Most common questions used to investigate
Are you upside down on your current car loan?
Is your car too old to drive?
Is the car interest rate low?
Have you considered the hidden costs of a new car?
Can you afford to buy a new car and make monthly payments comfortably?
Common conclusions
When people are upside down with their loan, it means that the value of their car has depreciated and the payments they are making towards the loan far exceeds the value of the car itself. This is usually the case when you opt for 60-month car loans. When you try to sell your car in such circumstances, you'll take a loss. So, instead of selling your old car and buying a new one, stick with your old car and drive it for a few more years. In general, experts believe that driving a car for eight years or more will help you get good value for it.
Go for the new car.
Evaluate what exactly do you mean when you say “old”? It is said that most cars are good on the road for 11 years and can run for 200,000 miles with good care. So, now decide how old is your car against this statistic. If you still think your car is old, go for a new one.
Use your current car.
Go for a new car! Make the most of the low-interest rates to buy the car that you've always wanted. A quick tip here. Never evaluate your choice based on the monthly payment, rather look at the interest rate for your credit score. The obvious advantage is when you take an auto loan at a low rate, the principal and interest payments would be a lot lesser than your car's worth and at the end of the loan period, you can sell the car at a profit.
Buy a new car if you can afford one from your savings. Otherwise, wait for the interest rates to go down to take an auto loan for a new car.
Well, many hidden costs come with owning a car with the op expense being your insurance premium. In general, your insurance, gas, repair, and any other expense you incur towards running and maintaining your car is the total cost of car ownership. Unfortunately, these costs are not considered by most people until they have to shell out money for these payments. The trickiest of them all is the insurance payment as the premium will be much higher for new cars when compared to old cars.
Go for it and enjoy your new car!
Stick with your old car. During this time, save some money for a down payment, so you can reduce the monthly car loan payments.
References
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