When looking for a replacement car, focus on your needs and your budget and tailor your choice of vehicle accordingly.
This is exactly what I did and in the end I feel it was a win/win for everyone. So did you replace an older vehicle recently? Share your thoughts, and comments below.