| Your present car has either evolved into a reliable | | | | the repairs. Keep in mind that after three years of |
| partner or is showing signs of age and disrepair. It is | | | | driving your reconditioned car it will again probably |
| time to decide whether to keep your old car or | | | | need tires, brakes, and possibly other repairs. Also the |
| replace it with a new or used vehicle. In some cases it | | | | trade in value will have decreased over those next |
| may be cost-effective to repair your present vehicle | | | | three years. |
| but you have to decide if that is a wise choice. | | | | If you decide to make the repairs and drive the car for |
| Here are some ideas to consider when faced with this | | | | another three years then set aside the cost of a |
| decision. Determine the operating cost of your present | | | | payment each month and put that toward the next |
| car. Compare to the operating cost of a new car or | | | | car that you purchase three years from now. By |
| of a newer used car. Fuel mileage is a big factor in | | | | putting away $200 a month for three years you could |
| today's economic environment. Determine the cost of | | | | save $7,200 towards the purchase of that next car. |
| reconditioning your present car. It may need some | | | | The money saved plus the value of your clunker may |
| consumable items replaced.o a set of new tireso new | | | | pay for the next vehicle in full if you purchase a used |
| batteryo wind shield wiper bladeso belts, hoseso | | | | car or it could take a big chunk out of the cost of |
| muffler and exhaust system.o brakeso front end work, | | | | buying a new car. |
| ball joints, strutso Minor engine work such as tune up, | | | | Here are a few more thoughts to keep in mind to help |
| valve adjustment, timing belt replacement.o Body work | | | | you decide whether to buy a newer and better used |
| - could turn out to be a major repairo Paint job - paint | | | | vehicle or to buy a new car outright. There are |
| jobs can be expensive | | | | advantages to buying a new car:o It smells newo It |
| Major engine work I think would be a cost disqualifier | | | | looks newo It has up-to-date technologyo It has |
| to having the car reconditioned. Does everything work | | | | important safety features such as air bagso It will run |
| on the car? Are there any pesky problems such as a | | | | trouble free for the next 5 to 7 years (well it should!) |
| radio that doesn't work, electric window problems, or | | | | The advantages of buying a used car:o a used car is |
| other little items that tend to cause you stress. Is there | | | | a better buy and more affordable than a new car.o a |
| anything at all about the car that irritates you? If so | | | | new car depreciates by up to 30% the minute you |
| then why invest money in something you aren't going | | | | drive it off the dealer's lot.o with a used car you have |
| to enjoy driving and spending time in? | | | | no fees such as dealer prep, shipping costs, new |
| After you determine the cost to repair your present | | | | registration, licensing, etc.o Insurance for an older car is |
| car then, determine the value of the car. Use the Kelly | | | | somewhat cheaper.o the monthly cost to drive a used |
| Blue Book for Used Cars to estimate the value. If the | | | | car is less. The cost of the new car monthly payment |
| cost to repair is more than 30% of the trade in value | | | | alone is much more for a new car than for a used car. |
| then I would think twice about putting money into it. On | | | | After reading over these thoughts I hope you will feel |
| the other hand if you like the car and the repairs will | | | | better prepared to tackle your next car buying |
| give you another three years of trouble free and safe | | | | decision. |
| transportation then it may be a good choice to make | | | | |