You love your car, but it just might be time to get a new one. Read on to learn about the telltale signs that your life is in need of a car upgrade!
No matter how much you love your trusty old car, there comes a time when you will need to upgrade, but it’s not always clear when you should be looking for a new car. Maybe you need a bigger ride, maybe the costs of maintaining your current vehicle are adding up or maybe your vehicle is past the sell-by date. Keep reading to learn the five tell-tale signs it’s time to get a new car.
When To Get A New Car
A few factors that play into the timing of when to get a new car include the status of your warranty, how much you have left to pay on your car, it’s current value , the need to take advantage of new technology, and more.
1. Your Car’s Warranty Is Up
Cars these days tend to last for a while with proper maintenance. So, the hope is, there won’t be much of a need to take advantage of your car’s warranty. But there are some cases where you have a safety net and will want to change your car before your coverage is up.
Typically, car manufacturers offer a three-year and 62-thousand mile warranty. There are others that go up to five years with unlimited miles. You’ll want to upgrade your car when there is still some warranty on it, preferably about a year.
This will increase your car’s market value which will make it easier for you to sell or trade-in your car.
2. Remaining loan payments
You might think that you can upgrade your car while still making loan payments, but this isn’t always true.
The amount that you need to pay off your car loan will depend on the terms of your loan. You will also need to pay any outstanding money, termination fees, and the residual payment. The termination process and fees depend on your lender, so you’ll want to consult with your loan provider before you make any moves.
At this point, you should be able to get a good idea of your car’s worth. You can check out similar models and have the dealership give you a rough estimate of cost.
Once you know the value of your car, then you can decide how much money you will have left over to deposit on a newer car.
3. Your Deposit
You can determine how much money you have for a deposit on your new car by taking the current value of your vehicle and subtracting the payout figure. You want to make sure that you have enough money left over from this sale to put down a sizeable deposit on a new car.
You also want to make sure that you have enough money to cover any loan payout costs before you sell your car. This is a sticking point for many people. You also can talk to your bank and let them know you’re considering upgrading your car. They might be able to give you the best advice on a situation like this.
Your financier might recommend that you transfer your current loan balance and any residual payments to a temporary personal loan or credit card. This way you have some breathing room to sell your car.
You could also refinance your car. This allows you to trade-in your car for a newer model at your dealership. Keeping an eye on your finances and understanding these numbers will help you decide the best time to trade-in or sell your car.
Above all else, you want to make sure you can keep your car’s finance provider in the loop so you’re aware of all possible options.
4. Technology Is Improving Every Year
Back in the day, you could drive your car for five or six years and it would still have all of the same features of a newer model. The styling might change a little bit, and maybe the performance was a little bit better in the newer models, but overall there weren’t any major changes.
Today there are so many rapid advances in technology, that it seems like cars are getting significantly new features every two to three years. In fact, brand new mid-range cars have a lot of features that are similar to a five year old top-of-the-range car you could be driving now.
Ultimately, car technology is advancing so fast that if you hold onto your old car for too long, you could be missing out on new features that would make your ride safer and easier.
5. Your Car Is Losing Value
You know that as soon as your car leaves the dealership, it loses thousands of dollars in value. It’s just how car-ownership works, cars depreciate quickly.
If you plan on driving your car forever, this might not bother you. But if you are someone who likes to upgrade your car regularly, then you will need to pay attention to its current market value.
You just want to make sure that you don’t find yourself stuck in a car with no real market value and then try to upgrade your car. Knowing your car’s value and upgrading it before it loses all its value is key.
Upgrade Your Car Today
Now you know when to get a new car. Are you ready for an upgrade? If your warranty is going to be up soon, your car’s financing is in good standing, you have enough money for a deposit, want to take advantage of new technology and or your car is losing value, you should upgrade your car sooner rather than later.