How to Decide Whether to Keep or Replace Your Car

With the price of new cars increasing at an alarming rate, you may need to take a good look at the car you already have. Is it worth keeping?

Instructions

Difficulty: Moderate

Things You’ll Need:

• Consumer Reports
• Car Insurance
• Car Mechanics

1. Look at the maintenance records (you did keep them, didn't you?). You've already spent money keeping your vehicle up and you're familiar with the completed work. If your car hasn't had many problems yet and your mechanic doesn't anticipate any major work in the future, you may want to hang on to it a little longer.
2. Consider insurance. Your '94 Honda Civic is going to cost you a lot less than a brand-spanking-new Ford Explorer.
3. Think about your needs. Does your two-door seem too small for your family of five? Can you stand the thought of your teenage son learning to drive in your new Town Car?
4. Check your gas mileage. If you're getting decent mileage now, a new car may not do that much better. But an old gas guzzler may cost enough to make it worth getting a new car with a better miles-per-gallon rating.
5. Ask your mechanic if parts for your current model are hard to find. If they are, this could become a problem if you need major repairs. New parts of some makes may be expensive, though, so keep that in mind if you decide to go shopping.

Tips & Warnings

• Read the auto reports in consumer magazines. These carry ratings for older cars and are based on reports from the people who own them.