The other big decision regarding older vehicles is when is it time to stop repairing and buy a new vehicle. People insist they would rather “drive their used car into the ground” rather than take on new car payments. However, in some cases, purchasing a new car may actually be the less costly way to go.
1.) If the monthly repair bills exceed a new(er) car loan payment
2.) When the used car needs major work, such as a transmission or engine fix which may cost several thousand dollars with no guarantee that the car will be as good as new
3.) When the car has high mileage and may not have a lot of life left as evidenced by a mechanic
4.) When you’re spending more and more time and effort on constant repairs
If any of the above applies to the situation, it may be time to walk away from the old and consider the new purchase.
For information about insuring you're new car, check us out at agordon.com and watch a few of our whiteboard videos. Learn more about your automobile insurance options here.