In the U.S. we seem to be in love with the word “NEW”. We want new cars, new girl friends or boyfriends, new shoes, new relationships, new furniture, etc. Why? that’s what I want to know. New is always going to get old eventually, are we just going to trade up ever time there is a “NEW” available? Why not fix that car, relationship, girl/boy friend first and then see how things are.
Cars are HAE’s specialty, not girl/boy friends or shoes. When it comes to the automobile, people are often to quick to through in the towel. Sure if you have an extremely high mileage vehicle that is costing you repair money of more than a car payment monthly, you need to consider looking for something else. But, ig you do the math and consider that a car is a depreciating asset, you might find that a new car payment (Typically around $478 per month for 6 years) is a lot more expensive than the repairs for that same period on your existing vehicle.
The auto manufactures would like you to buy a new car ever few years, that keeps the wheels of industry rolling, but can keep your budget rolled up! In reality, you can keep your car repaired and servicing your needs for many years beyond the last payment as long as you do the required maintenance. There are published reports that show savings in most cases of over $15,000 during a 6 year period of payments versus repairs. That’s $15,000, WOW! Imagine the credit cards that you could pay off and get rid of the high interest loans.
The next time you think “NEW” car, stop and ask yourself, “How much have I spent on actual repairs over the last 2 years?” Excluded maintenance, since that has to be done even on the new cars. Then figure out the expected car payment and see which one is less, I would bet the repair is going to win out on that.