Signs That You Should Consider a Different Vehicle
For most drivers, you will want to think about trading in your vehicle at some point. However, knowing when the right time to do so isn’t so obvious. Here at Broadway Credit, we will help you get an idea of when you should trade in your car and consider purchasing a different vehicle.
[ READ MORE: How Much Should I Put Down as a Down Payment for a Car? ]
Driving Your Vehicle is Dangerous
Your vehicle should never be dangerous while driving. If something is making your car unsafe to drive, such as a faulty engine, transmission, airbags, seatbelt, or something else, seek a quote from a mechanic to fix it. If the bill is too high for you to repair, consider trading it in.
Repair Costs are More than the Value of the Car
Now, how can you tell if the repairs are too high? First, you should understand how much your car costs. Kelley Blue Book and Edmunds are popular tools to use to estimate the value of a specific car with a certain amount of mileage and condition. If repair costs are more than the value of the car, you’d be better off trading it in for a different vehicle.
You Had a Major Lifestyle Change
Over time, you may notice some major lifestyle changes. Perhaps you are starting a family and need a bigger vehicle. Maybe you wish to do some off-roading frequently and your current car can’t handle it.
When Should I Hang onto My Vehicle?
We’ve covered a lot about when you should trade in your car, so let’s discuss reasons why you shouldn’t. First, you should never trade in your car if you still have an outstanding balance on it. If the vehicle isn’t fully paid for, it’s not fully yours to sell. Doing so will only jeopardize your finances, so make sure that you don’t owe anything on it first. If you still plan on doing that, make sure that the value of your trade-in is more than what is owed on the car so you can fully pay off that loan; also, be prepared to borrow more on your next loan since you are no longer using the trade-in to lower your payments.
Additionally, you should think about how it’s functioning for you now. If it helps you reach your destination safely and isn’t draining your money, it could be worth hanging onto your vehicle for longer. Afterall, it’s okay to own an older car as long as its age isn’t causing issues. Ultimately, though, it’s up to you on when you decide to trade in your vehicle.