Trade in your Old Car or Keep it?
Sometimes we hang onto our old cars so long that we wonder if we should bother to trade it in and upgrade to a newer model or just keep fixing it up. Budget is usually the deciding factor here unless you simply love your old car so much that you can’t bear to part with it anytime soon.
However, if you really would prefer to trade in your old car and take to the road in a nice new zippy number, let’s look at the cases for keeping your older car versus trading it in for a new model.
Reasons for keeping your old car
If your old car drives well and there are no serious problems that will cost you an arm and a leg to fix, then it might be better to keep it, rather than spend your savings or taking out a loan to buy a newer model. Replacement parts can be a problem for older cars, however, with some parts not even being manufactured anymore. This quite often involves periodic visits to wrecking yards, trying to source the right parts for your old car.
At this stage and if your car is in pretty good shape, it is helpful to check out its current value, based on its age and condition. The older your car and the poorer its condition, the lower its value (unless you own a classic car!) and there comes a point where your car has actually hit rock bottom in value.
This is where you won’t ever see a return on the money that you spend on further repairs and maintenance, so unless you really love your old car, it might be time to bite the bullet and trade it in for a newer model. You can always think of the trade in value as a deposit on a new vehicle because, in reality, the cost of the car you purchase will be reduced by the trade in value of your old car.
Reasons for trading in your car and upgrading
If your old car still has some dollar value and is in fairly good condition, you might be able to shave thousands off the cost of an upgraded model. Of course, if your car is so old that it has lost all of its value, then you might achieve less than $1000 as a trade in, but that still reduces the overall cost of upgrading your car.
It goes without saying that a new vehicle will have more safety features than your old car and will have more high-tech options, such as a multimedia player, Bluetooth and a built-in GPS. It should also be more fuel efficient, helping you to save a lot more money on fuel costs compared to your older car.
Against these pluses, you do have to factor in the cost of insuring the new vehicle, as this might be more expensive than your older car, simply due to a higher cost of replacement.
However, after all is said and done, and while it will undoubtedly cost you money to trade in your old vehicle and upgrade to a newer model, there is nothing quite like driving a new car to make you realise that you made the right decision.