If your car has started giving you some problems, you may be eyeing that new car lot down the street. If you are, you should know that are some very good reasons why you should repair the car you own right now, instead. It may seem easier, and more cost-effective, to simply replace your old car. However, that might not actually be the case. Take a look at the list provided below. Here are four reasons why it's a better idea to have your car repaired.
Stay Out of Debt
If you're thinking about trading your car in for a new one, think about the monthly payments. If your car is paid for, you're living a life that's free from monthly car payments. If you trade your car in on a new one, instead of repairing it, you're going to be in debt for quite a few years. Stay out of debt by repairing the car you own right now.
Avoid Instant Depreciation
That shiny, new car that you're thinking about buying, is priced for the value it has right now. As soon as you sign the final papers for ownership, the value is going to depreciate, which means it's no longer worth what you paid for it. Unfortunately, that means you were to turn around and head back to the dealership, you'd automatically be offered a drastically reduced trade-in value for a car that you just barely bought. Instead of dealing with the instant depreciation, have your current car repaired, and extend its life by a few years.
Keep Your Insurance Rates Low
If you own an older car, you're probably saving quite a bit of money on your auto insurance. However, once you buy a new car, your rates are going to increase. That's because new cars are more expensive to insure. Part of the reason for the added expense is that new cars are more of a target for thieves. You can continue to enjoy lower insurance premiums by keeping the car you own right now and having the problems repaired.
Give Yourself Time to Save for Another Car
If you really want a new car, let your current car help you save for one. Take your car to the auto repair shop and have the issues repaired as soon as possible. Then, deposit what you would be paying for a car payment into a protected savings account for the next couple of years. You can do the same thing with the extra money you'd be paying on your auto insurance. That way, when you're ready to get a new car, you will have saved enough for a good down payment. In fact, you may even be able to afford to go one or two models above the one you're eyeing right now.Share