Your car is more than just a vehicle to get you from A to B. Depending on how long you have owned your car, it has likely taken you on numerous adventures and many miles of daily commutes. When your car starts to struggle, it can be difficult to decide if it’s worth repairing or it is best to replace it. If this is you, here are five questions to ask yourself to help make your decision.
What does your current car cost you?
A paid off car is a huge plus but even without monthly payments, consider how much you spend on gas, insurance, and maintenance. If possible, add up a year’s worth of these expenses and divide by 12 to find your average monthly vehicle costs.
Does your car need an expensive repair?
If you have one isolated large repair, that doesn’t necessarily mean it’s time to trade in. If your car has had two or more expensive repairs, it may be time. If you have a mechanic you trust, it may be worth asking about potential future repairs that your vehicle may need and how much those repairs are estimated to cost.
How much is your car worth?
It is also worth investigating the value of your current car on a free trusted site (ex: Kelley Blue Book, Edmunds). This will provide an idea of what you could get for your car if you were to sell it or trade it in.
Is your car safe?
When considering the financial benefits and drawbacks of replacing vs repairing your car, your peace of mind should be considered. If you worry about your car breaking down on the road or not starting when you need to leave for work, keep that in mind when making your decision. Replacing could mean a safer, more reliable vehicle.
How much would a replacement cost?
If you were to replace your car, what make and model would you want? Research options and pricing to calculate your monthly payment. Add in monthly fuel costs, insurance and fees to get your monthly total. Compare this to what you calculated under question 1. Consider other benefits and costs to decide which option is right for you.
Whether you decide to repair or replace, it is important to protect your investment with the right insurance for you. SafeAuto knows your car is important to you so it’s important to us too. Get a car insurance quote in 3 minutes and you can save 25%.