If you are growing tired of driving around your old car, then you might be considering the option to buy a new one. Before you decide to spend tens of thousands of dollars on a new vehicle, however, it is a good idea to carefully consider whether or not it is worth it to take on the new debt. Even if your existing car is paid off entirely, you could be saving money by buying a new one. However, you will need to do some number crunching and take some important factors into consideration if you want to determine your best course of action.
Consider Fuel Economy
One way in which you could actually save money by purchasing a new car rather than keeping your old one is through fuel savings. New vehicles these days are surprisingly fuel efficient; this is becoming true even of larger vehicles such as truck and SUVs. Therefore, if you are driving an old car that gets under 20 miles per gallon on average, then it may actually save you money in the long run by replacing it with something that gets 30 miles per gallon or more.
Think About Maintenance Costs
While having a car paid off can be a great way to save money on transportation, it is also important to factor in regular maintenance costs when determining whether or not it may be time to replace your vehicle. While regular preventative maintenance such as tire rotations and oil changes are not a big deal, larger repairs are. For example, if your existing car ends up with a transmission problem, that could easily cost thousands of dollars to repair. Even once that is repaired, you could run into more maintenance issues down the road. When the repairs get to be that expensive, it is often better to purchase a new car instead of sinking money into maintenance.
What About Buying Used?
Another way in which replacing your existing car could make financial sense is if you are able to find a great deal on a used car. After all, used cars typically cost significantly less than brand new vehicles and can still be plenty reliable and come with low mileage.
By taking the above factors into consideration, you should be able to determine whether or not it is a financially sound idea to replace your existing car. If it turns out that you would like to replace your vehicle, be sure to browse car multiple car dealerships. If you live in Durham NC, for example, look at dealerships like to find the car that is best for you.
Marlena Stoddard writes on personal and family finance. Originally from Senoia, GA, Marlena lives in Santa Rosa, CA with her husband and 2 children. If you live near Durham NC, Marlena recommends the professionals at Nichols Dodge to help you find an affordable vehicle.
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