Every year, millions of people decide to purchase a new or used vehicle in the United States. In 2012 alone, over 40 million used cars were purchased — and that number doesn’t even take into account the number of new cars purchased (about 1/3 that amount). However, many car owners are unsure of when the right time is to make a purchase. If you’re thinking about buying a new vehicle, but you’re not sure whether or not you should, take a look at these three signs it’s time to purchase another car.
Your Car Has Turned into a “Money Pit”
Some older cars can be fun to drive, but they can also cost a lot in terms of maintenance. The most expensive repairs for a car can be in the engine and the transmission, so when these parts start having problems, you could wind up in debt. If you find yourself dumping money into a car you no longer have to make payments for, visiting one of the new and/or used car dealerships in your area may help alleviate the stress that frequent repairs can cause — and save you money in the long run.
Your Old Car Costs You More Than a New Car Might
Say, for example, that you bought your old car at a time when you had poor credit. You may have been stuck with financing that gave you high payments and a high interest rate. Add in the average depreciation of a new car within the first two years (about 20% to 30%!), and you could be paying far more than your car is currently worth. While it is possible to refinance, you may find that it’s no longer worth paying a lot for an older vehicle. Seeing one of your local car dealerships to look at new and used vehicles can be a good idea if you are able to get a better deal today.
You Simply Want a New Car
Hey, there’s nothing wrong with wanting to drive a brand new car! Although used car sales outnumber new car sales by 3.3 to one in the United States, plenty of people trade in their old vehicles to purchase or lease a brand new one. Some people choose an entirely different car; others like to stick with a newer version of the same model.
For example, if you owned an older Jeep Grand Cherokee and want a new car, you would probably take it to a Jeep dealership for a trade-in. If you’ve enjoyed driving your old Jeep Grand Cherokee, you might decide to get a new Jeep Grand Cherokee for the current model year. You may also decide to test drive other models and make a different choice.
Other times, you may want to switch for a different reason. If you’re driving a manual transmission vehicle, for instance, you might decide to switch to automatic transmission instead. You’d be in luck, as automatic vehicles outnumber manual 10 to one in the U.S. The reasons for getting a new car can vary, and there’s no right or wrong reason to look at your options.
Have more questions about when it’s time to purchase your next vehicle? Leave a comment below. Continue your research here.