At some point all drivers start contemplating whether it makes more financial sense to repair or replace their vehicle. Virginia Tire and Auto understands this is a difficult decision to make so we’ve compiled some things to consider when making such an important decision.
Will the repairs cost more than the car is worth?
If the amount of money spent on your vehicle starts accumulating to the point where it’s going to cost you more in repairs or continual maintenance than the old car is actually worth, it could be a good idea to replace your vehicle. Keep in mind that older cars usually require bigger and more expensive repairs.
Is there potential for future repairs?
Let Virginia Tire and Auto inspect your car to forecast looming problems and advice on how serious and soon the repairs will need to be made.
Has your gas mileage decreased?
The older your car gets, the less fuel-efficient it’s going to be. That’s because it doesn’t have the engineering advances of newer engines, is likely nearing the end of its useful life, and will continue to go downhill or require increasingly more expensive repairs – like a new engine, transmission, or both.
How much is your car worth?
There are helpful sites like Kelley Blue Book and Edmunds that can help determine the trade in and/or retail value of your car. A good rule of thumb is to employ the so-called “50-percent rule.” When repairs cost 50 percent of what your car is worth, it may be time to replace it.
What will your next car be?
It’s a good idea to think about what your next car will be, how much it will cost and obviously, how you are going to pay for it! You can use the proceeds from the sale or trade-in of your current car to serve as a down payment to lower the amount you’ll need to finance. Weigh and balance whether that monthly payment for the next 36 to 60 months is more or less than the anticipated annual repairs for your current car. Another rule of thumb here is to consider replacing your car if yearly repair bills are more than 10 percent of the price of the new car you’re looking at.
Virginia Tire and Auto always tries to emphasize the importance of scheduled maintenance, it will add a significant amount of usage to your vehicle! You can learn more about proper vehicle maintenance by visiting: http://vatire.com/support/1288/how-to-get-the-most-miles-out-of-your-car/