Should I Repair an Old Car or Buy New?

Repair and Maintenance Costs

Determine the costs of the repairs you need to make and what repairs or maintenance needs to be done in the near future. If you have consistently maintained your car, you may not have any other immediate repairs to make, such as timing belt replacement. A new car requires only regular maintenance while it is under the manufacturer's warranty.

Insurance and Financing

Most people take out a loan to purchase a new car, meaning monthly payments are necessary. In addition, you must purchase a full-coverage insurance policy if you have a loan on your car. If you have an old car with no payment and only liability insurance, compare the costs before making your decision. Your old car will need repairs done from time to time, while a new car requires more money paid out over time.

Bottom Line

If you want a new car, go ahead and buy one. If you like your old car, it may save you money to make repairs. Compare the costs of insurance and financing (if necessary) to your repair costs to make your final decision.

References

• Auto-Repair-Help.com: Car Buying Tips