One of the biggest questions that just about all people eventually struggle with is whether it is a good idea to keep an old car or to buy something new.
Many people decide to keep their old cars – a.k.a. clunkers – because they believe that driving an old car is more affordable than paying off a new vehicle. Others keep their older vehicles because these serve as a good backup car.
The decision to keep an old car is usually made by comparing your current fuel consumption with the fuel consumption and car payment of your newer vehicle.
But this is hardly a fair or correct comparison. Clunkers can have many hidden costs to cover that should be kept in mind before you decide to keep your old car. Here is a much more accurate way to establish the actual cost of driving an old car.
You Still Need To Save Up For a New Car
We all want to upgrade at one point or another. While you are driving your old car, you still need to save up some money so you can buy something newer and better. It is important to include the money you save up for a newer vehicle in your calculations when you are comparing the price of an old vehicle with a new car payment.
You Need To Consider Car Deprecation
All vehicles will lose their value over time. It is estimated that a brand new car loses 50% of its value during the first five years.
This is exactly why it is much better to buy a second-hand car that is in good condition rather than spend a lot of money on a brand new vehicle.
Your old car will also lose its value as time goes on and as damage to your vehicle increase. If you wait too long to sell an old car, you can easily risk getting a very low sales price for your old car.
Repairs Need To Be Considered
Newer vehicles usually don’t have a lot of repairs to tend to. Like older vehicles, these cars also need to be serviced. Clunkers, on the other hand, have a lot of repairs that constantly need to be tended to if you want to keep your old vehicle in good condition. Some of these repairs can be minor and affordable while others can be extensive and extremely expensive.
Both new and old vehicles have indirect costs that need to be covered. Costs like auto insurance and vehicle registration fees are due for any of your vehicles and usually cost around the same. If you do however keep an old car for backup, these costs can be considered extra.
Older vehicles often require upgrades to get them back up to standard. Upgrades such as new upholstery, performance carbonators, and other accessories can also be included with your clunker’s price because newer vehicles usually don’t need to be modified.
The effects an old vehicle has on the environment can never be evaluated in money terms because the effects of carbon dioxide and other vehicle gasses on our environment are so devastating.
When you consider all of these expenses as well as the money you would have saved up for a new vehicle, your older clunker can end up being much more expensive than a new vehicle is. If it is time for you to switch over to something more affordable and modern then you should give All Cars for Cash a call to get your old vehicle sold at the best possible price.