You don’t need to be an automotive expert to know that buying a new car is expensive. Likewise, you should know the importance of having a safe and reliable vehicle and fixing an older car can be costly. Deciding between the two options can be overwhelming as there are a variety of factors to consider.
1. Should I Repair or Replace My Car
First of all, there’s no need to panic before actually seeing how much fixing your car will cost. After the mechanic answers this question, you will most likely panic when you hear the figure so make sure you check if there’s a way to make it cheaper, such as by using salvaged parts. Also make sure you account for any future repairs that the car might need. Once you have an estimate, you can use the below checklist in your decision-making process.
Compare the figures
In most cases, fixing a car is cheaper than buying a new one. The rule of thumb is that if the cost of repairs is greater than either the value of the vehicle or one year’s worth of monthly payments, it’s time for another vehicle.
Consider the intangible factors
Money is not the only thing to consider. Although fixing a car is cheaper, make sure that your car is reliable as you cannot put a price on safety. Life is too precious.
Remember you have other options
Look if there’s a cheaper model out there or a buy a used car if you want a specific model. If you cannot settle with any of these options, start saving money for a sizable down payment.
2. Car Buying Tips
Buying a car is a major investment so you want to make sure that you thought it through.
Set a budget and stick to it
Make sure you have a budget before you go to the dealership and risk being enchanted by a salesperson. Also, be ready to walk out empty-handed if you cannot afford the given price. Leave monthly payments aside as your payment can easily end up being far more than the price you are willing to pay.
Familiarize yourself with all the options and figure out how you’ll pay
Incentives and rebates can save you a lot of money.
Compare prices
Make sure you collect quotes from several dealerships. This will also improve your negotiating position so you can get the best deal. Also, keep in mind any registration fees, taxes, documentation fees and other charges that will incur, but don’t fall for extras that only increase the price without really adding any value. The only thing that might be worth it is an extended warranty.
Leave your emotions out of it
It’s important not to get hung up on a certain car as this is a business transaction that will impact your finances over the long-haul. Make sure you read the contract A to Z before you sign it.
3. How To Save for a Car
If you decide to buy a car, savings will maximize your down payment and minimize the amount you have to borrow. There are many simple ways to save money both for a new car or the repair to keep your current one going.
Eliminate unnecessary expenses
Consider cutting down on ‘wants’ or getting a coffee from Starbucks every morning. The same goes for any automatic subscriptions that you forgot about.
Save money on your monthly expenses
Everyone knows that utilities play a major role in monthly expenses so practice energy efficiency to lower your Peco energy bill.
Get a side job
A side hustle is a great way to earn more money while also advancing your skills. From writing to pet sitting, the opportunities are endless, you can practically get paid for doing a hobby you enjoy.
Takeaway – Whether you choose a shiny new car or fix your existing one, remember to take good care of it. Get a good mechanic and don’t skip on regular maintenance. Also, don’t forget to get its interior cleaned along with its exterior. The better you take care of it, the longer it will last.
