A car, sometimes, is not a luxury but a necessity. With time and heavy usage, even the best-kept cars face wear and tear or may get damaged.
Are you deciding whether to continue using your existing car or to replace it with a new one? Following are four aspects that need to be taken into consideration before making a decision.
1. Your car needs extensive repairs
If your old car requires repair work constantly and you have to visit your mechanic frequently, it is time for you to replace your car. There may be numerous reasons for this – engine failure, issues with the cooling system, battery faults, damaged tires, and clutch issues, besides others. Due to such mechanical problems, you may end up spending more on repairs than what your car is worth.
2. Your car has numerous safety issues
There are many individuals who prefer selling their cars once they have driven around 40,000-50,000 kilometers. Once the car reaches this mark, it begins to age. Older cars tend to have a potential risk of having a breakdown while driving. Latest cars come equipped with advanced technological features such as airbags, Anti-lock Braking System (ABS), backup cameras, backup sensors, voice controls, and adaptive cruise control, besides others. Such features not only minimize the risk of accidents but also give you peace of mind as far as safety is concerned.
3. Your car has mileage issues
If your vehicle has mileage issues due to its age, it is time to replace it. Older cars tend to be less fuel-efficient, and hence you may end up spending a higher amount of money on fuel. You could consider repairing the engine or the transmission – or even both, but it may turn out to be a costly affair. Besides, chances are that the problem may recur again.
4. Changes in your lifestyle
You may consider replacing your old car if your family has grown. You may also purchase a new car if you have a greater disposable income. With such changes in your lifestyle, you may sell your existing car and opt for a new one based on your needs. You may borrow a car loan to fund your new vehicle purchase. That being said, you also take a used car loan and buy a good second hand car model.
Making the right decision
Before you consider making the switch, you need to find out the trade-in or the retail value of your existing car. If the cost of maintenance is almost equal to or marginally lesser than the value of the car, then it is time to replace your car.
After evaluating the value of your existing car, determine the cost of the car you wish to purchase. You may utilize the amount received by selling your old car to lower the amount needed to borrow. There are numerous lending institutions, which provide car loans for those seeking finance to buy a new car. These lenders offer loans with easy Equated Monthly Installment (EMI) plans thus making it easy to afford a car without much strain on your budget. You may borrow a vehicle loan, and drive home the car of your dreams.