Sometimes it’s difficult to know whether to replace your old car or just continue to repair it. While your car may have a lot of sentimental value, it is not always the best financial decision to keep it. But, how do you know that it’s time to get a new car? Here are some factors that you should consider.
The Cost of Repair is Greater than the Value of the Car
Depending on the severity of the car repair, it may not be worth fixing. Some major repairs may exceed the value of the car itself. Typically, the older the car is, the more expensive the repair costs. This is due to many factors, including the cost and availability of the parts needed. As the car ages, it becomes costlier to repair.
The Cost of Future Repairs
Sometimes you can get away with a quick fix, but it may not be a long term solution. How expensive will future repairs be? And how necessary are these repairs going to be? If the cost of a future repair is going to be high, it may be worth getting a new car. You should go to your local garage and get a quote for the repair. You can also ask your mechanic their personal opinion since they are an expert on car repairs.
Sometimes a major factor in deciding what to do with your car is how dependable it is. Can you drive around without worrying about getting stranded? Or, do you constantly fear the car dying while you are out?
Car Value: Repaired vs Not Repaired
It’s also worth calculating the value of your car now against the value when it’s repaired. This can affect your car’s resale value. Once you have figured out what these values are, you can decide if you want to repair the car and sell, repair the car and keep driving it, or sell it as is. It’s an important decision, so crunching the numbers are worth it.
One benefit of a new car is all the new safety equipment that comes with it. New airbags, seatbelts, etc. Newer car models will also have advanced safety equipment standard: side airbags, anti-lock brakes, rearview cameras, and other features. Having these new safety features can save your life. They also may reduce your car insurance costs since you will have a lower injury risk.
One way to figure out whether it’s worth getting a new car vs. repairing it is to compare insurance costs. Calculate your current insurance cost against the rate of a new car. New cars will usually qualify for more safety-related discounts. It’s also worth speaking to your auto insurance agent about this. Some coverages related to your old car can be reduced since the value of the car may be lower. If that’s the case, you may be able to adjust your current insurance rates. Learn more about auto insurance here.
Has your lifestyle changed recently and how does that affect your car? For example, if you are planning on having children, you may want a car to accommodate your growing family. Or, have you moved to a particularly cold and icy region? Then you may need a car that handles well in wintery conditions.
This is a tricky situation, but at the end of the day, you want to make a decision that will work best for you and your life. Only you know the best thing to do. You can also ask your local car repair shop for their input. Additionally, talk to your car insurance agent. They are familiar with your car history too, and can give you valuable input about your insurance rates in various situations. After doing some research, then you should be able to come to a conclusion on what to do.
Call an Encharter agent at 888.754.8299 to discuss your insurance rates and any other questions or concerns you may have!