Looking for Better Fuel Efficiency?
Just because we want a new car every year doesn't mean upgrading makes sense or is worthwhile. If you're looking for lower emissions or improved safety features, then consider trading your car in for a newer and better model. On the other hand, if your car is paid off and reliable, then it's best to wait. Here are 10 reasons you should upgrade your car and 10 why you shouldn't.
1. Better Safety Features
Modern cars have loads of safety features like automatic emergency braking and lane-keeping assist. If your car lacks any advanced safety features, you should consider upgrading immediately.
2. Improved Fuel Efficiency
You don't want to have to pay more at the pump, so if you're car is not fuel-efficient, then you should look to upgrade to a hybrid or electric model. The savings on gas will offset the higher upfront investment. Plus, you might qualify for a tax credit or incentive depending on where you live.
3. Reliability
Older or used cars need repairs and maintenance more frequently. Upgrading to a newer and better car can deliver peace of mind that your current car won't break down on the highway on your way to work. Upgrading to a new car will also give you new manufacturer warranties.
4. Lower Maintenance Costs
New cars are expensive, but there is some financial upside. If you upgrade to a newer model, you can save on the maintenance costs that you're pouring into your current and older car. The reality is that as cars age, their systems and components wear out and are expensive to fix.
5. Modern Technologies
Car technology advances fast. Even if your car is only two years old, its infotainment system and Android Auto or Apple CarPlay functions could be outdated. Upgrading to a new car can improve your convenience and enjoyment.
6. Enhanced Comfort
Your car might be comfortable, but a newer model could still blow it out of the water. Upgrading can give you access to better seating, climate control, and a quieter cabin. Imagine long drives that are less tiring and more invigorating. Not to mention, your daily commutes will be far more pleasant.
7. Higher Resale Value
If you hold onto your car for too long, you will decrease its resale value. Instead of undermining your profits, why not upgrade today while your car still holds some value on the used car market? The money you'll make by selling your current car can be invested in buying or leasing a new one.
8. Better Financing Options
Many dealerships offer attractive financing or lease options on newer models. Also, interest rates are typically lower for new cars versus older models. Upgrading can be financially appealing if the rates and terms are favorable, and you're open to negotiating.
9. Insurance Benefits
Insurance carriers may provide discounts for newer cars with specific safety features. The premium might be higher, but the savings in addition to driving a new car make it worthwhile.
10. More Cargo Space
If your life has changed since you got your last car, then you might need additional storage space. If you now have a kid or two, or recently took up skiing, then a new car with ample cargo space is the only option.
1. Financial Strain
While upgrading might involve favorable financial terms, it is still expensive. You will most likely have higher monthly payments, a higher insurance premium, and that's before you pay for upgrades. If your current car is paid off and reliable, then waiting to upgrade is a smart idea.
2. Depreciation
Everyone knows that new cars lose some value almost immediately, like almost 20% in the first year. That makes a new car not the best short- or long-term investment.
3. Your Car Runs Well
If your car is safe, affordable, reliable, and easy to maintain, then why even bother upgrading? Upgrading just for the sake of it is pointless and could be costly. Instead, stick it out and be happy with what you have.
4. Registration Fees
Some states force you to pay a higher registration fee for new vehicles. If you live in one of these states and are trying to conserve money, then upgrading should be delayed.
5. Sentimental Value
We love our cars. They contain years' worth of memories and moments. When we upgrade them, we are relinquishing the attachment we have to them. If you're not up for that, then hold onto your precious car until you are ready to move on.
6. Minimal Use
A new car won't improve your life that much if you don't drive that often. If you're daily use of your car is minimal, then why not invest the money in something that will improve your everyday life?
7. Repair vs. Replace
Even a costly repair can be more cost-effective than buying a new car. If that's the situation you're in, then consider paying for repairs and maintenance rather than getting a new car.
8. Hidden Ownership Costs
Beyond the sticker price, new cars come with a bunch of other costs. There are the dealer fees and warranties, to name a few. Don't underestimate the cost of buying or leasing a new car, or you will be unpleasantly surprised when you show up at the dealership.
9. Freedom From Debt
If you own your car outright, you should enjoy some of the financial freedom that comes from not having to make monthly car payments. You should keep your car and use that extra cash flow to travel or upgrade your home.
Evgeny Tchebotarev on Unsplash
10. Buying is Stressful
Not upgrading your car means not having to deal with a pushy salesperson, poring over tons of paperwork, or worrying about scratching a beautiful paint job.
