Most people cannot bear to sell their old car and buy a new one. It would be like cheating an old friend. However, you do not have to feel agonized, because if you reached the time for a change, you should choose something that will fit your needs. Also, having to repair your car once a week is a big indication that it is time to find a new car for yourself and your family.
If you are in the area and you need professional advice then you can check the best car dealerships in Fresno or any other dealers because they will be able to help you determine whether your car is ready for a dump or not.
The Math Myth
We all know that at some point each car will meet its maker. The first thing that you will notice is expensive repair bills, and as they add up to the proportion of your car’s value, more owners tend to think that they overpaid the vehicle and its use. But it is not as simple as that.
You should consider two factors: the actual and potential monetary value of your car. In overall, any car value and the primary goal is to provide you with transportation from one point to another. Both new and old car can do it.
The question is how can you get transportation at the lowest cost possible. That is when you take your car’s potential monetary value, and the math becomes transparent.
For instance, if you have Honda Civic DX and 100,000 miles on it, the trade-in value is approximately $2000, but if you have to replace the head gasket and other things, that will reduce the overall amount of the car.
On the other hand, if you choose to replace the gasket, you will have to pay between $800 and $1200, which means that you can buy a new car by adding more money to an equation.
The Real Math
The best way to determine and to decide whether an old car entered the point of dying is to compare the cost of the old car over a year to the costs of a new vehicle within the same timeframe. In case that your vehicle is older than five years, you will have to pay pricey repair bills.
The idea is to own a car that won’t provide you with those budget problems, which means that you do not have to pay more than loan payment on a monthly basis and gas for driving.
If we use the same example as above, you will spend a thousand dollars on old Civic and the same money on gas, which will require the cost of more than two thousand dollars plus insurance.
On the other hand, buying a new Civic means that you have to pay sixteen thousand dollars, and when you give your old one for two thousand, you will be left with fourteen thousand dollars.
If you decide to choose a four-year loan at four percent interest, you will pay $330 on a monthly basis, which means that annual payment will go up to $4000 plus gas. So, as you can see keeping the old one will commercially make more sense, because it will save you a significant amount of money.
You should click here to see whether it is better to purchase used or a new car.
Other Vital Factors That You Should Consider
You should think through whether your old car is unreliable and stop worrying only about financial perspective, and do things that your lifestyle requires.
For instance, if you have a car that is unreliable, so you are not reaching the work promptly, then you know what to do, without thinking on financial perspective.
At the same time, some problems are trying to fix which will ultimately increase the cost of the old car when compared to a new one. So if your vehicle features significant issues, and your mechanic sees it more than yourself, then the choice is right in front of you.
So it is an individual idea to determine when your car is dead, and you will be able to revive it from time to time and to pay significant cash to do so. On the other hand, new cars are also expensive, but more reliable.
