02/06/2016
Should I keep my old car and fix it up, or buy a new car?
Expressed another way, the question is this: Is it smarter, more practical, and more economical for me to keep and fix my old car than to buy another car, new or used?
This is always a tough one to answer. Generally, it’s going to be better to fix up an old car than buy a new car every five years or so.
However, the real answer depends on your particular circumstances
Older, high-mileage vehicles are more likely than newer vehicles to have problems. There are exceptions, of course. Older vehicles also tend to have more serious problems, such as engine and transmission failures, that are expensive to repair.
If so, how much is it going to cost to make the repairs? Will the repairs really fix the problems, or will they just temporarily patch the problems? Is it likely that these will be the only repairs needed for a while? Can you afford the cost?
Can you afford to buy a newer vehicle?
Can you pay cash? Would you need a loan? Do you want a new loan and monthly payments? How much can you afford in monthly payments? Can you afford to buy a car that is substantially newer and better than your old car? Can you afford possible higher insurance rates and taxes? Does your old car have enough resale or trade value to help with the cost of a newer car?
Do you want a new vehicle?
Most people would answer yes to this question — but many don’t want new car payments, or a depleted savings account either. The stronger “want” wins.
Fix or replace or your old car? One decision you can make is……..to not make a decision. At least, not now. You can simply stick with your old car until it finally dies a natural death, at which point you’ll be forced to make a decision. It might be better to wait and make a move later rather than sooner.
