Whether your car is new or used, the day will inevitably come when you have to replace it. Since cars are very rarely cheap, for the sake of financial planning, you must know, how often should you buy a new car?
Buying a new car every 10 years is optimal. By taking extra care of your car’s condition, you could even squeeze a few more years than that.
Ahead, we’ll have lots of useful information that will help you determine when it’s time for a new car, so keep reading!
How Often Should You Buy a New Car?
You were out one-day running errands when you drive by your local car lot and see it. It’s the most beautiful vehicle you’ve ever laid eyes on, and the price isn’t out of your range either. Should you buy it?
There are two schools of thought here, and that explains why there’s no one correct answer for how often you should buy a new car.
Some people don’t hold onto cars long. They want to show off and always have the latest vehicle just like they need the new iPhone as soon as it drops. They’ll replace their car every year or two, maybe every three years tops.
These people are more interested in vanity, but they do have a point. Cars depreciate over time, which means their value will never be better than it is when the vehicle is new. Although car depreciation tends to bottom out at 10 years, that’s a long time to hold onto a car that’s losing its value increasingly fast.
Cars also become more expensive to maintain as they get older. Their parts are discontinued, making them harder to come by and costlier. You might also have to increase the rate of repairs, which puts a hurting on your wallet.
Yet the cost of a car is something to consider too. As we’ve talked about on the blog, the average car in 2021 is $40,000. New car prices will only continue to increase as history has proven. For example’s sake though, let’s say that car prices will remain at an average of $40,000 every year going forward.
The following chart shows the Depreciation per year and the Running Costs per year.
Years 1, 2, and 3 are covered under the 3 Year Warranty or 36,000 miles.
|Cost of Car||Depreciation / |
Major Job Costs
|$41,212||Year 1||Year 2||Year 3||Year 4||Year 5|
|$5,613 / $0||+$2,580 / $0||+$2,390 / $0||$1,154 / $674||+$2,790 / $709|
|Total Cost||$5,613||$2,580||$ 2,390||$1,828||$3,499|
|Cost of Car||Depreciation / |
Major Job Costs
|Year 6||Year 7||Year 8||Year 9||Year 10|
|$41,212||$2,098 / $278||+$1,615 / $561||+$3,656 / $ 1,426||$ 1,702 / $703||+$1,592 / $770|
The costs related from year 4 onwards are specific jobs that may need to be done to your Silverado, such as U Joint Replacement, Fuel Pump Replacement, Power Steering Pump Replacement, Engine Mount Replacement.
The Warranty can be extended to 5 Years or 100,000 miles.
If you are risk-averse then you should change your car when the warranty runs out. You are then only losing the depreciation value. You can opt to have an extended warranty which will add an additional 2 years (or 100,000 miles – whichever comes first) to your car.
|Cost of Car||Value after 10 Years||Repairs after 10 Years|
3 Ways to Tell It’s Time for a New Car
If you’re someone who doesn’t dump your car every other year to keep up with the Joneses, how will you know when it’s time to trade it in or sell it? Keep your eyes peeled for the following signs.
1 It’s Always Breaking Down
Every time you climb into the driver’s seat of your car, you say a little prayer that it will start this time. Then, as you’re driving, you say another prayer that your vehicle won’t break down on the side of the freeway.
Of course, sooner or later, your car does fail to turn on, or the brakes don’t want to work, or a whole litany of issues arises. Frequent problems with an old car are dangerous and expensive.
Once the cost of repairs for the vehicle is even half the value of the car when you bought it, it’s too much. Your car has become a financial black hole, and it will only get worse with time.
Before you know it, you’ll have spent so much money that you could have gotten a new car several times over.
2 Your Car Has Basic Tech or None at All
You sit in your friend’s new car, and you marvel at all the tech in there. They have a backup camera built into the dashboard while your dashboard has a cassette tape slot.
It’s not just that new tech is cool, but it’s safe. Whether it’s obstacle detection, blind spot intervention, automatic emergency braking, or adaptive headlights, when your car is from several decades back, it doesn’t feel as safe to drive.
3 Your Odometer Displays a Ridiculous Number
The lifespan of a car is not always 12 years. If you hit 200,000 miles first, then it’s time to start visiting car showrooms. Your car is beyond its useful lifespan, and from here on out, it could start having problems.
Is There a Best Time to Buy a New Car?
You’ve decided that it’s time for a new car. Although it’s hard to say goodbye to your current one, it’s for the best. Car experts agree that there are certain times of year that are better than others for shopping for a new car. You don’t necessarily have to buy during these times, but if you do, you might be able to shave off some of the costs of your new car!
Here’s when you should visit your closest car showroom.
During a Finance Deal or Rebate Offer
Keep your ears pricked when you hear car commercials on television. Those times of the year when the dealership runs a finance deal or rebate offers are good times to shop. You could get a lease offer, a financing deal, or even cash back, saving you hundreds to thousands of dollars.
The reason that cars are featured in a finance deal is usually that they undersold. That doesn’t mean the car is bad, per se, just that it wasn’t what the manufacturer expected sales-wise.
At the End of the Year
You won’t have the post-Christmas blues if you buy your new car between New Year’s Eve and New Year’s Day. This time of year, there are typically many year-end sales going on, so you might be able to get a better lease or buying deals than you would once January arrives.
Just don’t be surprised to see the car dealership packed as lots of other people have the same idea as you. If you already have your loan pre-approval, you’re well ahead of the game.
During Specific Months
May, October, November, and December are the four months of the year in which buying a car can be the most fruitful for shoppers.
May is Memorial Day, which is the first sales holiday after a lull. October is when some new cars appear in showrooms, so car salespeople get itchy to sell the prior year’s stock.
November is Black Friday, which is far less chaotic at a car lot than your shopping mall, we promise. December, as we mentioned, is when the year-end deals occur.
Most people save their car shopping until the weekend when they have the day off. This way, they can pore over cars for hours without any time constraints.
By walking into the dealership on a Monday, it’s usually a ghost town. With you and few other customers there, you can ask questions about the car, take a long test drive, and really inspect it. You’ll feel confident in your buying decision.
How often you buy a car depends on if you care more about vanity or if you want a dependable vehicle that can last for at least a decade. You should let your wallet be your guide when determining if it’s time to replace your car. Consider also how well the car runs and if its safety features are current.
We hope this information helps you plan your next car purchase, be that tomorrow or several years from now!
Before buying any vehicle, it’s always worth investing a few dollars to check the VIN number against the vehicle database. An audit with a company like VinAudit (links to VinAudit) will guard against Mileage fraud, Salvage rebuilds, Title washing, Vin cloning, and a ton of other uglies.
Check the Edmunds.com link below to see what Hot deals are on offer right now, but be warned, I sometimes lose an hour or more to all the eye candy on offer.Car Research and Pricing at Edmunds
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