After our homes, the car that we drive is generally the most expensive single item that we buy in our lives. But, because many people see it as essential, it’s a cost that we’re prepared to pay. Is there any right time to know when should you trade-in your car?
There comes a time in every automobile’s life when we have to start questioning if it’s becoming more of a liability than an efficient method of transport.
However, whether to try to keep it on the highway or to switch up to a newer model is a big decision to make. One that might be a little easier when you’ve finished reading this article.
3 Tips To Decide When Is The Right Time For Trade-In Your Car
If you want to find out when is the best time to trade in your car. Then here are the guidelines. Read it and know how you can decide which one is going to be your best for trade-in or fixing your car.
Here are three tips. Read them and decide on your own for the right time.
1. It’s A Question Of Cost
“Beyond economical repair” is a phrase that is ominous to hear, whether it’s about a broken-down refrigerator or the potentially far more costly example of an auto.
But what does it really mean? For example, some people are so attached to their cars that there is almost no amount that would be too much to pay to keep them running.
Sentiment aside, it’s generally agreed that any repairs that are going to amount to 50% or more of its value need to be considered very carefully. Plus, it tends to be the case that once certain things start falling on a car, many others are set to follow. The result: a money-pit on wheels.
But this also has to be measured against the cost, and hassle, of finding and buying a new car before you decide what you’re going to do and when is the right time to trade in your car.
2. The Best Way To budget
Like everything these days, the costs of just running a car, let alone buying one, are steadily rising these days. So, before you make that leap of trading in old, for now, there are some pretty tough maths to do.
If you’re planning to buy a model and trade-in your car straight out of the showroom, you need to factor in the depreciation that will start the moment you drive off in it. The purchase price is also going to mean you take quite a financial hit, tying up money that you could be put to better use somewhere else.
Then there’s the insurance to consider too. It’s obviously going to be more expensive than your current car, plus there will be the registration fees to cover.
Even if you decide to buy a used car to reduce all these costs, you’ll still be taking a risk that it doesn’t have some faults that will need to be sorted out sooner or later.
And, if you follow the widely-held advice of not spending more than 10% of your disposable income on a car, your choice is also going to be limited.
3. Spread The Cost, Keep The Car
Given that you decide to stick with the car that you know, maintenance is going to be an ongoing trade-in in your car and associate expenses. But there are plenty of ways to spread the cost.
Along with brakes and mufflers, tires are likely to be parts that need to be replaced most frequently. So, a tire and wheel payment plan could be the perfect solution. Not only will this make it easy to budget, but the plan will also help to seek out the best deals for you, even on the leading brands.
For other maintenance, using a credit card and paying a fixed amount each month to clear the debt before the next bill comes in will also help the budget.
Bottom line: Take Care Of Your Car
Sure, some components will need to be replaced from time to time. But it’s the big, unexpected repair bills that are really going to hurt. Often these come as a result of poor maintenance as well as failing to check things like oil and coolant levels often enough.
So remember to do this and generally sort out minor issues before they turn into serious ones, and you’ll find your current auto could be with you far longer than you expect before trade-in your car.
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