Nuggets To Use As You Plan To Replace That Car

The talk over replacing an old vehicle is now an issue because of the economy. Before now, people change them out of fancy. 

The scarcity of finance now makes it important to check ahead of getting a new car for fear of the payment costs.  When vehicles require up to eighty percent of their cost in repairs then it is time to replace them. 

This can come with accidents and many people do not note costs for such. They only consider the little sums they put into repairs that seem to increase as their cars. Most people do not know this since they only pay small fees to fix them.

When the visits to the auto mechanic become too frequent, it may be time to let go of such, as they rarely appreciate with age.  Here are ways to find out if their vehicles are worth the attention.

Find out their worth

They can do this on Kelly Blue Book’s site. They can also get the info from other free websites. By comparing with other places, they would have figures that are more accurate.

Cost of repairs

They should also compute the cost of repairing them as far back as three years.  They would be shocked at the amount that goes into this. While it may not be difficult to make the payments because they are cheap, it may be better they get another instead.

Go window-shopping

Before they leave their homes, they should have an idea of what they want. With that, they can visit a dealer shop to know how much they cost. On return, check out how much it would make payments monthly.

Compare this with the monthly cost of maintenance. If the former exceeds the latter, it may be time to get a new vehicle. Since maintenance costs increase with time, they can use the three-year estimate to know this.  

If the cost is on par, they need to change their vehicles. It is better to pay for new cars than keep repairing an old one. It is a bad way to manage finance.

Where people get it wrong

If they find out that their vehicles cost say about five thousand dollars, and they use just one hundred and fifty dollars to repair them monthly, they may feel they are safe.

 If they measure with the three-year computation, they would discover they have used five thousand four hundred dollars to repair their vehicle.  Continuing with this is a foolish way to use finance.

Those who do not travel far distances with them may continue with the repairs if they would be doing the fixing themselves. It is better to change them rather than to keep vehicles that need constant attention. A newer vehicle is always better no matter what.

Last Lines

The economy may make it difficult to change vehicles as people please, that should not stop from know when it is time to do so. 

If they want to do well, with their finances as it affects their vehicles, changing when repairs become too frequent is the best.

Adolph Obasogie is a chartered accountant and writer. He features on a number of blogs, primarily in the finance and lifestyle niche.


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