Should I buy a new car?

Cars don’t last forever no matter how much we want them to. There will come a day when getting a new set of wheels is a must, but when? If you’re unsure about buying a new car, here are a few signs that could mean it’s time: 

Your car doesn’t meet your needs 

Outgrowing your vehicle happens more often than you think. Because people have ever-changing needs, the perfect car you bought five years ago may not be the right match for you today.  

For instance, a two-seater sportscar is not the best fit for a growing family. Alternatively, a huge SUV with a ton of storage space may not be a good vehicle for people who often drive alone. If your car doesn’t match your current lifestyle, it’s probably time to buy a new one. Always consider your short-term and long-term needs before purchasing a new vehicle. 

Your car needs frequent repairs 

Older cars tend to need more repairs, it’s reasonable and usually unavoidable after years of use. However, if your car breaking down becomes a growing trend instead of a rare occurrence, it’s time to start car shopping. 

When you’ve had your car for a while, it’s easy to excuse minor issues that pop up and attribute them to the typical wear and tear. Sometimes, you’ve even grown accustomed to these problems and learned to work around them. But remember, a car should make your life more convenient. Having to bring a car to the mechanic every other month (or even more frequently) is the opposite of that. Also, a car that needs frequent repairs can be costlier in the long run. 

Your repair costs are getting expensive 

Speaking of the cost of repairs, one of the surest signs that you need a new car is when the repairs are worth more than the vehicle itself. If the engine, for instance, needs a total replacement, it could cost anywhere between $1000 to $4000. This is a hefty price to pay to fix a car that has a ton of mileage, gone through years of wear and tear, and probably has other underlying issues. 

Sometimes it makes more sense to buy a new car than to fix your current one. Cars depreciate in value rather quickly; they lose around 10% to 15% of their original value as soon as they’re driven off the dealership. If your car has been with you for a while, it may be better to put your funds towards a new vehicle instead of repairs for your old one. 

Your car is no longer safe to drive 

If your car isn’t in good condition or has a history of problems, it may be unsafe to drive on the road. A car that’s in poor condition could stall at inopportune moments like when you’re speeding through a busy highway or trudging uphill. Not only could this put your safety at risk but the safety of others on the road, as well 

Older cars also have less advanced safety features compared to newer ones. If your car has outdated or missing safety features like airbags, blind spot monitoring, forward collision alerts, and the like, you might want to seriously consider a new vehicle. 

When you buy a new car, you’re getting all the upgraded safety technology that comes with it. This could help give you better peace of mind while on the road and provide needed assistance while driving. 

Your car insurance and maintenance costs are increasing 

Even if your car isn’t worth much anymore because of depreciation, you may still have to pay high car insurance premiums. Regardless of how well you’ve maintained your vehicle, older ones are generally considered high-risk because of their age. So, as your car gets older, you may see the insurance premiums get higher. 

Now, it could be time to buy a new car when the insurance you’re paying is way out of step with the car’s current value. Another telltale sign that it’s time to get a new car is when operating costs are getting out of hand. Older cars are typically less fuel-efficient so you may be spending more on gas with your current car than you would if you switched to a newer model. 

You can afford to buy a new car 

This is an important deciding factor when getting a new car. The best time to buy a new car is only when you can afford it. It won’t do you any good shopping for a new vehicle if your finances aren’t in good shape.

Before buying a new car, review your finances carefully and see whether you can manage car loan repayments. You can use a borrowing power calculator to estimate how much you could potentially borrow on your car loan. You could also use a car loan repayment calculator to understand future car finance repayments better. 

Final verdict: Should I buy a new car? 

If you emphatically relate to all the scenarios above, then it may be time to finally buy a new car! A successful car purchase often starts with a good car loan. Check out our range of low rate car loans with favourable terms and features. 

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