Your car gets you to work, school, appointments and everywhere in between. But when repair bills start adding up—or your monthly payment starts feeling too high—you may start wondering whether it's time to make a change.
Before making a decision, it helps to look at the whole picture.
When Does It Make Sense to Repair Your Car?
A repair bill isn't necessarily a reason to start shopping for another vehicle.
Consider the age and overall condition of your car, how much you still owe and whether the repair is likely to keep the vehicle running reliably for several more years.
A $1,000 repair can feel expensive, but replacing the vehicle could mean taking on years of monthly payments.
Before deciding, ask yourself: If I make this repair, am I likely to have a dependable vehicle afterward?
If the answer is yes, repairing may still make financial sense.
When Might It Be Time to Replace It?
Frequent repairs can change the equation.
If your vehicle is becoming unreliable, repair costs continue to increase or you no longer feel comfortable depending on it for everyday transportation, it may be time to consider replacing it.
Before heading to the dealership, determine how much vehicle you can comfortably afford—not simply how much you can get approved to borrow.
Remember to consider the entire cost of owning the vehicle, including the monthly payment, insurance, fuel, maintenance and registration.
What If You Like Your Car but Not Your Loan?
There's another option people sometimes overlook: refinancing.
If your credit has improved since you purchased your vehicle, or your original auto loan came with a higher interest rate, refinancing could potentially help you secure a better rate or lower your monthly payment.
It doesn't always make sense, though.
Consider your remaining loan balance, current interest rate, remaining term and the terms of the new loan. Extending a loan simply to reduce the monthly payment could mean paying more interest over time.
That's why it's important to look beyond the payment and compare the total cost.
Start With the Numbers—Not the Car
It's easy to fall in love with a vehicle before figuring out whether it fits comfortably into your budget.
Consider doing things in the opposite order.
Review your monthly budget, determine a comfortable payment range and explore financing before you start seriously shopping.
Getting pre-approved for an auto loan can give you a better understanding of what you can afford and allow you to shop knowing your financing options ahead of time.
We're Here to Talk Through Your Options
You don't have to wait until you're sitting at a dealership to ask questions about auto financing.
At Community Focus Federal Credit Union, we're happy to talk with you about where you are today.
Maybe you're wondering whether refinancing your current vehicle makes sense. Maybe you're preparing to buy your first car. Or perhaps your current vehicle has reached the point where you're ready for something different.
We'll help you look at your options so you can make the decision that works for your situation.
Because the goal isn't simply to get you into another car.
It's to help you make a financial decision you'll still feel good about after you drive it home.