Shall I Repair Or Upgrade My Car?
Lesson 8. By [Automovill.com] powered by {DigiMusk.com}
It’s an obvious question when your car runs a certain mile and start giving you signals of unwanted maintenance costs. With the time, you also get attached to your car like it’s your one of the heritage assets. But what shall you do when you are in a fix whether to repair your car or to replace your car and upgrade to a better version? It ain’t easy to conclude on this.
Based on our experience, here we’re just guiding you to consider these things before you reach any conclusion.
1. Expenditure a concern?
Keeping your old car intact will remain economical to you unless and until it’s maintenance is taking a toll on your budget. If the ride doesn’t cost you more than your car’s worth, it is sensible to keep the old car. Also, your insurance is typically lower for your old vehicle. Calculate the economic expenditure of both the fronts and see what’s best for your present budget.
2. How well is your car maintained?
A car does need attention like a toddler. If you’ve maintained your car really well, then you might need not think of an upgrade. But if the car has died and you rely on your car for livelihood, then an upgrade makes a sense here. If you’re constantly on move and commute by car is the only option for you then it’s important to keep a maintained car. A well-maintained car will perform better than one that’s been neglected.
3. Do you fix your car yourself?
If you know how a car works and you can fix the little issues by yourself, you should consider repairing your car instead of replacing your car. Upgrade definitely needs your time and money. If the little fixes at your end can keep your car alive and give you a good ride, you should consider spending on traveling for road-trips rather than a replacement.
4. What’s the present gas mileage of your car?
If you have a lengthy commute, how much gas mileage does your present car get? If you’re spending a lot because you have to travel frequently, you can consider opting in for a car, which will give you a lesser price on the mileage.
5. Is the new car a “want” or the “need”? Ponder over!
A logical way would be to differentiate between the need and the want. Do you want to replace your car because you definitely need a new car, or you just want a new car because you now fancy the latest version? It is always advisable to keep yourself within budget until your revenue exceeds your expenses.
6. What will be your car’s resell value?
Do the MATH. If the repair cost comes at lesser than half of the car’s resell value, then you should consider repairing your car. But of it is nearly equal to the resell value, then opt in to upgrade your car. Also, research about how long the repairs will add life to your car?
7. Will your new investment double up after say 5 or 10 years?
Every investment you make should be done in order to build up the return with a high rate. Buying a new flat is advisable as it’s value will double up within a certain time but a car’s value will depreciate by the time. Calculate your investment ROI and see what will give you the most return.
8. Which would be safer?
Is your present car meeting the safety guidelines for you? If you are constantly on the move for work, you will need a rough car that can sustain the rough use. If a new car can assure better safety than the present one, then you must go for it.
9. New Car? Leased Car? Used Car?
If at all, the only option is to replace your car, and you’re pondering over whether to opt-in for a new car, a leased car, or a used car, go for a used car. Why? Because a new car’s worth will depreciate by 25% in 1 year and a leased car will add to your EMI to the dealer’s profit. In such a case, a used car will be the wisest decision.
10. Are you falling into the trap of mechanic’s up-selling services?
If you’re running around the workshops and even for a minor issue, your mechanic suggests 5 other repairs and you’re sold to it because your car is getting older and you can’t take any risk, hold for a moment and rethink how worthy is it? Is spending more money on multiple services from time to time a worth of investment?
At the end, you need to be careful of all the repercussions that might arise due to your calculated decision. We, at Automovill, are there to guide you to the best as we’re putting more efforts in educating our customers to their best.
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