It’s normal to want a new car. I know I’d love one, but instead, I keep driving my old one. There are good reasons to buy new and not to buy. So, if you’re wondering should I buy a new car or keep my old one read on for the pros and cons of both options.
Should I Buy a New Car or Keep My Old One
Let’s take a look at why keeping your old car is a great option.
1. You Don’t Have Car Payments
I haven’t had a car payment in about four years.
My car is paid off, and this is one of the main reasons I haven’t bought a new one.
I don’t have to pay all of that interest that comes with new cars, and I save hundreds of dollars a month.
Even if something goes wrong with my car, it is much less expensive to have it repaired than to pay hundreds of dollars a month every month.
2. You Can Save Up for a New Car
You can save a substantial amount of money by not having to pay for the new car.
I know it isn’t always easy, but if you can set the money aside that you were using to make car payments before your car was paid off, you can have most if not all of the money you need to pay for your next car.
Being able to pay cash for a car is great.
It gives you a lot of freedom from car payments.
And then you can start the cycle again setting aside the money you would have paid for a car payment.
3. Repairs Will Typically Be Less than a Car Payment
If you take care of your vehicles, then hopefully you won’t have a lot of expensive repairs.
Typically, your repairs will be less than a monthly car payment.
Nowadays, cars last for a very long time and even with a couple of hundred thousand miles on your car, you can still be driving it down the road.
With good maintenance chances are you won’t have too many if any expensive repairs.
5. You’ll Save on Insurance
If you’re a good driver and your car is older, you may find that insurance prices are less expensive than for a new car.
If your car is paid off and on the older side, you can reduce your insurance coverage.
Keep in mind that if you do and you’re in an accident, the insurance company might not pay to have your car repaired.
The Top Reasons to Sell Your Old Car and Get a New One
Keeping your old car is not always the right decision.
1. It’s Breaking Down all of the Time
If your car keeps breaking down, that could very well be a sign that you need to buy a new one.
It could also mean that it’s time for an expensive repair that would cost more than what the car is worth.
They say if your vehicle repair is going to cost you 50 percent or more of the value of your car, then you should buy a new car.
2. You Can Afford a New Car
If you really want a new car and you can afford it, then why not?
Sure, it will cost you more and you will have a monthly payment, but if it is in your budget and won’t make paying your other bills difficult then go ahead.
You just don’t want to stretch yourself too thin.
3. You Have a Good Downpayment
Experts say you should put down at least 20 percent when buying a new car or truck.
If you do, it will be easier to get financing and your monthly car payments will be less.
That means if you are going to buy a $25,000 dollar car, you should have $5,000 for a downpayment.
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4. You’ve Found a Great Deal
Sometimes a really good deal falls into your lap.
If that’s the case, then you need to strike when the iron is hot.
Otherwise, you will miss out and be kicking yourself down the road.
Great deals don’t come around very often, so when one does, jump on it before it is gone.
5. You Don’t Have a Lot of Debt
If you have a lot of debt such as credit cards, personal loans, or a student loan, you should try and get as much of this debt paid off before you take on more.
If you don’t have a lot of other debt, then now might be a good time to buy a new vehicle.
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To Sum it All Up:
It makes sense to keep your old car as long as you can once it is paid off. You’ll save money each month. However, if your old car starts breaking down too often and the repairs are getting really expensive then it might be time to buy a new car. Just make sure you have a healthy downpayment before you do.