Is your car getting a little old? Does it need some expensive car repairs? This is when most people start asking themselves if it\u2019s better to repair or replace. Car experts can often provide great advice in this area, and here I\u2019ll summarize the best tips I\u2019ve found to help you decide if the time is right to buy a car.<\/p>\n
Money is usually the primary deciding factor when deciding whether buying a new car<\/a> is the right move, or if it\u2019s better to take care of those needed car repairs and hold off for a little longer on the new car. I\u2019ll get to that, as it\u2019s obviously important, but often people overlook another factor that matters too \u2013 how much they value their current vehicle.<\/p>\n Aside from classics, which owners will usually repair indefinitely, every car has a limited lifespan. Still, if you have a car that you really love, you might be willing to overlook occasional car problems. If you\u2019re driving your dream car, there\u2019s nothing wrong with holding onto it a bit longer, as long as you can afford regular auto repair.<\/p>\n Aside from loving your car, there are a number of other reasons you might want to hold on to it.<\/p>\n When you start asking yourself, \u201cShould I get a new car?\u201d these are some reasons you might say, \u201cYes!\u201d<\/p>\n It\u2019s not always easy to decide whether or not to buy a new car<\/a>. Following the tips above will make it easier and, whatever you decide, you can feel confident that you made a good decision.<\/p>\nReasons Not to Buy a New Car<\/h2>\n
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\n<\/strong>If your car is paid off, you might not be ready to take on a car payment. Often, automotive repair a couple times a year will cost less than a new car, so do the math. Look at the cost of recent repairs, and the cost of any anticipated repairs. If you\u2019re not a car person, having a mechanic you trust look over your car will point out potential problems so you know what to expect in the near future. If the expected annual repair costs are significantly less than 12 monthly payments on a new car, it might make sense to wait another year to buy.<\/li>\n
\n<\/strong>If you don\u2019t need to repair your car often, but it needs one or two repairs, consider fixing it. You should ask yourself how the repair costs compare to the monthly payments for a new car. If it\u2019s less than a few monthly payments, that weighs in favor of keeping it. Also look at its current market value \u2013 check Kelley Blue Book<\/a> or Edmunds<\/a> \u2013 and compare that to the cost to repair. If the repair costs less than half the car\u2019s market value, fixing it might be a good idea.<\/li>\n
\n<\/strong>This may or may not be the case, depending on what you\u2019re driving now and what you\u2019re thinking about buying. It\u2019s very likely, though, especially if you are currently only carrying liability coverage. Unless you\u2019re buying your car outright, you\u2019ll have to have comprehensive and collision coverage too. Add the annual insurance rate to your 12 monthly payments and again compare this to your expected repair cost (plus 12 current monthly payments if applicable). If the repair cost is quite a bit lower, it again might make sense to wait.<\/li>\n
\n<\/strong>Fix or replace? Car people might find the decision a little more complicated. The ability to do the repairs yourself can reduce costs significantly, but if it\u2019s something you hate doing, you\u2019ll likely procrastinate on less urgent repairs, potentially causing more problems. If you don\u2019t love wrenching on cars, don\u2019t try to convince yourself that you can do it.<\/li>\n<\/ul>\nReasons to Buy a New Car<\/h2>\n
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\n<\/strong>Most people will feel at least a little sting with the expense of a new vehicle, but if you\u2019re one of the lucky few who won\u2019t, there\u2019s nothing wrong with getting a new car just because you want to.<\/li>\n
\n<\/strong>If you have a job where you can\u2019t afford to break down, no matter how infrequently, this is a strong reason to buy. Car repair expenses aside, if your livelihood requires it, a new or newer vehicle is probably in your near future. Consider how reliable your car was before it needed repair, and whether you expect the needed repairs to get it back to that same level of reliability to help with the decision.<\/li>\n
\n<\/strong>If you\u2019ve done the calculations we discussed and find that it\u2019s going to cost you more to keep your current car on the road than it would to get a new one, it\u2019s probably a pretty easy decision to buy now. If repairs will cost less but it\u2019s fairly close, it\u2019s still worth considering a new car \u2013 your repair costs are just estimates, after all, and there may just be some repairs that you\u2019re not prepared for.<\/li>\n
\n<\/strong>This is a good sign that it\u2019s time to replace your vehicle. Remember that the older your car gets, the more repairs it will need, so this one\u2019s only the beginning. It\u2019s probably not worth repairing your car in this situation. Even a more recent model used car would be a step up if new isn\u2019t in the budget.<\/li>\n
\n<\/strong>Safety should always be a top priority. If your car is old enough that safety is a concern, it\u2019s time to replace it. Keep in mind that breaking down on the road is a safety issue too, so if this is a common experience, replacing your car should be a priority.<\/li>\n<\/ul>\n