Should I Keep My Car or Trade It In? 7 Signs It May Be Time
A paid-off vehicle can be one of the smartest things you own.
No monthly payment means more money available for savings and other expenses.
But there may come a point when keeping an older vehicle becomes less practical.
Here are seven signs worth considering.
1. Repairs Are Becoming Frequent
An occasional repair doesn't mean you need another car.
But if you're repeatedly paying for unexpected problems, compare the ongoing costs with the expense of replacement.
Look at your total repair spending over the past year.
2. A Major Repair Is Approaching
A transmission, engine or other expensive repair can change the calculation.
Compare the repair estimate with the vehicle's current value and expected remaining life.
A $2,000 repair on a reliable vehicle isn't automatically a bad investment.
3. Your Vehicle No Longer Fits Your Needs
Maybe you need more passenger space.
Maybe your commute changed.
Maybe you're driving a truck but no longer need one.
Your transportation needs matter as much as the vehicle's condition.
4. Your Fuel Costs Are Too High
A more efficient vehicle may reduce fuel expenses.
But don't take on a large payment solely to save a relatively small amount on gasoline.
Calculate the total ownership cost first.
5. Your Trade Value Is Still Strong
Find out what your vehicle is worth before assuming it's too old to trade.
If you have positive equity, that value may help reduce the amount financed on your next vehicle.
6. Reliability Is Affecting Your Daily Life
Missing work or repeatedly arranging alternative transportation has a cost.
If breakdowns are frequent, reliability may become a stronger reason to replace the vehicle.
7. You're Facing Several Upcoming Expenses
Tires, brakes, suspension work and other maintenance can add up.
Consider whether those expenses are normal maintenance or part of a larger pattern of deterioration.
When Should I Keep My Car?
Keeping it may be the better choice when it's reliable, affordable to maintain and meets your needs.
A paid-off vehicle with manageable maintenance expenses can be much cheaper than financing a replacement.
What About Negative Equity?
If you owe more than the vehicle is worth, trading may increase the cost of your next loan.
Get an accurate payoff and appraisal before deciding.
Compare Your Options at Cannon Nissan
Cannon Nissan of Moss Point can help shoppers compare their current vehicle's trade value with available new and pre-owned vehicles.
Don't replace a good vehicle just because it's getting older. Replace it when the financial and practical reasons actually make sense.