Is it Time to Replace your Old Banger with Something Newer and Shinier?
It happens to the best of us: you love your car, but it’s getting on in years. You suspect it’s starting to cost more to maintain than it cost you to buy. Should you keep on repairing it or just replace it? It’s not difficult to make the call. In the end, it simply comes down to maths and taking a good, hard look at your personal situation. These two factors should drive your decision. So, how do you assess whether to stick with your tried and tested ride, or swap it for something new?
How Much are you Paying in Maintenance?
The biggest question is how much you’re spending on repairs. If you’re paying fifty pounds a month in regular maintenance, that’s less than any new car payment would be, even if you bought a dirt-cheap second-hand vehicle. Your current car is paid off and completely yours, with your only related outgoings being fuel, insurance and upkeep. Unless your fuel and insurance costs would be significantly cheaper with a new vehicle, then it doesn’t make sense to buy a new car.
If your car isn’t completely paid off, it’s a slightly more complicated call. If your maintenance costs are higher than another vehicle with a similar price plan, you might be better off getting a new car.
How Much do you Pay in Repairs?
The first question to ask is whether the repairs cost less than a few months’ car payments on a new vehicle. If repairs are less than a single month and your car is paid off, keep your car. If it’s less than a couple of months and you think you can go a few months without additional repairs and maintenance, it still makes sense to pay for repairs. However, where expensive repairs are needed every few months, it might be time to replace your car. If you pay 300 per month for a new car, compared to 1200 in repairs every four months, get a new vehicle.
Is the Repair Less than Half of the Car’s Market Value?
If the answer is yes, then do the repair. If not, it doesn’t make much sense unless repairs can be spread out over a period of time to make the cost worthwhile, and they make the cars trade-in or sale value significantly higher.
How Long Will the Repair Add to the Life of your Car?
Even a car that’s only worth 2000 might be worth getting a 1500 repair on if the repair will extend the life of the vehicle and you really want to keep it. However, consider whether you would save money over the car’s newly extended lifespan by shelling out, or whether you would be significantly better off getting a new car which required only regular maintenance.
If you still can’t decide, take a look at ACGO Auto’s detailed calculator, which can help you to weight the costs of keeping your car versus buying a new one.
How Much is your Peace of Mind Worth?
A newer vehicle could break down too, but odds are that it won’t. It’s worth considering the softer costs that come with owning a newer car. If you look for a reputable trader on a site such as Exchange and Mart, you can find a vehicle that comes with a warranty to cover early repairs, meaning that all you have to worry about is regular maintenance. This should eliminate your weekly meetings with the mechanic, and you’ll probably get a safer, more up-to-date, more fuel-efficient vehicle into the bargain. A new vehicle will almost certainly be more dependable than your older one, so that you don’t have to worry about breaking down and being stranded at the side of the road. Dependability and reliability are worth a lot, mentally and emotionally at least.
On the other hand, if you have a good mechanic and your maintenance and repair costs are low, your current car might be just as reliable as a newer one. The average age of a car is over 10 years now, the highest it’s ever been, and with the right care and maintenance yours could last as long or even longer. In the end, it comes down to what you want once you have all of the facts and figures at your disposal: new or old?
