When you see car commercials broadcast on television, it’s hard not to gawk over the speedy performance or high-tech features of an advertised car. As the deals flash on screen, you begin to think: should I buy a new car? Those impressive ads make all car lovers want to ditch their current ride and jump behind the wheel of a new vehicle. Whether it’s a low-interest rate or an attractive offer, car buyers cannot resist the idea of buying the latest and greatest release.
With all the delight that comes from buying a new car, you have to ask yourself: is that new car smell really worth it? Many top financial experts agree that buying a new car is a bad investment. If you think buying a new car is more advantageous than keeping your current vehicle, you’ll want to browse through the following 10 reasons why it is not. Below are a list of helpful tips and insights that will explain why keeping your current vehicle is often the best option – including how it is a more economical and sustainable choice in our world today.
If your car is operating great with few mechanical issues, then why go through the process of finding a new car? The truth is, your car is perfectly fine. Keeping your current vehicle will alleviate any financial commitments, including having to make a deal with a pushy salesman. If you’ve found a knack for maintaining your vehicle’s headlights and keeping a spotless interior, then buying a new vehicle is likely not worth it – keep appreciating the one you have.
We all know the deal: once you drive your car off the lot it becomes a depreciating asset. Just like that, your shiny new vehicle starts to lose its shimmer – although the amount you lose will differentiate between vehicles. Sometimes you can expect to lose more in value than what it would cost to retain your current vehicle. This means it is better to keep investing in the maintenance of your current vehicle and wait until the repairs become more costly than the actual value.
Car buyers will not always anticipate the ancillary costs of purchasing a new car. When shopping for auto insurance, a new car owner can expect to pay a higher premium as compared to a used car owner. Auto insurance can add up fast depending on the driver’s history as well. You will need to keep in mind the expense of tag renewal fees and sales tax, which depends on the price of the car. These additional costs can do some serious damage to your wallet so it is best to know what is expected before making a transaction.
No car payment
There is no greater joy than not having the expense of a car payment each month. If you’ve been driving your vehicle for years, it is likely you have reached the end of your car loan or it’s closely approaching. Just imagine being able to use that $400 to pay off debt or plan for your next vacation. Those who are conflicted between purchasing a new vehicle versus keeping their old one should be compelled by the financial freedom of no car payment.
Potential to save
Without the obligatory commitment of a car payment, you could find yourself saving hundreds of dollars each month. Who wouldn’t love that! It is the perfect opportunity to save for your next vehicle or set aside some funds for bigger expenses. Being motivated to save money in the present will help aid you in the future. With careful planning, you can make sure all your financial decisions are made without substantial loss. Therefore, that new car can wait for another time.
Hassle of car searching
With the number of vehicles available, it becomes overwhelming when searching for the best option. You browse through several makes and models, hoping to narrow down which one is right for you. After enough research, you can visit multiple dealerships and begin wheeling and dealing with a car salesman. The negotiation process can take some time. From analyzing your finances to getting the best interest rate, buying a new car is an in-depth process – one that can best be avoided by keeping your current vehicle.
Most times, it is more affordable to repair your current vehicle then take on the cost of a new one. If you’ve owned your vehicle for a while, you’ve likely become acquainted with its quirks or flaws – knowing what upgrades you do or do not need. It can be as easy as restoring your headlights or getting some new brakes. Your mechanic will be familiar with the car and understand what repairs will fall under your budget. Just because the car is older, does not mean a little upgrading won’t make a huge difference.
Whether you’re looking to buy a truck or the best electric vehicle, the decision to purchase a new car has a direct impact on the environment. There is a level of harm associated with manufacturing a new vehicle and discarding an old one. Hence, you should keep your current vehicle until it’s no longer operable. When you trade-in your old vehicle, all its parts will be disposed of or recycled, and its leftover chemicals will be turned into hazardous waste. Therefore, doing your part to reduce the frequency of manufacturing is the best option of all.
Cherish the memories
Without a doubt, your car has seen its fair share of memories. From the first time you took your wife on a date to that cross-country road trip with your friends. No matter the occasion, your car has essentially transported you from Point A to Point B with a bunch of memories in tow. Car lovers take extreme pride in their vehicles and it often shows. Maybe your vehicle even has a name. We all become attached to our vehicle in some way, and sometimes the sentimental value is far worth keeping it around.
Optimize your future
Although a new car is fun and brings a sense of excitement to your present routine, that newness will soon fade. The new car smell will be replaced by your dog’s smelly odor or the reminisce of your takeout orders. By keeping your current ride, you can optimize your finances for other opportunities in life – whether it be starting your own business or having the funds to retire early. No matter the case, you’ll be thanking yourself in 5-10 years that you held on to your old reliable instead of succumbing to a fancy advertisement. And there’s no question whether these advertisements are convincing – just take a look!
After reviewing the 10 reasons why you should keep your current vehicle, you’ll understand that it is not always worth buying a new car. Yes, the advertisements spark a sense of joy, but being financially and environmentally responsible far outweighs the experience of buying a new car. So stop the agony of your recent car search, and begin planning for a better future ahead!