When To Repair vs. Replace Your Vehicle To Save Money

Owning a car can be one of the most significant financial commitments you undertake, second only to homeownership. 

For many people over 50, ensuring your vehicle is reliable is about more than convenience; it’s about maintaining independence, sticking to a retirement-friendly budget, and avoiding unnecessary expenses. 

But how do you know when repairing or replacing your car will save you money?

Why the Right Decision Matters

For individuals nearing or in retirement, financial responsibility takes center stage. Nobody wants to spend their nest egg on avoidable car expenses or an unnecessary replacement. 

Your budget and goals are at stake if you don’t prioritize your car, so you must ensure the decision aligns with your everyday needs.

Signs You Should Repair Your Car

Sometimes, holding onto your existing car makes the most sense. Repairs can be cheaper than buying a new car, but it’s essential to understand when repairs are more cost-effective than replacements.

Repair Costs Are Manageable

Repairs costing less than 50 percent of your car’s current resale value may be worth it. If you’re unsure of the value of your car, some websites can help you calculate its value and even showcase your offer locally. 

If your vehicle is worth 10,000 dollars and the repair is 1,500 dollars, fixing it could save you more in the long term than replacing it.

Your Car Still Fits Your Needs

If your current vehicle meets your lifestyle requirements (for example, ample trunk space, fuel efficiency, or ease of use), a repair may be the best option. After all, a new car might not be as practical or could cost even more in the long run.

The Maintenance History Is Solid

Have you been diligent with routine maintenance? Vehicles with regular oil changes, timely brake replacements, and a documented service history tend to last longer. Extending its lifespan with a few repairs may be worth it.

When It’s Better To Replace Your Car

Sometimes, the costs and challenges of keeping your car on the road outweigh the benefits. This is especially true if you were involved in an accident, regardless of its severity.

After a Major Accident

Many accidents may seem minor, but they can have significant consequences. If your car has sustained severe damage, it may not be worth the cost of repairing it.

Certain accidents, such as hitting a deer, may seem simple but can cause underlying damage. Know the steps to follow after hitting a deer to make sure your car doesn’t have hidden damage.

Your Car Is Unsafe

No amount of repairs can make an unsafe car worth driving. If there are significant safety concerns, such as rusted frames, failing brakes, or outdated safety features, then replacement should be your priority.

Increasing Repairs and Downtime

If your car is spending more time at the mechanic’s than in your driveway, the disruptions may not be worth the savings. Frequent breakdowns and repairs are sure signs that your vehicle has reached the end of its reliable lifespan.

Knowing when to replace or repair your vehicle is crucial for saving money after any unexpected car issues. If you’re unsure which route to take, discuss your situation with a financial advisor, or use online tools to calculate the total cost of ownership for new and used vehicles.

Is Buying a New Car the Best Financial Choice?

Purchasing a brand-new car is a significant financial commitment, one that requires careful consideration of various factors, such as your lifestyle, budget, and long-term financial goals.

If you’re in your 50s and focusing on retirement planning, you might struggle to decide whether buying a new car is the best financial choice. Here, we’ll explore situations where buying a new car makes sense, when it might not be the best decision and tips for extending the life of your current vehicle to maximize your investment.

When Buying a New Car Is a Good Choice

For some people, buying a new car can be a wise financial decision. This typically applies to individuals who have stable, long-term employment and a clear understanding of their monthly expenses.

A new car can offer reliability, the latest safety features, and the peace of mind that comes with comprehensive manufacturer warranties.

Additionally, for those who plan to keep the vehicle for a long time, investing in a new car can provide a sense of security regarding maintenance and durability in the years to come.

When Buying a New Car Isn’t a Good Choice

However, there are scenarios where purchasing a new car may not align with the best financial planning practices, especially for people in their 50s.

For one, the immediate depreciation a new car experiences once it leaves the dealership is a significant factor to consider. The financial burden of a car payment, higher insurance premiums, and the speed at which a new car loses value can disrupt carefully laid financial plans.

In these cases, the smarter choice may be to maintain your current vehicle. Alternatively, you could consider purchasing a certified pre-owned car that offers many of the benefits of a new vehicle without the hefty price tag.

Tips for Helping Your Current Car Last Longer

Making your current car last longer is the best way to delay the need for a new car purchase, supporting your financial goals. Regular maintenance is by far the most important thing. This should include these items:

• Timely oil changes
• Brake checks
• Tire rotations

Beyond what happens at the shop, you can take care of your car at home. For example, detailing your car at home can make it look like new and extend its lifespan, as can driving cautiously and gently.

Final Thoughts

Whether buying a new car is the best financial choice depends on your individual circumstances, including financial stability, lifestyle needs, and long-term goals. 

If you decide that now is not the right time to buy, focusing on maintaining your current vehicle can serve you well in the meantime.

5 Ways to Speed Up Your New Vehicle Purchase

The process of buying a new car can be daunting and time-consuming. You have to research different models, makes, features, and even dealerships to find the best fit for your needs and budget.

However, following the right steps and strategies can speed up your new vehicle purchase and make it a smoother and more pleasant experience. 

This blog will share five effective ways to help you save time, money, and effort when buying a new car.

Know Your Budget

The first step towards a quick and easy new vehicle purchase is to determine your budget in advance. 

You need to know how much you can afford to pay each month for your car loan or lease and how much you can afford for the down payment, taxes, and other fees. 

This will help you narrow down your options and avoid wasting time on vehicles that are beyond your financial capacity. You can use online calculators to estimate your monthly payments based on your desired car price, interest rate, and loan term.

Do Your Research

Once you have an idea of your budget, you can start researching different car models and makes that fit your criteria. You can visit car websites, read reviews, and compare prices and features to find the best options for your needs and preferences. 

You can also check the inventory of the local dealerships near you to see which cars are available for a test drive. 

Doing thorough research in advance can save you time and money by helping you make an informed decision and avoiding impulse purchases.

Pre-Qualify for Financing

Another way to speed up your new vehicle purchase is to pre-qualify for financing. This means that you get your loan or lease approved in advance by a lender or dealership based on your credit score, income, and other factors. 

Pre-qualifying can give you more bargaining power when negotiating the price of your car and make the actual purchase process faster and smoother. 

You can also shop around for different lenders, like University Federal Credit Union, and compare their rates and terms to find the best deal.

Negotiate the Price

Negotiating the price is one of the most important steps in buying a new car. 

You don't have to accept the sticker price as the final offer, but you also want to avoid lowballing the dealer and risk losing the sale. 

You can use your research and pre-qualification to negotiate a fair price for your desired car based on its market value, features, and demand. 

To sweeten the deal, you can also ask for extras, such as a warranty, maintenance plan, or free accessories.

Complete the Paperwork Online

Finally, you can complete the paperwork online to speed up the final stages of your new vehicle purchase. 

Many dealerships and lenders now offer digital forms and signatures that can be filled out and signed from the comfort of your home or office. 

This can save you time and effort and reduce the risk of errors and fraud. 

You can also ask the dealership to deliver the car to your home or office instead of coming to their location, which can be more convenient.

Buying a new car can be a stressful and time-consuming process, but it doesn't have to be. 

Following these five ways to speed up your new vehicle purchase can save time, money, and effort while getting the car of your dreams. 

Remember to know your budget, do your research, pre-qualify for financing, negotiate the price, and complete the paperwork online. With these strategies, you can enjoy a smooth and hassle-free experience when buying a new car.

Questions to Ask When Considering a New Car

It's easy to buy a new car. There are so many choices, with plenty of websites telling you what makes one better than the other, not to mention the significant monetary investment in whichever choice you make. Ask yourself these five critical questions before making any decision.

Is it reliable?

Any car will break down at some point. In fact, it's probably going to happen several times over a few years. But how long can you expect your new car to last before needing major repairs? 

A smart buyer will try to get an idea of the car's quality and longevity before making a purchase. Start with the car's build quality. Is it sturdy? 

Does it look like parts have been cheaply installed, or are they well-made and durable? If you spend a little time online, you can find out what other people think about the car's reliability.

Do I really need all those extras?

Certain cars come with many goodies that promise to make your life easier; however, most of those extras cost extra money, and not all are worth it. 

Try asking friends or colleagues who already have a particular car if they have any problems or if there were features they wish they had. 

You can also ask if anything, in particular, functions properly all the time or whether they break down consistently. It never hurts to ask around for advice or guidance in these decisions.

Does it fit my lifestyle?

If you're looking for a car to take your family on vacation, a sporty convertible may be ideal, but if you live in an area that frequently snows, there might be better ideas. 

It is essential to think about all aspects of your life and how they will affect your driving experience before making any purchase.

Am I getting the best deal?

It seems like frequently you're getting a good deal when you buy a particular car. However, you need to pay attention to all the small details to ensure you're paying only a little. 

The best way to find out if it's worth buying a particular car is to do some online research. You can check out reviews of similar cars and get an idea of how they are priced. 

Also, explore the sites where people sell their cars. You can find out what other people got for their money and possibly get a better deal because of this.

Should I lease or buy?

Many people wonder whether they should buy a new car or lease one. Here's how you can make the right decision. Leasing is an option if you will only drive your car for a few years. 

In fact, most leasing contracts are for three years or less. However, if you plan on driving your car for longer than that, then it may be better to buy instead because leasing costs can add up after several years, and buying allows you to keep the same car for a longer time.

Ultimately, when deciding which new car to buy, it's essential to take the time to consider each question carefully. By taking the time to research and ask yourself all these questions, you will gain more confidence in your decision, whatever it may be.

Need to Buy a New Car? Tips for Qualifying for an Auto Loan

Owning a vehicle is essential for many reasons, such as having transportation to work and ensuring your children have access to school and extracurricular activities, health appointments, and other commitments.

However, when it comes to purchasing a new car, there are some steps you have to overcome, especially if you are not paying with cash and seeking a loan. 

Lenders will consider different factors when approving loan applications, so knowing as much as possible about qualifying is essential.

Maintain Regular Employment

The number of months or years of employment to qualify for an auto loan varies, depending on the lender. In some cases, a few months of a stable income is acceptable, whereas other financial institutions might require at least one full year. 

In addition to current employment, most lenders ask for verification of stable work history, with no excessive gaps between jobs. It would be best to have regular employment before applying for a loan; however, other factors, such as good credit, could increase your odds even with minimal employment history.

Satisfactory Credit

Car loans are approved for all types of credit, from excellent to good, fair, bad, and no history. The score necessary will depend on the vehicle’s cost and the lender’s requirements. 

Your application will likely be approved if you have a satisfactory credit history. However, a bad credit score often shows that you aren’t as reliable with past credit approval, and the uncertainty from a lender may lead to a denial. 

The financial institution could grant your loan, but with stipulations, such as higher interest rates and other fees.

Have a Down Payment

Having a ten or twenty percent down payment could lead to lower borrowing amounts and more equity in the beginning. You could also encounter less interest and lower monthly payments. 

Trading in another vehicle could also increase your odds of approval. To determine the best options, it would be essential to speak with the dealership’s representatives beforehand. 

Professionals like those at On-Trac Auto Sales can help to make your application process as simple, straightforward, and stress-free as possible.

Identification

You should never apply for a loan without a driver’s license, passport, or state-issued identification card. These documents are necessary to verify your identity. 

It is also best to apply for loans in your state. Some lenders may allow out-of-state applicants, especially those who have just moved to the state or co-applicants trying to boost the odds of a loved one’s application. 

Most lenders require a utility bill, home loan, lease, or rental document for proof of address.

Regardless of your credit history, do not assume you’re ineligible to buy a new car. These are helpful tips to increase your odds of qualifying for an auto loan and receiving the transportation you need for personal and professional commitments.

4 Ways To Evaluate If You Can Afford A New Car

While you may be itching to get behind the wheel of a new car, they tend to cost quite a bit of money. Depending on the type of vehicle you desire, you could find yourself facing a substantial loan payment each month for almost a decade. 

To figure out if you really can afford a new car, here are four evaluation tools you should always use before heading to the dealer's lot.

Your Take-Home Pay

First of all, consider how much money you actually bring home from your job. As a general rule, it is recommended that you only pay no more than 10% of your take-home pay towards a car payment. 

If after figuring up your other bills and how much money you'll have leftover you find you'd be spending well over 10% of your monthly take-home pay on a new car, you may need to look at other options.

Car Insurance Rates

Along with paying for gas, maintenance, registration, and other regular expenses, there will also be the matter of paying for car insurance. 

Since this can vary depending on the type of vehicle you want, your driving history, and other factors, don't buy anything until you have contacted experienced insurance agents to get a quote on your insurance rates and discuss what options you may have to make your insurance as affordable as possible. 

For example, you can reach out to The Lofrumento Agency, Inc. for car insurance recommendations.

Own or Lease

If you are like many people who want to drive a new car every year or so, you may decide to lease a vehicle instead of buying it outright. If you are on a tight budget but really want to have a new car, leasing may be a smart way to go. 

In many instances, you will need less money down to buy the car, have smaller payments for a shorter period of time, and then get to hand it back to the dealer a year or two later. 

However, if you choose this path, remember to keep the car in great shape and watch your mileage, since additional costs can come if you mess up the car or drive it more than anticipated.

Your Loan Terms

Finally, if you can only afford a loan for your car that has you paying on it for the next decade, chances are that you can't afford the car. Since most experts recommend loan durations be no more than 36 months for a used car and 60 months for a new car, keep this in mind as you look around.

By using these evaluation tools, you can make a smart financial decision regarding your car purchase.

Lease vs Buying a Tesla - Which Option Will Help You Get the Best Deal?

Because there are now more Tesla's on the road today, there are also many more used Tesla's available for people to purchase. With vehicles becoming more and more common to buy, there are obvious benefits to purchasing a used Tesla. There are also some reasons why people may want to avoid it and buy new or lease. 

Buy a Tesla

Some may see the purchase of a used Tesla as a risk or that it is not the best option for someone who has trouble getting along financially. While the purchase price may be lower, the repairs that have been performed on the used Tesla may not be as good as the new vehicle. 

There are also other reasons as well. When you are shopping for a Tesla to purchase, you must be thorough when searching. Look at the vehicles in your area, in your state and region, so you are sure to get the most for your money.

Start Your Search

Before you do some serious shopping, look at Tesla.com, you should search their lists of new and used Teslas that have to sell. The vehicles they offer may be the best for someone looking for a used Tesla, and the prices they offer will be lower than Teslas. 

Buy a Tesla

Second, get some quotes on used car websites like Carmax.com, Carvana.com, and UsedCars.com. These cars are in high demand, so when the market is heating up, you may be able to get a better price at these other sites. 

After getting the quotes, you have to decide if you want to buy it or lease it. You have to understand if you will still need the car at the end of the lease period. 

Tesla does not allow you to buy the car at the end of your lease period. They want your car for the autonomous taxi fleet that they plan. So buying the car is your only option if you want to keep it permanently.

After calculating the numbers for both purchases and leases, the lease is better if you do not need the car at the end of the period. A lease is better than a one-time purchase in most situations because, at the end of the lease period, you are free to do whatever you want.

4 Questions You Should Always Ask Your Auto Loan Lender

If you're looking to buy a new car, you are probably also looking to get an auto loan. You shouldn't just sign on the dotted line right away when you get an offer, though—you need to make sure you're working with the right auto company. Below are four of the questions you should definitely ask any prospective auto loan lender.

How Much Will I Pay?

First, you need to know how much you're going to pay for your vehicle in total, not just what you are going to pay on a monthly basis. Many people take out loans thinking that they're saving money by having a low monthly payment. 

The combination of the interest rate, servicing fees, and the length of the repayment term can actually cause them to spend far more than they assume. Take all those factors into account and ask your auto loan lender for the total price of the loan.

How Do I Pay?

Next, you'll want to find out your options for paying. Find out when your payment is going to be due and how you're going to be expected to pay. Learn whether or not the lender takes online payments and what other types of payment they might take or prefer. 



This is also a good time to figure out what happens if you make a payment early or if you make payments more than once a month.

What Happens in an Emergency?

You also need to know what happens in an emergency. Who do you contact if you are unable to make a payment? What happens if your car is totaled? What do you need to do if something radically changes your income? All of these are questions that you need to ask before you sign. That way, you’ll be prepared for any worst-case scenarios that might come up.

How Do I Access My Information?

Finally, figure out how you access your information. Some states might need you to present a letter from the lienholder to register your car, for example, while others might just need the contact information from the lender. 

You may also want to be able to access your payoff information to determine how to pay off your car more quickly. Most lenders will be able to direct you to a website that will give you all this information and more.

Don't be afraid to ask your lender questions. The more information you get now, the better prepared you will be for your loan. If you can do your research before you buy, you'll be able to get the car that's right for you at a price you can actually afford.

Mistakes Most People Make When They Buy a New Car

Buying a new car or truck is a very exciting process, but there are a few potential pitfalls many buyers fall victim to. Luckily, with a solid plan in place and a little bit of patience, you should be able to avoid some of the most common mistakes that people make when buying a new vehicle.

Not Doing Enough Research

It is an unfortunate fact that many people head to car dealerships without spending any amount of time researching the makes and models that they are interested in. Well before you even think about applying for a loan or signing a pink slip, you should first research the pros and cons of each type of car you are considering.

You could find that a vehicle that you are interested in is riddled with expensive mechanical issues that you want to avoid at all costs. Dealerships aren’t likely to tell you these sorts of negative facts when they’re trying to make a sell so you need to do your research first.

Getting a Loan from the Dealership

While it might be tempting to get a loan directly through the dealership, those companies don’t always have the best rates. The dealer is going to do everything in their power to get you to sign paperwork on the first day, and they could offer you a seemingly good loan that will end up being very expensive in the long run. 



That is why you should shop around for auto loans before you head to the dealership. Know how much you can get approved for and what the interest rates will look like, and compare the offers from multiple lenders before you accept any loan.

Not Accounting for Ongoing Costs

Your monthly payments will only be one of the many expenses that you are going to run into as a car owner. In addition to the loan payment, you will also need to consider maintenance costs, potential repairs, and the fuel efficiency of the vehicle. 

Products like tires must be regularly purchased as well, and the replacement parts might be prohibitively expensive.

Trying to Lower the Monthly Payments

Getting your monthly payments as low as possible probably seems like a great idea, but you need to consider how much the loan is going to cost you over time. With low monthly payments, the life of the loan is going to be much longer, and that means the interest will build up. 

Your lender should be able to tell you exactly how much the car is going to cost once you are done paying off the loan.

The final step in this process is taking the vehicle out for a test drive. Even if the car or truck is brand new, you should still spend a little bit of time behind the wheel to make sure that you love driving it. Once you’ve found the right car, the right loan, and the right price, you ready to sign.

How to Save Money on Your Next Car

Car dealership (Photo credit: Wikipedia)

If you are in the market for a new car, you may think that there are simply no ways for you to save money on your purchase. However, this cannot be further from the truth! There are countless ways for you to save money on your next car, and we are going to examine a few of the top methods here.

Conduct Some Research First

The fact of the matter is, not all car dealerships are equal. Some of them have higher prices than others, and some offer better deals. With that said, it definitely pays to shop around and conduct a bit of research before you step foot on a dealer's lot.

There are many websites where you can discover the average selling prices for various cars. In this way, you will know whether or not a dealership has overpriced its vehicles. Additionally, by accessing the Internet, you can shop around for the cheapest and best vehicle of your choice. 

Obtain Your Own Financing

Before you begin shopping for a car, you need to determine just exactly how much money you can afford to spend on one. In short, what size of a payment can you fit into your monthly budget? Contact your bank or local credit union and apply for a pre-purchase loan. If you qualify, you will be better prepared to determine what you can afford.

Try to save up as much money as you can for a down payment. This will help significantly in lowering your monthly payments or the term of your loan. Once you have been pre-approved for a loan, you will have about two months to find a car you wish to purchase.

Use the Power of Negotiation

After you have obtained financing and determined what you can fit into your budget, you will then be prepared to visit a few dealerships. Keep in mind, though, you should always stick to what you want to spend. In other words, never let a dealer take advantage of you. Additionally, make sure that the price you are offered includes everything.

By “everything,” we mean the price of the car, taxes, the cost of the title, tags and any other applicable fees. All of these expenses added together equal what is known as the "out of door" price for the car. Furthermore, never conduct negotiations over the phone or Internet--always negotiate in person. 

Get the Most for Your Trade-In

If you want to use your old car as a trade-in for the down payment, be sure to find out its Kelley Blue Book value before visiting any dealerships. Furthermore, do not mention your trade-in to the dealer until after you have negotiated the price of the new car. In this way, you will get a much better deal for both the old and new cars.

Never Give in to Pressure

The best tip when shopping for your next car is to never give in to pressure. A dealership is going to try to pressure you into buying one of its cars right then and there. The salesperson does not want you to think about your purchase because you very well may change your mind. However, remember that it is your money, and you have every right to walk away.

There are other dealerships that may offer you a better deal. If you do not like a price or need time to think about a deal, ask the salesperson for their business card and tell them you will call after you have thought over your decision. When you use these valuable tips, you just may be able to save hundreds or even thousands of dollars on your next car.


Bill Akintoye works at Shabana Motors in Houston, TX. They buy used cars and provide appraisals in fewer than thirty minutes.