Should you buy a new car or fix up a used vehicle? This article reviews why fixing a used car is a good idea and what the benefits are. Here are 5 reasons why fixing a used car is better than buying a new car.
NOTE: We do not sell cars. We like cars, and we help people.
5 Reasons why fixing a used car is better than buying a new car
It used to be that you’d buy a product and expect to fix it regularly. Whether it’s an appliance or a car, you were expected to keep things in good shape. Nowadays, people have lost their education on mechanics, and many adults need help understanding the mechanics of appliances. That includes cars. Regular mechanical issues are seen as a bad manufacturer or cause a lack of trust in the car.
These trust issues have expensive results. In today’s world, owners will drive a new vehicle until it starts to break. The first sign of problems, and they are eager to swap it for the next one. With this mindset, you’ll never get out of the car-buying stage. Don’t get me wrong, buying a new car is fun and can offer peace of mind. However, there are advantages to the traditional mindset of fixing. It’s always best to keep and repair or buy a fixer-upper.
Fixing a used car is better than buying a new car:
1. Buying New is Expensive
Inflation is pricing families out of the market for vehicles. A once $30,000 car is now 60,000 for the same features a family will look for extra seating and snow safety features such as AWD or 4WD. If you’re spending $60,000 on a car, it should look more like a Lamborghini and less like a minivan.
Let’s break that cost down: if you’re spending 60k on a car, that’s 60k less you have to spend on your house, your groceries, or your kids.
2. Repairs are Affordable
Is it possible to have a nice car if it’s not new? Yes. The price of cars has gone up, while repairs are relatively the same. It used to be you’d have 5k in fixes for an older car, or you could buy a new one for 15k. Now, car repairs haven’t gone up much, while the price of cars keeps doubling.
Having high miles doesn’t mean it’s a bad car
Suppose you buy a used family vehicle for 25k, which has high miles and issues. Don’t worry. These issues are regular maintenance from a car’s miles. Higher miles don’t mean you need a new car; it means certain things on your car must be replaced. Not all parts last the life of the vehicle.
It could have more features than your other option
With a used model you can get the fully stocked version without settling. On newer models any upgrade is a kick in the budget. When its a used model they start to fall into the same price category. For example those heated seats are affordable in a used model but out of budget when you’re in the new model.
Used Cars Need Maintenance, but it will save you.
These things include the alternator, a battery, etc. Let’s say your car needs new tires, rotors, breaks, and a timing chain. A few thousand in repairs. It could be more extreme; at the end of the day, you might have $10,000 of work to put into your car. That’s still $25,000 in savings by fixing a car instead of buying a new one.
Why is my check engine light on?
3. Money Saved by Fixing a New Car Can Buy Custom Work
Most people look at that through the wrong lenses. They’d rather spend an extra 25,000 than fix a car that needs 10,000. The problem with that logic is that your new car will hit these miles and eventually need repairs. All cars need regular maintenance, including new parts.
Upgrade the used car for less
Think of it like this: With the extra money you can save, you can customize your car. You can afford a new paint job or a brand-new entertainment system and still not come close to the cost of the new model.
4. Private Loans are Better than Car Loans
You have more than one loan option
How do you finance something like this? It’s true one of the appealing aspects of buying a new car is the loans. However, a car loan isn’t the only type of loan available to you. There are personal loans, home equity loans, and various opportunities for financing. These can come with better interest rates than a traditional car loan and have more flexibility. Car loans come with rules; for example, they will finance more for a newer car than an older one. This is to protect the bank. Banks cannot exceed the car’s value with a car loan, so a car plus repairs isn’t an option. Don’t confuse the bank’s value with yours. Remember, the value of the vehicle to you is +$70,000. However, a bank repossession would be sold as is at auction; therefore, a used car is a greater liability. With a private loan, you can use the money for repairs and the vehicle without restrictions. If it’s a home equity loan, you can even take out extra to fix the house or catch up on bills.
5. No Car Payments, More Financial Freedom
If you plan on financing the vehicle, you’re looking at a more accessible payoff date. Once it’s paid, you won’t have a car payment, and you can enjoy the ownership side of life. It’s easier to put that monthly savings towards maintenance as repairs come up. These are the perks of the traditional way of ownership and maintenance. The financial freedom it brings.
https://www.loan.com/car-loans/avoiding-auto-loans-5-alternative-financing-options.html
Diagnose it at Truman’s before you buy it
Not every used model is a keeper. Before you buy, take a test drive to your Truman’s Automotive Mechanic. We can hook the vehicle up and run a report to see what areas need fixed, and what looks good. Having an expert opinion will help inform your investment decision.