When you're considering buying a new car, many factors go into the decision. Can you afford the payment? Do you need a different type of car to fit your lifestyle? Has the cost of owning your current car become more than it’s worth?
Reasons to keep your current car
There are many financial reasons to hang on to your car as long as possible:
- Maintenance costs for an older car will almost always be lower than a new car payment
- Older cars generally have lower insurance costs
- New cars realize most of their depreciation in the first five years of ownership – so a new car will lose value faster than an older model
Reasons to get a new car
Whether you buy a brand new car, or one that's just new to you, the reasons to trade in can be compelling too:
- New cars are generally more fuel-efficient and will cost you less at the pump
- There's a much lower risk of mechanical problems, and if they happen, they're usually covered under the warranty
- Nothing compares to that new car smell
Ultimately, it's your decision to make. If you decide to keep your current car and still have time to pay it off, you may want to refinance your loan to get a better rate.
Already refinanced with Nationwide Bank®?
If you've already refinanced your car with us, send your story to email@example.com and we may feature you in a future Bank Note.