We are currently a two car family. I have friends who have gone to one car but don’t feel good about that because I want to know that my wife has a reliable car if anything should happen. The car I drive to work has over one hundred and fifty thousand miles on it. Boy a new car would be nice, but here are some reasons to forgo that purchase.
6 REASONS TO KEEP YOUR OLD CAR
- Life without a Car Payment
If you have gone from having a car payment to not having one you know the relief you feel. Not only do you not have the money going out for the car payment you are able to put that money to work in other ways.
Several years back I had a car that was on its last let, I gave the car away to a ministry and bought the car I have now (the one with over 150 thousand miles on it). It seemed to make sense because it would of cost more than the car was worth to fix it. However if I would of fixed it I would have been in a much better financial spot a lot sooner. The cost of repairs is almost always cheaper than buying a new car.
If your car is paid off and you are considering purchasing a new one, ask yourself: “Do I really want a car payment on a monthly basis again?”
- Great time to Save for Your Next Car
The longer you put off buying that next car the longer you have to save for that next car. Consider putting your payment into a savings account until you are ready to make that purchase. If you put $300 aside every month you would $4,500 in just 15 months.
- Depreciation
I mentioned that my last car, I gave away to a non for profit, the reason is they depreciate so fast. If you are not careful your car will depreciate at a faster rate than you pay it off. Many people find themselves upside down with their car payments meaning they owe more than it is worth. Often times people role this difference into the purchase of a new car and the cycle continues.
- Taxes and fees
This is the one that got me, I thought it would be fun to buy a car for the summer, I would of probably broke even on the cost but when I looked at the cost that I would pay for tax, title and registration. It was a no brainier.
- Insurance
Insurance is usually cheaper on an older car.
- Less Stress
One nice thing about having an older car is less stress. I don’t have to worry about food in the car. A friend backed into my car last winter and left a scuff on the fender, no worries.
Final Thoughts,
Safety, driving an old car is not an excuse for not maintaining it. Make sure things like your breaks, tie rods and tires are good. No cost savings is worth an accident. If you are handy learn to do the repairs yourself. If you are not handy see if there is a ministry around you that helps people in need with car repairs. Another idea is to look into schools in the area that have auto mechanic classes, sometimes these places will fix your car for the cost of the parts. Ask around for a mechanic, a lady I worked with used to take her car to a friend who did the work out of his garage.
Keep your car clean, I know firsthand that it is easy to feel like what is the point, but keeping your car clean will go a long ways in helping you feel better about your older car.
Did you choose to keep an older car rather than purchase a new one? How did you use the extra money?
