like any other asset, the value of cars goes down over the years.
There will come a time when cars must retire due to old age and wear and tear, which really affect performance and resale value. This is not always bad news, because it means you have a chance to check out a new ride.
Here are 3 things to consider when you are thinking about letting go of your old faithful automobile and replacing it with a newer model.
1. Maintenance and Repair
Do you spend more money now on your car's repairs? Or do most of its parts need replacing? If it is no longer practical to keep on spending money just to keep your car in running, then this is already an indicator that you need to replace it. Although this will mean a bigger expense on your part, it will mean savings in the long run.
2. Car Lifespan
On the average, an SUV or similar vehicle will need serious maintenance after five years.
There are three distinct points, reflected in the car's odometer, which signify when service is needed: (1) 48,000 to 64,000 km; (2) 96,000 to 112,000 km; and (3) 160,000 km and above.
When your car reaches the third point and beyond and you are not looking forward to investing on maintenance and repair, then it is time to consider selling it.
3. Fuel Cost
Although how you drive also affects fuel consumption, efficiency is very much related to the age of your vehicle. The engine may not be working as efficiently as when it wa s new due to its old age. In turn, the overall performance and efficiency of the car are also affected. But the good news is, technological advancements have led to fuel efficient cars that you can replace your old car with.