At a point in time, the question of replacing or repairing your vehicle will be a decision you and your family will have to make. The price of a new or previously owned vehicle is costly. The average time for owning a vehicle is nine years, which is remarkable. However, this is due to the economic situation and its downward trend. Take a good look at your vehicle and the repairs necessary, the value of the car, and what type of owner satisfaction it has.
A great place to check out your vehicle is Consumer's Digest. This is available at most public libraries for free. A list of all makes and models and the repairs that have been done is available. If your vehicle is constantly needing repair and it is on this list, it might be time to consider a new car purchase.
It's Been a Good Car but Repairs are Getting Expensive
What do you do when the car you have relied on starts getting expensive to maintain? Get an idea of what it is worth. Kelly Blue Book is a great place to find both the wholesale and retail worth of vehicles.
If your vehicle is fairly old and the value is approximately $5,000 and repairs are going to cost half the worth of the vehicle, should you keep it or buy a new or previously owned car? You have been pleased with the vehicle over the years so should you spend the money to have it repaired and be prepared for more repairs that will be needed in the future. The wear and tear on a car will necessitate more repairs along the way. The choice between paying a repair bill and a payment each month for a new vehicle will depend on your budget.
What if the Repairs are Extremely Expensive?
This will depend on many factors. I once had a friend of mine who is a plumber tell me he was repairing pipes on an older home. While getting to the root of the problem, there were other pipes that were breaking. It is amazing that people are willing to spend vast amounts of money on home repairs or their old appliances and not their vehicle. I feel this may be due to people not trusting car repair shops or the people who work there. There are those who will try and take advantage of you, but a trusted repair shop will not. The mechanic can actually tell you based on his knowledge how much longer your car will be roadworthy. This is what you should find out before making a decision on whether to repair or replace.
The Price of a New Car
New vehicle prices have gone up quite a bit over just the past ten years. This is partly due to the options customers want and the performance they expect. All the options are wanted. This can cost a pretty penny when they are added in the price of a new car. So a previously owned vehicle should be a consideration.
Think about the options you need when looking the price. Is it necessary to have two DVD systems? The base for the vehicle should be the starting point and then check on the price with only the options you need - not want. Most of the car manufacturer's have this option online. You start with the base price and build your own car. This is also available at some dealerships.
Certified, Previously Owned Vehicles
Previously owned vehicles which are also certified are often auction purchases made by dealers. The large majority are from rental companies. If this is what you decide to purchase, check Consumer's Digest again and see what the value on the make and year of the vehicle for which you are interested. Remember to compare like vehicles. For example, you would not want to check a price on a SUV against a truck.
Another thing to remember, if you choose the new car option is the dealer will give wholesale price for your used vehicle when used as a trade-in. You may want to advertise and sell your car and use this money as your down payment.
Choose an Extended Car Warranty Wisely
When purchasing a previously owned or new car from a dealership, there will be some type of warranty. It may be a manufacturers warranty, a dealer warranty or a used car warranty. The type you get will need to be checked for what repairs are covered.
The Choices are Yours
The choice you make on the replacement or the repair of your car are yours. Be smart and do some research before making a decision on a new car or previously owned car.
Deciding on the life of the car if it is repaired will be a valuable tool when choosing to repair or replace. The repairs may be as high as the value so it may be best to buy another car. Payments versus the repair cost will be what you need to look at when deciding. If your decision is a new car or previously owned car, waiting for manufacturers rebates can mean a huge savings. These are normally in August and September when they are trying to move the older cars out and reduce inventory. Dealers will often add incentives for you to buy a car.
By doing research and deciding what you can afford, you can be more savvy when it comes to purchasing a car or having repairs done.
No comments:
Post a Comment