Crunch the Numbers: Keep or Sell Your Car?
Justin Duthie"Should I just buy a new car?" It's a question I hear frequently from customers feeling overwhelmed by repair costs. While the allure of a trouble-free new vehicle is tempting, making this decision requires a practical analysis rather than an emotional reaction.
Calculate Your True Repair Costs
When faced with this dilemma, I recommend a straightforward financial assessment:
- Gather your repair receipts from the past 2-3 years
- Subtract routine maintenance costs (oil changes, brakes, tires) as these apply to any vehicle
- Calculate your monthly average by dividing the remaining amount by the appropriate number of months (12, 24, or 36)
This simple calculation reveals your actual repair burden—not the inflated figure that often lives in our minds after a particularly expensive repair.
Compare With New Car Economics
Now, compare your monthly repair average with potential new car payments. Is a new vehicle truly more economical? Remember to factor in:
- Higher insurance premiums for new vehicles
- Increased property taxes or registration fees
- The inevitable depreciation (particularly steep in the first few years)
- The limited nature of warranties (typically 3-5 years)
"Are you trading a known entity with documented issues for an unknown entity that will eventually develop its own repair needs?"
The Long-Term Perspective
While new vehicles offer peace of mind initially, they eventually reach the same post-warranty status as your current vehicle. The critical question becomes: Are you trading a known entity with documented issues for an unknown entity that will eventually develop its own repair needs?
Many customers are surprised to discover their current vehicle's monthly repair costs are significantly lower than new car payments would be—even with occasional expensive repairs factored in.
This straightforward analysis provides a solid foundation for making what is ultimately a personal decision based on your specific circumstances, driving needs, and financial situation.
