If you are in the market for a new or lightly used car right now, you may want to examine all your options before taking this step. According to the Bureau of Labor Statistics, used car prices are up a whopping 41.2% from a year ago, while new car prices are 12.4% higher from last year (Source: US Bureau of Labor Statistics).
With these prices so high, you may want to consider ways to keep your current vehicle running a little longer. In this month’s blog, we examine the cost and benefits of repairing your current vehicle or purchasing a brand-new or newer vehicle.
Decisions, Decisions
There’s a lot to consider when it comes to making the decision to keep your vehicle and make significant repairs. One important up-front consideration is how diligent you have been in keeping your vehicle well-maintained. For example, if you have kept up with frequent oil and fluid changes, ongoing mechanical inspections, and servicing of major systems such as brakes, transmission, and others, then a major repair may be worth it in the end. On the other hand, if you have not supported ongoing maintenance, then your vehicle could end up with very costly repairs beyond any present problem with the vehicle.
Other things to think about include:
- Has your vehicle had a history of problems that never seem to go away? Sometimes vehicle owners just end up with a “lemon” that always seems to have a problem. If that’s the case, and it causes major frustration or stress for you, then it may be time to think about a new vehicle.
- Do your driving habits and needs depend on having a highly reliable mode of transportation? If so, what is the cost of keeping you off the road when the vehicle is getting repaired?
- Can your long-term budget support future repairs for unforeseen issues?
If you are unsure about your vehicle’s current health, then it is advisable to bring it in and have it evaluated by a service professional. The experts at Car Kings can inspect your vehicle, review your vehicle’s service history, and give you some ideas on possible problem areas. While our service professionals are unable to predict what the future might hold for your vehicle, they can examine it closely to see where there may be developing problems. They can also advise you on any repairs that might be necessary to keep your vehicle running smoothly.
New Purchase Woes
Whether you are thinking of purchasing new, or slightly used, keep in mind that vehicle inventory is low right now and prices are high. The law of supply and demand is directly impacting consumers who want to replace their current vehicles.
Keep in mind that if you do decide to go the purchase route and are willing to pay a higher price now, you will need to factor in additional costs including possible auto insurance rate increases, taxes, and other fees. However, if you purchase from a dealership, make sure to check with them on warranty, which could benefit you in the event the vehicle has any mechanical issues.
Because the used vehicle market is difficult, you should always make sure to do your research before making a commitment on a vehicle. Take a thorough test drive and ask for service history or look them up through online services. If you really want to be safe with a purchase, you may want to have a service professional inspect the vehicle prior to purchase. Talk to us at Car Kings on how we can assist you with a used vehicle purchase.
In today’s difficult economic times, it pays to be more conservative about large investments like a vehicle. Make sure to think through the costs and benefits of repairs over purchase. Not all costs are monetary, and so it is helpful to think about how this decision can affect your time, lifestyle, and overall stress level.
Give us a call today at Car Kings and speak with a service professional about your concerns.