Cars are ubiquitous in modern American life, with entire cities planned out for automobile use rather than pedestrians. Despite being such important tools for everyday life, they have become increasingly expensive over the past few years. According to a report from market watchers, the average price for a new light vehicle is now over $40,000, over $2,000 over the price of the same type of vehicle last year. The price of used cars isn’t much better
You may need a vehicle no matter how expensive it is but it’s understandable if you’d rather look for another way to get a car. An alternative method you can employ to get your own car is fixing an old one.
But which is better for you and your wallet?
Pros of Buying New
- Comes with Warranties
When you buy a new, for instance, Subaru you wouldn’t have to worry about replacing Subaru brake parts with pieces from some other vehicle because you couldn’t afford them. A new car comes with warranties that cover such replacements, at least for the first year or so. This means it can be cheaper to maintain them during the period covered by the warranty, provided the damages are included in its coverage.
- Brand-New
A brand-new car doesn’t have all the baggage of buying an old or used car has. You won’t have to worry about the car’s mileage, if it’s been in any accidents in the past year or whether a previous owner stored anything smelly in it. When you buy a brand-new vehicle, all you have to worry about are the payments.
- High Resale Value
If you end up not liking your new vehicle, it’s brand-new condition will ensure that you can find plenty of buyers. Its relatively new condition will also ensure that you can set a high price for your car. This means it will be easier to recoup any losses or expense you incurred buying the vehicle.
Cons of Buying New
- Very Expensive
As wonderful as buying a new car can be, the rising costs can make it such a purchase prohibitively expensive. Aside from costing thousands of dollars, buying a car can come with plenty of additional costs. A car can come with hidden expenses such as parking fees if you don’t have your own garage, and accessories you may need for maintenance. On top of its initial purchase, these expenses can push the price right through the roof.
- Varying ROI
When you buy a car, you better have great reason for doing so. If you only use a car to ferry your kids to and from school or because you don’t want the hassle of a short commute, you may be using your money for the wrong reason. The return of investment for a car depends on you and your earning power. But the more you can make use of your car, the better.
Pros of Fixing an Old Car
- Cost-Effective
Patching up an old car can cost significantly less than buying an entirely new car. If the vehicle is only missing a few crucial pieces or needs cleaning and some repairs, you can drive away with a perfectly serviceable car with only a few thousand dollars worth of expenses.
- It’s Educational
Fixing an old car can teach you a lot about auto repair. If the extent of your automotive repair knowledge is opening the trunk and putting water in the radiator, you may want to take the opportunity to learn how to fix one. This can help you avoid incurring expensive bills whenever your car gets into trouble as you can enact repairs on your own.
- You Can Fix Rare Models
Car restoration can not only give you with a vehicle you can drive around in, but it can also be very lucrative. If you ply your cards right, you may end up fixing rare and expensive models. For example, if you find a broken down 1959 Cadillac, you can be looking at a car worth tens of thousands of dollars to the right buyer.
Cons of Fixing an Old Car
- Can Go Overbudget
Fixing an old car can become a bottomless money pit, depending on the age and the condition of the vehicle. The price of the parts and the repairs needed to make the car worthy of the road or a collection can be worth much more than you can readily pay up. If the car is in bad enough condition, you may end up paying for repairs and waiting for it to get fixed up years on end.
- Unreliable
No matter how much you fix up an old car, it will be almost impossible to make it run as good as new. Your repairs may not take, parts you thought were good enough to function can break apart and it may not even run despite the best of your efforts. This can make all your hard work seem meaningless and your expenses for nothing.
Whether you buy a new car depends entirely on your individual circumstance. If you can find an old car for the right price and in a workable condition, consider fixing it up instead. If you have the money to do so, a new car may just be what you need. Use your best judgment and you can find the automobile of your dreams.
