Do you know what the true costs of owning an older vehicle are? Most people don’t. In general, owning an older vehicle is less expensive, but there are many hidden costs and options to consider. When the costs outweigh the benefits, it might be time to sell your junk car. While there are benefits to both sides, is your car worth fixing?
When to Buy a New Car
When should you sell your car? This decision rests on your financial situation and your values. Values such as financial standing, peace of mind, and safety are all contributing factors. This is why selling your car can be a difficult decision. It can cost a lot of money to buy a new car. However, what are the costs of keeping your old car? Let’s dive into the details to find out whether you should fix or sell your car.
Repair Costs: The older your car gets, hefty old car repair costs start to come with the territory. While fixing old cars generally cost less than a monthly payment (when averaged), they can still be quite expensive–especially depending on the make and age of your vehicle. If your car is completely paid off and the repairs are seldom, it’s okay to stick it out a little while longer. If you have monthly payments and frequent car repairs, selling your vehicle can actually save you money. In any circumstance, if the repairs are over half the value of your car, it’s time to get a new ride.
Depreciation: While this cost doesn’t immediately come out of your pocket, it will end up costing you a pretty penny in the long run. Car depreciation is the most expensive cost of owning a vehicle, and it sneaks up on you because it’s not coming out of your monthly payment. Can you imagine paying an extra $250 dollars per month for the first five years of owning a vehicle? While the depreciation is steeper for newer vehicles, any car younger than 10 years is affected by large depreciation costs.
Is it Worth Fixing an Old Car?Safety: Many older vehicles do not match up with today’s safety standards.. In fact, the safety standards have completely changed in the past 10 years. In a research study conducted by the U.S. Department of Transportation, they found that there is a significant correlation between vehicle age and fatality rates. Even a vehicle eight years of age can increase your chances of being in a fatal accident by nearly 20%. With anti-lock braking systems, lane centering assists, and hands-free Bluetooth technology, modern cars have never been safer.
Peace of Mind: If your car keeps you up at night, that’s a big sign that it’s time to sell your car. Your car should be as reliable as it is safe. If you wince every time you turn the ignition, and you’re worried that at any moment your car could give out, it’s probably time to say goodbye. Don’t let the car make the decision for you. It’s far better to make the decision before your car leaves you stranded on the highway.