Wheels on the South has always been committed to providing exceptional service and valuable insight so that our customers can make informed decisions regarding their vehicles. Recently, while talking with other industry professionals at a training event, we discovered an interesting revelation: many people prefer to buy new cars than to restore their current vehicles, perhaps because they don’t consider the long-term implications.
This blog will discuss the latest industry trends, and why maintaining your vehicle may be a better financial decision in the long-term. We’ll also discuss when buying a new car is the best option for you. Please feel free to contact us or come by our shop if you want more information, insights, or an appointment.
The Decision Dilemma
It can be difficult to decide whether to replace your car or to maintain the one you have. Many drivers are faced with this dilemma, weighing up the pros and cons between upgrading to a more modern model or investing in maintenance of their trusted companion.
A new car promises the latest technology, enhanced safety features and a brand-new start. Maintaining your old car can be a cost-effective and environmentally friendly way to keep you in the vehicle you trust.
It is important to make an informed choice. You can choose the option that best suits your lifestyle, budget and needs by understanding both options. You can navigate this dilemma with confidence by carefully evaluating both the benefits and drawbacks.
A monthly payment for a new car compared to the average repair invoice
Let’s look at the numbers. According to our research, the average repair bill at Wheels on the South will range between 2 and 3 monthly car payments by 2024 depending on the vehicle and the repair. You read it right, maintaining your existing vehicle can cost less than monthly payments for a new one.
Let’s now address the other elephant in the living room-rising auto prices. In the last two decades, car costs have increased by 210%.
Why did it happen? In the past, interest rates were hovering between 2-3%. This made price increases more acceptable for consumers. With interest rates rising, things are changing. The prices that you are offered at a dealership or car lot may be different from the ones you received the last time you went car shopping.
New Isn’t Always Better
It is important to educate the customer. We were all raised in a time when low interest rates made buying new cars seem easy. Consumers must carefully weigh their options as interest rates rise.
It is often more cost-effective to repair and maintain your vehicle than purchase a new one. Here are some of the reasons why choosing to repair your car could be the best decision for you.
- Cost savings: Repairing your existing car is more cost-effective that purchasing a brand new vehicle. Repairing your car is a better option than buying a brand new vehicle, which comes with significant upfront costs.
- Extend the life of your vehicle: Regular maintenance and timely repairs will extend its lifespan. Minor issues can be addressed before they become more serious, preventing bigger problems. This will keep your vehicle running smoothly for many years.
- Comfort and Familiarity: Many motorists develop a feeling of familiarity with their vehicles. You can maintain your familiarity with your vehicle and enjoy its comfort and convenience, without having to switch to a different car.
- Personalization and Customization: You may have personalized or customized your car over time to meet your needs. Repairing your vehicle will allow you to maintain these customizations.
- Environmental Concerns: Choosing to repair your car over buying a new one can have positive effects on the environment. By extending the life of your vehicle, you can reduce the need for new cars and help conserve resources.
- Lower Costs of Insurance: Insurance premiums are higher for newer vehicles. Repairing your car rather than buying a new vehicle can help you save on insurance costs, which will add up to a significant cost saving over time.
- Convenience & Minimal Disruption: By repairing your existing car, you can avoid the inconvenience and disruption that comes with shopping for a brand new vehicle. You won’t have to worry about the logistics of trading in or selling your old vehicle, negotiating with dealerships or adjusting to a new car.
You can determine if repairing your car is in line with your preferences, needs and financial goals by evaluating these benefits.
When A New Car Makes Sense
There are some situations when buying a brand new vehicle is a better option than repairing the one you have. We believe that maintaining and repairing a vehicle is important, but there are times when the costs of repairs outweigh any benefits. This guide will help you decide when it’s time to buy a new vehicle:
- Repair Costs Exceed Vehicle Value: If the repair costs exceed the vehicle’s current market value, you may want to consider selling your car.
- Safety Concerns: When your vehicle is experiencing serious safety problems that can’t be addressed by repairs, like structural damage or malfunctioning features, you should prioritize your safety. You may want to consider buying a safer car.
- Want for Modern Features: You may want to purchase a car with modern features such as improved fuel efficiency and safety.
Repairing and maintaining your vehicle is often a cost-effective solution. However, it’s important to evaluate your circumstances and weigh the pros and cons. You can make the best decision for your budget and needs by considering factors like repair costs, performance, safety and personal preferences.
The Hidden Costs of New Cars
Depreciation & Value Loss
Depreciation is one of the biggest hidden costs for new cars. As soon as you drive off the lot with a brand new car, its value starts to decrease. A new car loses on average 20% of its original value in the first year. This continues over time. This rapid depreciation has serious financial consequences, as you may end up with a vehicle that is worth less than you paid for.
Depreciation can be a key factor in making an informed choice. You may face a significant loss if you plan to trade or sell your car within a few short years. These hidden costs can quickly add-up, turning a seemingly smart purchase into an expensive financial burden.
Insurance Costs and Registration
Insurance and registration fees are another hidden cost. Insurance premiums for new vehicles are usually higher due to the higher value of their market and potential repair costs. These higher premiums can have a significant impact on your monthly budget.
Registration fees for newer models are usually higher. These fees can be expensive depending on where you reside. They add to the cost of owning a vehicle. It’s important to consider these costs when purchasing a new vehicle to avoid unpleasant surprises.
You can make a better financial decision if you are aware of the hidden costs. Understanding the whole picture will help you make an informed decision that is in line with your budget and financial goals.
Repairs may save you money in the long term
Wheels on the South is not only about fixing cars, but also empowering customers to make smart financial decisions. Consider this: opting to repair your car instead of buying a new one could save you thousands of dollars over the course of time.
Don’t throw away your vehicle when you receive a large repair estimate. Consult our comparative analysis and weigh your options. At Wheels on the South we are here to guide you through the maze that is car repair costs, one at a time. We’ll repair any vehicle, old or new, at Wheels on the South, in Cheyenne, WY. Schedule an appointment Today!
