When you know that you have a strong financial foundation, purchasing a new car should be your next goal in mind. There are many financial advisors that will encourage car owners to hold on to their old car until it stops working in the middle of an expressway.
If you have an old car, you should know that breakdowns and frequent trips to your mechanic can cost you so much money. If you don’t have a car yet, commuting using public transportation can be tiring than your actual 8 – 5 job. Here are the things that you should look for in order to determine if it’s the right time to look for a car.
1. If the Repair Costs Begin to Go Higher than the actual Price of the Car
This is often the first reason why most car owners decide to purchase a new car. If you frequently have gas leaks, the air conditioner is not working properly, and the engine just suddenly dies at the middle of nowhere, this is a strong indicator that you need to get a new car. Sure, it might not be fun when you go back to the monthly car payments. However, if your car does not show a return on investment, it might be time to send it in a scrap heap.
2. The Car does not Pass Emissions Tests Anymore
New cars are invented with the environment in mind. There are newer technologies installed on new cars that are not available in the old models. If you are going to renew your license, your car is required to pass the environmental emission standards. The US Environmental Protection Industry puts these standards for car owners. If install the “drive clean” technology on your old car, it might be a waste of money. You might as well put that money on a new vehicle.
3. You have expensive Insurance and it just Increases every year
Old cars require more insurance the more miles they travel. As the car gets older, it becomes interesting to thieves. This is because more people need older car parts for vintage models. If you use the car to commute to work, insurance companies may require additional premiums. This can be an extra expense that nobody really needs. Newer cars are installed with new technologies that make them qualify for a cheaper insurance. If you get a new car, you won’t have to worry about repairs and breakdowns in the middle of the road.
4. Repairs and Breakdowns
It is understandable for old cars to have breakdowns. We are talking about breakdowns that happen once every year here. If your car needs repair every 2-3 months, then you are in trouble. If major repairs such as radiator replacements, and engine malfunctions frequently happens, then get yourself a new car.
5. You are Exposing Yourself to Danger
No matter how often you maintain your car, it will be prone to breakdowns in the middle of a busy rush hour if it’s old. If you think that you need to install advanced safety features, new side airbags, blind spot monitors, and electronic stability, the answer is a new car.
You can always talk to a financial advisor today and see what deals are being offered. You might be able to save more if you get a new car rather than wasting money for repair expenses.