Buying a new car might sound good in theory, but these days, a new car purchase is out of reach for many Americans, according to a recent CNBC report. With the average cost of a new vehicle higher than ever at $30,500, spending a fraction of that money on making your current vehicle last longer makes good financial sense.
Hanging on to your current vehicle allows you to redirect money you would spend on a new car to pay off credit card debt, college loans and other bills, beef up savings or even take a road trip vacation; simply budgeting the equivalent of just one new car payment, you could cover an entire year’s worth of basic maintenance.
Even if serious engine trouble strikes, keeping your current vehicle is the sensible economic decision. For the cost of an average down payment on a new car or truck, a vehicle can be repowered with a remanufactured/rebuilt engine and gain years of reliable service without monthly car payments and higher insurance rates.
