So you have arrived at a crossroad where you have to decide between scrapping your vehicle or repairing it. It’s a tough decision to make because both options can come back to haunt you financially at a later stage. Investing in a new vehicle is costly, but repairing an old vehicle thats needs a lot work done can also be an equal or even bigger financial setback. A new car is not exempt from unexpected mechanical failures, and you can easily expect plenty of ongoing mechanical failures if you keep and repair your old car. So how do you decide whether to scrap or keep? Here are a few tips to help you make up your mind.
Consider Maintenance vs Monthly Car Payment Cost
An easy way to tell whether it’s time to scrap or to repair your old car is by assessing the maintenance costs from the past few years of your old car.
How much did you end up spending on your old car in the last two or three years? Keep a record of this figure and try to include the amount that is needed to get your car fixed right now. Divide the full amount into 12 and you will know exactly how much you are spending on a monthly basis. Now go to an auto dealer and establish what a monthly car payment will be on a vehicle that is new or newer than your old car.
If your maintenance expenses are higher than a new car payment, then it might be worth getting an upgrade and you can even end up saving money.
The insurance cost of newer vehicles can be higher than the insurance cost of your old car. In fact, many old cars are not even worth getting very comprehensive insurance for, as you can easily enjoy a lower cost third party insurance premium that covers you in case you damage someone else’s vehicle. Keep the difference in insurance rates in mind before you start shopping for your next vehicle.
If you are considering buying used, then you need to consider the risk of your newer car also having issues. Are these possible issues worth the risk, or should you just stick to the maintenance and repairs that you are already used to?
Some older vehicles are still popular and sought after, meaning the value of your old car might be significantly higher than the value of a newer used car in a few years. It might be worth holding on to your retro car if you have something unique.
Your old car is bound to break down again and again. Vehicle failures can affect your ability to be on time for work, and it can also be dangerous to get stuck on the side of the road after your car breaks down. Consider the risks and inconveniences of being late from time to time compared to the ease, safety, and reliability of a new car.
Old cars often have a lot of repair requirements, and there might just not be enough money available to get your old car fixed. In these cases, a lower car payment over a long period of time might be a much more comfortable solution.
If you do decide to get rid of your old car and to invest in a newer vehicle, then give us a call for a free scrap car disposal.