Many people are struggling to making ends meet in the current economic climate. When your vehicle becomes inoperable your level of stress increases and all you see is dollar signs. That’s when we usually get the question, Repairing a vehicle vs Buying a new vehicle? Here are a few things to consider if you are ever faced with this situation.
- Purchase Price: Is your vehicle paid for? If so, a $2500 repair may be more cost effective than a $30,000 new vehicle purchase. Don’t forget to tack on interest to the $30,000 purchase price.
- Insurance expense: In most cases newer vehicles are more expensive to insure than older vehicles. Many people forget to consider this extra cost.
- Trade-in: Many dealerships will not take your car as a trade-in if it is inoperable. This means your vehicle is worth zero dollars as a trade-in if you chose to purchase a new one.
- Auto Repair Financing: Many people are not aware that auto repairs can be financed. Typically short term financing is available at little to no cost. Dallas Park Cities Eagle Transmission can recommend many options for this.
Purchasing a new car may be the best option for you depending on your situation. However, thinking that decision through is something many people don’t take the time to do. When faced with this decision be sure to consider all of your options.