Is your vehicle starting to give out on you?
As much as you love that faithful Buick, cars are typically past their prime after about 100k miles. Simple maintenance here and there may seem like pocket change. But over time, your well-loved vehicle may cost you more money in repairs than a new model.
Some prefer trading up cars every three to five years. Others crave that new-car smell. And others, don’t want to deal with the process altogether. Wherever you fall on the spectrum, the most important aspect of car shopping is timing.
In our blog today, we’ll help you assess whether it’s time for a new car and share three WEOKIE Federal Credit Union services that can help you.
Evaluating the Cost of Wear and Tear
Even if you’ve taken good care of your car, some repairs are just necessary — due to wear or time itself. Hoses crack, metals warp and electrical parts malfunction, and eventually they’ll need to be replaced.
Maybe your car recently broke down and you’re faced with a high repair bill. This isn’t the first time it’s happened. You’re tired of pouring money into it. A new car would be nice, but is the timing right? Are you better off fixing your current vehicle or should you invest that money towards a new one?
While there isn’t a clear-cut answer, our team can provide suggestions for both scenarios — allowing you to make the best decision for your situation.
Arguments for Fixing
Considering biting the cost of repairs? If your car’s fairly new, it makes sense to make the repairs. But, if your car is past its prime, it could be time to place your investment in a newer vehicle. Before you sign the dotted line, ask yourself these questions:
- How old is your car?
- How much are you paying in repairs?
- Is the cost less than half your car’s market value?
- How many years of life will the repair add to your car?
Arguments for Buying
It’s almost always less expensive to repair a car than purchasing a new one. But keep in mind, a new car typically loses an estimated 22 percent of its value in the first year. Weigh the cost of maintenance and repairs with your car’s estimated market value. If age has tipped the scale, here are a few scenarios where buying a new car is maybe the wisest option.
- The cost of maintenance and repairs is higher than the car’s value.
- You’re tired of the back-and-forth to the repair shop.
- You’re looking for something with updated safety features.
So, Where Do Credit Unions Come In?
Now, it’s time to get to the good part.
Whether you choose to keep your car or purchase a new one, there are three credit union services to help you get the most bang for your buck.
If you choose to keep your existing car, we recommend:
- Exchanging your pricey dealership rate for an auto loan from your credit union with better terms.
- Refinancing your car, adjusting the term and payment to suit your financial situation.
If you choose to invest in a new car, we recommend:
- Taking advantage of the credit union’s lower car loan rates.
- If you’ve financed through a dealer, transfer it to WEOKIE for a better deal.
- Consolidating credit card and car loan rates into one easy monthly payment.
- Exploring member perks like checking rewards, bundling and more.
The Dealership Pitfall to Watch For
Be careful of “too good to be true” deals at the dealership. Salespeople earn commission on sales and often focus your attention on a monthly payment figure. From there, they can lump in the price, trade-in value, financing and leasing terms together — making it appear like an attractive deal in one area, but not the other.
Instead, negotiate one thing at a time. Settle on the vehicle’s price first, discuss a trade-in and give WEOKIE Federal Credit Union a call as soon as possible.
Everyone seems to have advice on when to get a new car. Three to five years, every 100k miles, the list goes on. Knowing your needs, your car history and financial situation allows you to make the decision better than anyone else.
It’s always good to be proactive. It’s better to explore your options now versus making a hasty decision during a breakdown on the side of the road. For more information about auto refinancing, contact our WEOKIE team at (405) 235-3030 or firstname.lastname@example.org and we’ll discuss your specific needs.
Ready to Hit the Open Road?
Whether you’re keeping your current car or purchasing a new one, auto refinancing is the way to go. Click below to download our free ebook to learn the three best times to finance a car and five stories from people like you!