Buying a New Car or Modifying the Existing One- Which is More Profitable?
Car is an important part of everyone’s life. When someone refers to a car we imagine a picture of a four-wheeled vehicle that is being used for transportation. Nowadays it is not a luxury but rather a necessity for everyone.
It Depends, Based On The Scenarios As Explained Below
A few of the reasons why it is important to invest in a car are- comfortable journeys without wasting time, it is convenient, it comes in handy in the time of emergency, a car offers freedom and flexibility along with safety. To get these benefits one can either buy a new car or modify their existing vehicle, however it depends on a different scenario. Such as-
1. Figure Out the Maintenance Cost
It is important to do the math before investing in any vehicle. Every wheeled carriage has its own maintenance cost and it depends upon the benefits you are getting out of it. In the case of an existing car, it takes a certain amount every month for repair considering the mileage and age.
The cost of maintenance is lower when considering a new car compared to the used one. It is very easy to get used cars Frankston, but if the used car is costing you more depreciation then it is wise to go for a new one. When calculating the monthly cost of a car one should include insurance amount, repair cost, fuel cost and registration fees for new cars.
Through surveys, it has been observed that used luxury cars even cost more than new economic cars. On the other hand, if a person is not comfortable paying monthly EMI for a new car it is a wise move to invest in the existing car.
2. Lesser Insurance Cost
The decision of purchasing a new car or investing in the existing one completely depends upon the purpose of the car even for a used car insurance rates are cheaper compared to a new one as the insurance cost reduces with the age of the car.
The premium amount of insurance is decided as per the depreciation rate of the car during the purchase. And if it is well maintained then its depreciation percentage will be below then a new car. And it is one of the prime benefits of using an existing car or investing in it.
3. Calculate the Market Value of The Car
The decision of whether to repair the old car and make it run longer or to sell it and purchase a new one depends on the existing market value of the car. It is wiser to repair the car if you can do it or a friend of yours can help you with the servicing at a reasonable cost or if the repair value is half of the car’s market value.
The repair cost is sometimes even lower than the EMI of a single month if the car is well-maintained. In such a scenario you can invest in that car, and you might even get an upgrade. But in case the car requires repairs repeatedly, which is not satisfying for you then it’s time to google “sell my car” instant quote to get a new one, as there is always warranty coverage for repairs in case of new cars.
4. New feature and Technologies comes with New Cars
Other than lower maintenance costs, advanced technology is also a great feature for any new car. In this digital era, every technology that comes out today becomes ancient tomorrow.
Therefore, if you want new technology and features in your car you should probably buy a new car along with new equipment and accessories. However, there is always a way to upgrade your old car but that might cost you some extra pennies.
5. Consider Your Personal & Professional Requirements.
As cars have a great impact on everyone’s life it is important to consider both professional and personal factors before purchasing a car to get a piece of mind. For example, consider for a working professional having a new car might maintain a certain level of approach or for any salesperson that having a new car might boost sales.
Therefore it is sensible and logical to go for the option that fulfills all your requirements and also gives you peace of mind in terms of value for money and technology.
