How do I know when to get a new car and stop repairing my existing one?

I get asked this question quite often, but in some cases not often enough. Seems some people have a "problem" with a $300 a month new car payment, but they are perfectly comfortable with paying the same if not more on monthly auto repair bills and accept the inconveniences that come with them. I don't know what "drives" people to a high mileage goal? I hear customers comment "This car has to go another 20,000 miles" or brag about how many miles they are determined to put on their vehicles. "I am going to drive this vehicle 180,000 miles whether it likes it or not". Now if this is a challenge for you, by all means take it, but I can think of many other challenges less costly. Granted, some cars will last a long time and do so with relatively low maintenance cost, but this is not the norm.

How does one know when to throw in the shop rag and get a new car? Well, I don't have a crystal ball bearing, but I can provide some helpful guidelines to assist you in your evaluation process or your car or when buying a used car.

First: Perform an evaluation of your vehicle yourself using our used car check out list from our Website. The used car check out is self explaining and easy to use. If you have a concern or a potential problem you might uncover with an item on the list, have your auto mechanic inspect it during the next step. A great ebook about buying a used car and how to inspect the vehicle yourself is Inspect Before you Buy!

Second: Determine what future auto maintenance cost will or could be. I have assembled a helpful automotive maintenance schedule to help you forecast costly maintenance items. Print out the maintenance schedules that are closest to your current mileage and the next higher mileage schedule. Take your car to the mechanic (hopefully the mechanic that you regularly visit and have a good relationship with) and pay them to inspect all the items on the two schedules. The cost of these inspections should be fairly inexpensive, and the information they will provide will be more than worth the expense. Add up all recommended repair costs plus all previous repairs during the year. Divide this number by 12 to determine your average repair cost for the given year. This number will not however include any breakdown or unexpected car repairs.

Third: How much is your car worth? Selling a car? Trading in your vehicle for a new car is the easiest, but will not bring in the most money for you. The new car dealer will pay you a wholesale price for your car, and in doing this you are leaving money on the table. Selling a car to an individual at a retail price will require a little more work on the part of the seller, but there can be greater financial gain in doing so. Free Car Quotes can provide you with similar "comparable" vehicles like yours, so you can get a feel for the market in your area. I recommend going to see and test drive your competition before you set a price on your car.

Take along the used car check list and evaluate the competition just as you did your car. Our free used car check list can be found here Used Car Check List How does your car compare? Could you place a higher price on your car after your evaluation, or is your competition in better shape? Another helpful page on this site is Used Car Buying Quotes where you can obtain loan, trade in, and retail values for comparables. You should do your homework with these free quote services and get a vehicle base value, but you can always add or subtract from that number things like overall appearance, well kept maintenance records, upgrades (stereo equipment, tires and wheels, bug shields...etc) and customer added items.

Fourth: How much will your next car cost, and how will you pay for it? Buy a used car or new car?? Now that you have determined your yearly repair costs, the value of your current vehicle, and a possible sales price you must calculate the monthly payment of the new car. Paying a larger down payment on the new car will lower the monthly payment. How much of the sale of your current car can you use as a down payment on the new car? When buying the new car be sure to take advantage of rebate incentives and low or zero interest on certain models the factory is trying to move out.

Keep in mind you are replacing a vehicle that you know will be incurring future repair costs, so don't take on more money debt than you can handle. Hopefully you have a month or two before these expected car repair bills will be required, so you will have some time to price shop the new car or used car, and have time to sell your car.

Some things to consider: In my opinion I would replace your current vehicle if your average yearly auto repair bills are more than ten percent of the price of the new car you would like. These four steps are just a guide to help you remove the emotion tied to selling a car and buying the new or used car. After doing these steps you might find that you are not currently driving a "money pit" and the maintenance schedules and check list gave you an easy way to forecast and plan for up coming repair expenses.