Sometimes deciding whether it is a good financial decision to keep your car or replace it can be a bit tricky. There are certain steps you can take that can make this decision easier. In this article we will discuss some things that may make things easier when you are at this crossroads.
One of the first things you should do is consider the cost of purchasing a new car instead of fixing your old one. Consider your upcoming financial needs. Does your current vehicle need expensive repair work? How old is your current car? Is the car you’re considering better on gas? How much does your car insurance cost currently? How much would the auto insurance cost for the new car? If the cons and cost of purchasing a new car exceed that of keeping your old one, it would be a wise decision to hold on to your current automobile.
If you still want to purchase a new car, it’s time to determine your budget. Most financial advisors agree that you shouldn’t spend more than 22% of your net pay on a new automobile. They also say that you should not purchase a new car if your will experience hardships by doing so. Another option to consider at that point would be purchasing a used vehicle when you need to. In most cases, the most definitive way to save money on a car is to drive your car until it can’t be driven any longer.
If you care considering purchasing a new vehicle, you can AAA Ron Steffens for a free quote to see how much the insurance on a new car would be so that you can budget beyond your purchase. (586) 954-2461