"Should I fix the old car or buy a new one?"
It may be tempting to buy a new car instead of spending more money repairing your old car. However, what would it cost  to keep that old car running for a few more years? That may be a hard question to answer. So lets say that you budget 2,000 dollars each year for the next three years to spend for these repairs. Using these dollars as a start point, lets see how this would figure out for one example.

Now we need the price of a new vehicle and  a leased vehicle. Just how much is that new car really going to cost you? Below is a chart showing the difference between spending money maintaining your current car versus buying or leasing a new vehicle.

 

Total
Expenses
over a

3 Year Period

Keep 1996
Accord

Purchase
2005
Accord

Lease 2005
Accord

Down Payment 0 $1,000 $1,000
Sales Tax 0 $1,125 $630
License Plates $350 $1,050 $1,050
Insurance $1,776 $2,750 $2,750
Maintenance
and Repairs
$6,000 $1,000 $1,000
Interest
Expense
0 $2,750 0
Lease
Payment
0 0 $9,072
Depreciation $2,250 $4,575 0
Total
Cash
$10,376 $24,626 $15,502
Less Equity
 at End
$3,500 $5,250 0
Net
  3  Year
Expense
$6,876 $19,376 $15,502

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Last modified: November 23, 2015 Copyrightę 2015, Nick's Auto Service, Inc. All rights reserved.