If your car is driving and not causing any major problem, then there is really no reason to sell it. With regular maintenance and care and a sensible driving style, a car can drive many hundreds of thousands of kilometers. It doesn’t matter which model or make of car it is.
Your car is paid for
The purchase of a new car costs money and not just a little. That’s why a lot of people take funding for this and maybe you did the same with your car back then. But since it has now been paid off or you are about to do so, this fact can be a great advantage for you. Why? Once the financing has ended, you have another 200, 300 or 500 euros more per month at your disposal, which you had to raise beforehand for the financing.
Another point that is often not taken into account when buying a new car is the immense loss of value in the first few years. Depending on the car brand, the loss in value can be as much as 50% within 5 years or even more.
My tip: put aside 50 to 100 euros of the savings every month and pay them into a savings account. You can use the money later for repairs. After just 12 months there are 600 to 1200 euros in the account. After 5 years it would be 3,000 to 6,000 euros.
A repair is cheaper than a new purchase
Of course, various signs of wear and tear become noticeable in an older car over time and the parts must be replaced. However, repair can still be the cheaper alternative.
Let’s assume, for example, that the brakes (brake pads and discs) have to be completely changed on your car and the change in the workshop costs 500 euros. So it makes a difference whether I pay the 500 euros one-time for the repair or finance a new car at a monthly rate of 200 euros, which then costs me 2,400 euros a year.
So it’s always worth thinking about what the one-off repair costs will be, how much peace and quiet will I have for years, or what a new car will cost me every year.
Cheaper insurance and taxes are possible
A new car usually always costs more insurance than a used car. Several euros can come together in a year. The vehicle tax must also be taken into account. All cars that were registered before September 1st, 2018 were still subject to the old test cycle.
New registrations are now subject to the WLTP test, which can make the tax more expensive.
You are doing something good for the environment
The longer you drive your car, the better it is for the environment too. Imagine buying a new car every 5 years. Certainly the new car may consume 1 liter less fuel on paper, but again a lot of raw materials and energy are required for production, which in no way justifies the lower consumption.
When is the old car no longer worthwhile?
When a repair is really no longer worthwhile and subsequent repairs can be identified in the next few months. The residual value of your car can be used as a good guide. For example, if this is 1500 euros and you need a replacement engine, the purchase and installation of which costs 2000 euros and a new transmission for 800 euros is necessary a little later, then it is no longer worth it.