Your cars check engine light is making a more consistent appearance.
The air conditioning no longer works andsummer is coming.
Plus, the car is not in its youth by any means.
So, should you repair or replace your car?
Heres how to make the call.
Car Prices and Insurance Costs
Its not an easy choice to make.
Car prices, both new and used, have skyrocketed in the last few years.
Car payments have also gone up.
Thats partially because of higher interest rates and partially because the average car price has risen.
New car prices average $48,641, according to CarEdge.
Though you’re able to still find some.
Despite the higher prices, higher interest rates and higher insurance rates, new car sales havent lost momentum.
The older vehicles keep repair shops busy and raise the demand for, and prices of, older parts.
Heres a list of some of our favorite ways to save.
We will look at each one a little more in depth.
This is also important to consider: Do you still owe money on it?
How much is your loan, and is it worth refinancing?
Lets take a look at my car, for example.
Online calculators valued my car between $2,298 and $8,332.
Local similar cars for sale were priced from $6,999 to $17,000.
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Drowning in Expenses?
Maybe youre scrambling after your car broke down.
Or you got a medical bill you werent expecting.
Or inflation has finally pushed your budget over the edge.
You dont need to go it alone.
When money is tight,these resourcescan help you manage unexpected expenses without stress.
The mechanics suggested replacing the back brakes, but there were no immediate issues.
The total was $3,000 in car repairs.
So, repair or replace?
Financial experts state that amonthly car loan paymentshouldnt exceed 10% of your monthly income.
This might be a good investment to help you decide whether you should repair or replace it.
Its also good to look at how long a car will likely last and how much it gets driven.
Selling your car yourself gets you more money, which matters if you still owe a lot on it.
Be honest, because there are penalties for misleading a buyer.
Ultimately, I decided to fix the Mini Coopers brakes because it was a safety issue.
Ill probably get the air conditioning fixed, but Ill need to get a couple more estimates.
A factor going into my decision was how much my car gets driven.
Older cars also have cheaper insurance costs, which saves me a few hundred dollars.
Hopefully, it wont need any additional repairs for a year or two.
We Dare You to Take Control of Your Debt
Up for a debt challenge?
In 10 days,these 10 practical stepscould help you get back on the right financial track.
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The Penny Hoarder contributor JoEllen Schilke writes on lifestyle and culture topics.
