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Keep Your Old Car Or Buy A New One?

March 9, 2021 By Thomas Bawdy 1 Comment

If you have owned a car for a while, you may be visiting your mechanic for the fifth time this year and asking if it’s time to buy a new vehicle. In many cases, keeping an old car is more cost-effective than purchasing a new one. However, buying a new car can offer several advantages, including advanced safety features and broader employment opportunities. There’s no clear-cut answer to this question, as most factors that could influence this decision are unique to each vehicle owner. As you evaluate your options, make sure to compare the financial benefits against intangible factors that are important to you.

Reasons to Keep Your Old Car

There are a few financial upsides to keeping your car. With an older vehicle, the costs are generally limited to insurance and maintenance. However, with a newer vehicle, you generally have to pay a down payment, registration and titling fees and monthly payments if you choose to finance the vehicle. You may also end up paying more for insurance with a new car, losing the rates you had with the older vehicle. With this in mind, it may not be financially wise to purchase a new vehicle if you are on a tight budget, it. Furthermore, cars depreciate in value very quickly. This means that within the first year of purchasing a new vehicle, it will have already lost up to a quarter of its value. In this case, it might be better to keep your older vehicle.

One of the most common reasons people want to get rid of their car is the cost of repairs. You might find yourself regularly visiting the mechanic to figure out why your car isn’t running properly. If that’s the case, it’s important to compare the cost of repairs against the car’s cash value. A good rule of thumb when assessing this is using the following strategy: If the cost of repairs exceeds at least half of the vehicle’s market cash value, then it’s not worth repairing.

Keep in mind that as a vehicle’s mileage increases, so does the amount of repairs. For example, many vehicle owners must replace the engine’s timing belt around the vehicle’s 100,000 miles mark. Other repairs and replacement, such as the water pump are common once the vehicle reaches this mark. These are common maintenance repairs as mileage increases the vehicle’s wear and tear. However, if the vehicle is in otherwise good condition, a replacement might be the most cost-effective solution.

Reasons to Purchase a New Car

There are many reasons to buy a new car. The first and perhaps most attractive reason is the modern safety and technology features. The newer the vehicle, the more safety features it will generally include. Not only can these new features keep you and your passengers safer, but they can also affect your insurance. Some car insurance providers offer discounts to motorists with vehicles that have certain safety features. These features signal to the insurance companies that the vehicles are less likely to get severely damaged in an accident, and passengers are less likely to sustain major injuries.

Do you want the option of making phone calls in your car? Perhaps you want to listen to your curated playlist. Newer vehicle models are equipped with various technological features that older vehicles may lack. These include Bluetooth connection, access to premium radio services, garage door transmitters and more. For many drivers, these features make for a more enjoyable driving experience.

Moreover, consider your lifestyle. What does your commute look like? Long drives may not be ideal with older vehicles as they have already experienced wear and tear and are more likely to break down on the road. A new vehicle will provide a sense of security to the owner and make long commutes more secure.

Ride-hailing and food delivery services have grown in popularity as easy ways to make money. Many companies have strict eligibility requirements for drivers and the vehicle. Common qualifications for vehicles include a model year 10 years old or younger and mileage that does not go beyond 100,000. While it might vary slightly depending by state and organization, these are standard practices across most companies. If you are interested in engaging in this type of employment, consider purchasing a new car.

Additionally, getting a new car can give you a boost of confidence, especially if your job requires driving clients around. While this isn’t a quantifiable reason, how you feel while driving should play a role in your decision.

Third Option

There is also a third option that combines the benefits from both scenarios: purchasing a used vehicle. While many used vehicles may come with their own set of problems, you can find a good deal on a great car if you do a bit of research. This can be accomplished through a title check, requesting a Car Fax report or having a trusted mechanic perform a vehicle inspection. Through this, you can get a newer vehicle that fits within your budget, has newer features and is free of major issues without having to pay the high dollar amount for a brand new car.

Filed Under: Cars Tagged With: buy a car, buying cars, car purchasing, cars

Why Buying a Toyota Sienna Was One of Our Best Decisions

August 24, 2020 By MelissaB 1 Comment

Almost 16 years ago, my husband and I had one child—a four-month old—and we decided our Toyota Echo was too small for our growing family.  We found a Toyota Sienna and made the leap.  That car was by far our greatest financial commitment at the time as it cost $25K.  (We didn’t own a home then.)  While paying so much back then made us nervous, there are several reasons why buying a Toyota Sienna was one of our best decisions.

Why Buying a Toyota Sienna Was One of Our Best Decisions

The Benefits of a Toyota Sienna

There are so many benefits to this vehicle for our family!

Reliability

When I was young, I owned a Ford Escort.  I only owned it for two years, yet it left me stranded three times because it randomly broke down.  One time it broke down after a high school dance.  I was stranded at midnight when I was just 16!

In all the years we’ve had the Sienna, it has not broken down once.  I’ve never been stranded.  Considering I often drive alone with young children, this is a definite plus!

Sure, it’s needed regular maintenance and repairs, but that is to be expected.  Its reliability can’t be beat, especially when we’re on long family trips like from Chicago to Boston or Chicago to Tucson.

Durability

Why Buying a Toyota Sienna Was One of Our Best Decisions
Photo by Jessica Furtney on Unsplash

Honestly, when we bought our Sienna when our child was four months old, I never, ever thought I would still own that vehicle when the baby we had then was old enough to drive.

However, this vehicle has been so durable!  It’s still going strong even though it has 225,000 miles on it.  Our mechanic says he’s seen some Toyota Siennas that are well maintained last until 300,000 miles.

I have no plans to get rid of this minivan until it costs too much to repair or it dies.  This is much to my children’s chagrin because they find the vehicle embarrassing now.  But my wallet loves it!

Versatility

The Sienna is so versatile.  It’s a comfortable vehicle for our family of five.  However, it can also take the place of a truck or a full-size van when it comes to hauling things.  We’ve been able to buy large pieces of furniture and fit them in this vehicle.  It’s also great when we buy a month’s worth of groceries.

When we used to travel 2,000 miles to visit family, we could easily pack all of our suitcases, two coolers worth of food, and our pets comfortably in the vehicle with us.

Final Thoughts

Sure, our vehicle is old and is starting to wear out.  For instance, our car came with one manual sliding side door and one electronic sliding side door.  The electronic door wore out more than five years ago, and we never fixed it because it would cost too much money.  Thankfully, we still had the manual side door.

Also, the engine isn’t quite as powerful as it used to be.

Despite these minor issues, there are many reasons why buying a Toyota Sienna was one of our best decisions, especially because many vehicles with 225,000 miles aren’t even on the road anymore!

Read More

Is a Car an Asset or a Liability?

Haggling or No Haggling When Buying a Car?

How Much Car Insurance Coverage Do You Need?

Filed Under: Cars Tagged With: buying cars, cars

Selecting the Best Used Car

February 23, 2016 By Thomas Bawdy Leave a Comment

Buying a car is, possibly, one of the most important investments you can do. For this reason, there are multiple steps you should consider, before making your decision. We hope our guide to selecting the best used car will help you to accomplish that.

Establish a budget

When establishing a budget for buying a used car, it is important that you take into consideration the charges that come with insurance, registration, maintenance and running costs.

Do your research

After settling how much you can afford to spend, you can start doing your research. And it’s genuinely important that you allow yourself plenty of time to get acquainted with the prices on the market. For instance, if you want to convey the market’s price of a car that you have in mind, try looking on the Internet for various used car ads.

If you stumble across a car whose price is much lower than the market price, you should be wary – the car may not be as good as the owner claims it to be.

Select the car

As you’re in your quest for finding the ideal vehicle, we recommend that you read plenty of reviews for the car you wish to purchase. Plus, always consider checking whether the newest model of that car is soon to be released – this can help you to haggle on the price.

Contact the seller

Now this is when all the fun begins. When you finally found the car, and you think it’s right for you and your needs, you should contact the seller. Don’t be intimated to ask plenty of questions, you need to find out as much as possible about the vehicle so that you know what you’re paying for.

Consider asking about the amount of time the seller has had the car, the reason he/she is selling it, if it suffered any accidents or serious damage, its condition and whether it will meet an RWC or not. Also, pay attention to the seller’s reactions to the questions. Body language can also indicate whether he/she is reliable or not.

If you’re buying the car from a private seller, we recommend that you meet at his/her house. The seller’s personal information should coincide with the ones on the registration certificate.

Check the car’s record

Even though you might believe that the seller is reliable and honest, that doesn’t mean you should take his/her word for it. You need to make sure that the car isn’t stolen, or encumbered. For this reason, please consider getting its VIN and check the state in which it’s registered.

Verify the car thoroughly

Besides personally checking the car, you should consider having it checked by a mechanic. This move can help you save thousands of dollars and prevent you from making a bad investment.

We recommend that you verify the car in daylight so that you can have a good look at all its possible defects – signs of rust or previous accidents. Take a good look under the car, inside the car, and at the tires. It’s equally important to inspect the engine for any signs of leaks or exhaust fumes.

Filed Under: Cars Tagged With: buying cars, cars, used cars

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