A new report in Time Magazine suggests that the best time to finance a car is right now. In the US, financing a car has never been so affordable, but that might change if you wait too long. According to the article, the cost of borrowing will skyrocket by the same time next year.
The Cost of Owning an Older Car
Based on the same article, the age of the average car on the road currently is 11 years old. While many cars can last that long and remain in good shape, there is a high cost associated with keeping an older car. How can you figure out if you should keep your older car or buy a new one? The general rule of thumb is to figure out how much that car would cost new, tally up the monthly payments for the newer model, and then compare those payments to how much you are spending currently on car repairs.
If your car repairs are costing more than the price of a monthly payment, it might be time to buy a new car. While all cars (old, new, and used) will require some kind of repair occasionally, older cars tend to be in the shop more often. If you avoid repairs on an older car altogether, the costs could still add up.
Once those minor repairs turn into major problems, you’ve got, well, a major problem. In short, holding off on making repairs doesn’t make sense, so figuring out a monthly or annual cost compared to the cost of a new car is the way to go (or used car that’s in better shape, like a pre-owned and certified vehicle).
The Current Cost of Financing
Right now, the average cost of financing a new vehicle for someone with good credit is around 3 percent. For used cars, that cost rises to just over 3 percent. Those are pretty low rates, but they are going to rise over the next twelve months. If you want to purchase a new or used car, Time suggests going through the dealership directly to get the best financing rates in addition to improving your credit well before you purchase a car, since this could save you a ton of money even with great rates.
The decision to buy a new car or a used car is a tough one for many people to make, but it pays to consider the fact that new cars are always going to be much more expensive. Additionally, there’s an old saying that you lose some value from a new car the minute that you drive the car off of the lot (this is debatable, but the logic remains). The other thing that you have to be really careful about if you have an older car or even if you buy a new or used one is making sure that you find a trustworthy garage.
Getting Hoodwinked At A Garage
When it comes to finding an auto shop in Fort Collins, we’d love to tell you that you’ll never get hoodwinked. But, the truth is that you have to find a shop that has a solid reputation. We’re happy to report that Fort Collins Foreign Car Service has been in business for many years, and over that time we’ve built up a solid customer base of happy people. Without providing top service to all of our clients, we wouldn’t have the business that we do today.
If you are looking to buy a new or used car, now’s the time to finance, but regardless of the car that you buy, we are here to make sure that your vehicle is safe to drive at all times. Bring your car or truck into us, and we’ll make it the best that it can be. Auto repair in Fort Collins doesn’t get any easier than Fort Collins Foreign Car Service, and that’s car service in Fort Collins that you can trust.
What does financing a car look like in your area? Do you think that an older or newer car is a better buy? Let us know by joining the conversation on Facebook!