18/09/03 BY GERRY
When is it no longer worth repairing your existing car? There is no
formula for answering this question, however here are some important
things you should consider:
• Repairing a vehicle will always be cheaper than buying a new car, especially if it’s paid for
• Look up the trade-in value of your current vehicle
• How much of a down payment can you afford
• Visit dealerships, check the paper, and look at automotive websites to find out the price of the car you are considering buying
• Go to your bank to see what interest rate you’ll qualify for
• Calculate your monthly loan payment based on the cars price, down payment amount, interest rate and length of the loan
•A newer car usually means a higher insurance premium. Call your agent to see what the rate would be on the vehicle you are considering buying
• And if you buy a pre-owned vehicle, it may come with it’s own set of problems
How much longer can my car go on? That depends on several factors,
• The age and the mileage of the vehicle
• The dependability of the model you have. You can expect to get 200,000 miles from some cars, if well maintained. Although some models may only last half that mileage.
• Is your vehicle well-maintained? Have you done the oil changes and tune-ups, maintained proper fluid levels, and replaced worn parts as needed?
• Has your car been reliable until now, or has it been in the shop every month?
• Stay away from upside-down loans and the problems they cause! If you are still paying on your car, don’t sell it if the amount you owe is more than the car is worth.