As a car owner, you rely on your vehicle a great deal in your daily life. It gets you to and from work and allows you to interact with the world around you. And, when your car is taken out of commission, either by an accident or a mechanical malfunction, you may wonder what you should do next. You will be faced with the decision between whether to repair your vehicle or to replace it with a new one. In order to determine the correct choice for you, you need to consider the pertinent factors and gather all of the necessary information.
Compare The Repair Costs And The Value
First and foremost, you will need to take your car in for an estimate for auto repair services and get an idea of what you would be spending to fix your car. If your car isn't in working order, have it towed to a repair shop such as DR Will's And Kahuna's Auto Repair. After your car has been evaluated, you will need to consider a few factors.
Find out the book value of your car. If you are still making payments on a car loan as well, find out the cost to payoff your loan. The comparison of these numbers will help you determine whether it is worth your money to repair the car.
If repairs will cost you as much as or more than the value of your vehicle, this would be a time when you would want to consider buying a new one. This is mainly because you could shell out the money for extensive repairs, and then have your car break down again in the near future. The financial investment in your car would then be more than it was worth.
Find Out About Your Insurance
If you were in a car accident, you should also keep your insurance company in mind. When your car is totaled or near-totaled, your insurance company will often offer your a payout to get rid of your car rather than repair it.
Before you make any decisions, find out what your insurance company is offering you. If they give you the book value or close to it, you could put that payout towards the down payment on a new car. This could save you a great deal of grief in the future.
Consider What You Can Afford
If your car was paid off prior to the breakdown, and your insurance company isn't going to help, you need to carefully consider your financial situation. Can you afford extensive repairs to your car? Or, can you afford a monthly car payment if you opt for a new vehicle? Be realistic about your finances and needs when considering this factor.
If you keep these issues in mind, you will easily be able to decide between fixing and replacing your vehicle. So, gather all of the needed information, and consider your options very carefully.