For many people, getting rid of a car is a very difficult and emotional decision. Rationally speaking, you should not allow your emotions to dictate your behavior. Cars have a limited life-span and the best resale value of a vehicle should be realized whenever your car starts showing signs that you need to get rid of it. That brings us to the question, “What are the signs you should change your car?” Below are the 3 most important signs that you should change your car:
1. Repair cost > Cost to finance new car
This is a very simple formula. If your repair cost is greater than the cost of financing a new vehicle, get rid of your car and buy a new one! Let’s suppose you spend about $200-$250 per month in repairs. Now that’s obviously costing you too much money. In the same amount, you could very easily finance a new vehicle on a lease. Credit unions and some banks have very low interest rates available for car financing. If you dispose your old vehicle which asks for costly repairs every month, its proceeds can be used to finance your new vehicle. Excessive repairs not only damage the pocket but also damage the vehicle. The drive quality greatly deteriorates and there is an excessive loss of value as well. So, before you overpay on repairs and receive less than you potentially can, get rid of the car which is causing you so much trouble.
2. Dramatic decrease in mileage
Older cars tend to be less fuel efficient. This is because they do not have the sophisticated engines that are used in newer cars. It is very normal for an older car to have a lower mileage as compared to a newer model. However, if it comes a point where a 1.3L Honda is only allowing you to drive about 150 miles on a full tank, you have a problem. There is very little you can do about this problem. Such problems are probably beyond the point of repair unless you are willing to buy a new engine for the car altogether. It may be best for you to consider swapping your car with newer, faster and more fuel efficient model available in the market.
3. Change in use of vehicle
Let’s suppose that you were the “cool and famous” one with the flashy two door convertible in college. 4 years later you’re married with two children. You may want to consider buying a sedan which will accommodate your family. Your convertible will probably be of no use to your family due to the limited seating. Now let’s say you were a construction manager who owned a pickup truck but have now retired. It may be worthwhile considering buying a more luxurious car which is easier to maintain as compared to a pickup truck. To summarize this, changes in the use or lifestyle may be a strong indicator that you should change your vehicle.
There are several indicators which suggest that one should get rid of their car, but if you face any of the three issues highlighted above, be vary and seriously consider swapping your car.