As we head into the new year, many vehicle owners will consider trading in their used cars to upgrade for 2023. With the economy uncertain, interest rates on the rise, and the cost of used cars soaring, now might not be the best time to trade in your car. Instead, consider hiring a Toyota service in Charleston, SC company and weighing the benefits of holding onto your used car versus upgrading to a new one!
Car Payments Suck
Sure, making a payment every month seems totally doable – until you start to add up the many different ways your bills are bleeding you dry every month. If you are in a position where your car is only costing you insurance, gas, and some minor maintenance costs, then now might not be the time to saddle yourself with more payments monthly. The allure of not having maintenance or repair costs is enticing, but not when you consider you have a for-sure monthly bill for the next several years.
Used Car Prices are at an All-Time High
One argument that many used car owners are using right now is that they can get close to what they paid for their newer car, and they aren’t wrong. The problem with using that rationale is that your used car is worth more, but so is everyone else’s used car. That means the only way that it might make sense for you to trade in your car is to buy new, but do you really want to drive it off the lot and take the depreciation hit if you don’t have to? If your car is still running well, ride it out – literally!
Invest and Use the Money When the Economy Stabilizes
It isn’t that you need to buy a car now or never. If you want to put yourself into a better economic spot, hold out on buying a new car for a year. If you invest money that you would have used toward monthly payments, in one year’s time, you will have saved enough for a down payment on a new one – or you might just find that your older car is just fine! The longer you don’t trade it in, the more time you have to save up money for when the economy cools.
Hold Out for Innovation
The past several years have come with a lot of changes and things that people didn’t see coming. During the pandemic, there wasn’t innovation going on in boardrooms or car designs. We are so close to self-driving technology being a real convenience for everyone; doesn’t it make sense to wait it out and spend the money on a new car that has all the bells and whistles?
As we head into a new year, many will resolve to cut their monthly costs and save money. If you are considering trading in your used car and reaping the benefit of increased used car prices, take into account that you will either be buying someone else’s used car headaches or taking on a new car payment – neither of which sounds all that great. It might be smarter to bring your car in for Toyota service in Charleston, SC today to discuss how we can make minimal improvements that will have you riding free for at least another year. Contact us to schedule your appointment today!