Fix Your Old Car Or Sell It
It’s always hard to give up a car that you’re used to, but sometimes it’s about making wise decisions. If you are having a hard time deciding if you should fix or sell your old car, then you should begin to assess the costs involved.
Many people are scared of car payments. This fear is many times the reason why they decide to fix their old car without realizing that the monthly repair costs could be as high as a monthly car payment. If you want to avoid such a situation you should keep track of the costs and add up all the bills your mechanic asks you to pay each month, because otherwise you won’t be able to objectively assess the situation. In the same time you should keep an eye on the car market and make sure you are aware of the newest deals available. The moment you realize that the cost involved by the monthly repairs is higher than the monthly payment for a new car, you should think about selling the car and investing the money in the new acquisition rather than continue fixing it.
If you don’t want to get to the point where you’re paying high repair bills without even realizing it, you should always evaluate the car’s condition and make a list that should include the potential problems you should have your mechanic check out. In the next step, you will be able to determine what would be the maintenance cost if you would choose to keep the car. The mechanic’s inspection won’t mean a high expense for your budget, but it will give you an idea of how much money you are currently paying for fixing the never ending car problems you need to face each month. You can choose to add this cost to your pervious invoices from the same year and divide the result by the number of months that have passed since the beginning of the year. You will obtain an average cost per month that you can then compare with the cost of a monthly car payment.
Your decision of fixing or selling the car should also be influenced by the current market value of your vehicle. By trading in the car you will be able to use the money as a down payment for a new car. Although this is not the most cost-effective solution, it is an option. Another possibility would be to privately sell the car for a better price, but you will need to invest some time and money if you want a quick sale. With the right advertising and by setting an accurate price tag, you will be able to get rid of it faster. Don’t forget to clean its exterior and interior! If you take care of all the details you will benefit from a higher price. To get some help regarding the price, you should consider the Kelley Blue Book and the prices of other similar cars that are listed on specialized websites or newspapers. It’s always wise to check out the competition, isn’t it?
Before deciding to sell your old car and not fix it, you should think about the price tag of your next car and of your budget. Find out the price tag of the new vehicle you want to buy, subtract the market value of your car and think about ways to cover the difference. It’s always wise to make a large down payment and have smaller amounts to pay each month. You should look for cars which come with rebate incentives and low interested rates.
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