You have heard the saying “this car is nickel and diming me to death”. This may lead some to believe that they should have bought a new car months ago, or that they are a fool for keeping that old rust bucket going. You may feel that your job is in danger due to your unreliable car. You must act quickly and buy a new car right now! It is the only responsible thing to do, right?
It seems really easy to buy into this line of thinking – we have all been there. You’re transportation budget is something that is firmly under your control. A new car is a luxury, and it comes with a heavy premium by depreciating about 50 percent in three years.
The majority of the time, the cost of a new car payment is much more than just repair costs. You also have to consider the increased insurance premiums, in some cases. Secondly, you normally have options in the absence of a car, such as using public transportation, carpooling, or catching rides with co-workers. Conventional wisdom is when a repair cost more than the car is worth, it is time to consider buying another car. Some, like Clark Howard, use 50 percent for a higher level of reliability, meaning if it costs more than 50% of the value of the car, you should probably not put any more money into it. To take control of your finances, you will need to milk every last mile out of your. Get familiar with the bus routes as a backup in case your car breaks down. Honestly, a car should last at least 10-15 years.
