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There are a variety of factors to consider when deciding if it is the right time for you to invest in your next vehicle. Evaluate the status of your current vehicle, weigh the pros and cons of keeping it, and determine if investing in another vehicle makes sense.

Here is a breakdown on how you can decide if it is time to invest in another vehicle.

Current vehicle status

Assessing your current vehicle status means considering its age, mileage, cosmetics, and function.

Age + Mileage

Two factors that could persuade you to getting another vehicle are your vehicle’s age and how many miles are on it. Older vehicles with a lot of mileage usually face a lot of repairs and do not perform well. If you are facing the decision of investing more money to make repairs, first decide if it is worth it. It might be a good idea to calculate your vehicle’s value by using a resource like Kelley Blue Book. You will then be able to compare your vehicle’s value to the cost of repairs. If repair costs are similar or outweigh your vehicle’s total value, it is probably time for your next vehicle.

For example, you might see an evaluation like the following. For a 2009 Dodge Avenger SXT with 74,000 miles, you could expect the sedan’s value to be around $2,500. If you are looking at repairs for a significant portion of that amount, it might be a good idea to trade in or sell for another vehicle. Because of the vehicle’s age and mileage, you’re also likely to have upcoming repairs soon.

Although the age of your vehicle and the accumulated mileage are important factors for deciding whether to invest in another vehicle, they shouldn’t be the sole determinants. If your vehicle is functioning great with no major mechanical issues and the condition of the vehicle is good, the mileage or year shouldn’t be deal breakers for you.

Cosmetic condition

Assess the internal and external condition of your vehicle. Would you consider it fair, good, very good, or excellent? To get your vehicle’s best possible value for either a sale or trade-in, clean it. Take the perspective of the party purchasing your vehicle and decide if you could increase its value in either of these areas.

The lowest degree of effort would be washing your vehicle and vacuuming it out. However, this is just seen as a courtesy during the handover phase from one party to another. It most likely won’t increase your odds of gaining much more money toward your next vehicle.

Here is an easy to-do checklist to increase your vehicle’s value:

• Wash the vehicle body and tires but be especially careful with the rims if they are chrome. Use a different brush on the body than on the tires so that you don’t scratch the paint.
• Clear out the entire vehicle so that you can vacuum and wipe down everything. This includes not only the dashboard and doors, but also every little nook and cranny. Yes, dealerships will look over every inch to calculate how much they might need to invest in detailing.
• If you have the ability and its applicable, shampoo the carpet. If you have a power washer, pull out your floormats and spray them down. This will remove additional grease and dirt.
• Finish up the interior by spraying and wiping down all the interior windows. This includes the front and back windshields. If you used a detailing product to wipe down your car, and perhaps a finisher afterwards, wiping down the windows will clean up any excess product.
• The last step you could do would be waxing the exterior. If your car doesn’t show any significant peeling of the clear coat, you could buff the vehicle before waxing (lights as well). Before you remove the wax, consider adding tire shine. As with the interior, your last step to the exterior would be wiping down the windows.

Doing the above checklist could easily translate to earning a little more for your vehicle.

Vehicle function and recalls

The quality of your make and model is also a consideration. vehicles have recalls, or just bad years in general. If you currently possess a vehicle that falls in either of these cases, it might not be a bad idea to get ahead of the curve and invest in another reliable option before your current vehicle becomes unreliable.

Weighing the combination of the above vehicle characteristics as well as its operating ability should provide clear indicators on whether your next vehicle is soon approaching. Remember, resources such as Kelley Blue Book can assist you in calculating your vehicle’s anticipated value. Moreover, it’s a realistic evaluator and validation for you to show dealerships when you decide to sell or trade in your vehicle. Print out your estimate so that you can prove that you have done your homework.

Evaluate the investment

If you can identify the pros and cons of keeping your vehicle, you should also be able to forecast the best course of action. Major repairs versus the overall value are a great indicator, but certainly not the only one. Perhaps your current vehicle doesn’t provide you with the amenities you now need.

Additional amenities

Look into the possibility of purchasing another vehicle that provides you more amenities. An example could be replacing a sedan with a truck. Maybe you’re raising a family and you need a 5 or 6 passenger vehicle over a 2-seater. It’s safe to say many people invest in their next vehicle so that they can use it for more functional purposes. Consider what functions you need and could gain by switching up the model. If you do intend to switch over to a significantly larger model size, you should anticipate more expensive costs, particularly in fuel (larger engines use more fuel, and more expensive premium/diesel fuel).

Research your options

To buy the best vehicle for you, you should invest time to research your options. It might require looking into multiple makes and models for the type of vehicle you need. Once you narrow your list, you should drive each one. Get a feel for how it rides. Lastly, research multiple dealerships. You might find a lower price or deal at one dealership over another.

Time of Year

The time of year should also be an enormous factor on your radar when thinking about getting another vehicle. Whether you use a trade-in or not, it’s recommended you look for deals. Are you aware of the numerous quotas that dealerships and their salesmen face during the year? The most well-known is the model-year turnover of vehicles. This is especially the case for dealerships selling new vehicles that must make room for the incoming year models. But salesmen have other quotas to hit as well. Some dealerships require a weekly or monthly quota for their salesmen. So, when you go to buy in another vehicle, aim to do so at the end of a month or even the year. This will improve your chances of getting a deal.

Financial elements

The first of three financial aspects you should really consider when investing in your next vehicle is the money down you are able to place towards your next purchase. Your current vehicle status can significantly influence its trade value. The greater its value, the more you have towards the next vehicle. Let’s say you’re looking into a new sedan listed at $25,000. If you have $10,000 worth of cash and a trade-in value, your next purchase would be revalued at $15,000 for a loan.

The second consideration would be whether you would need an auto loan. The variables to identify would be the cost of the vehicle, the term of the loan (which typically is between 36 and 84 months), sometimes the money down you have available, and the annual percentage rate (APR). Keep in mind that your credit score and money down can significantly impact your loan details. If you have an idea about the cost of your next vehicle, use our auto loan calculator to see what your loan details could be at purchase.

The last financial consideration would be the insurance associated to your next vehicle. Speak to an insurance agent before you make your purchase so that you have an idea on what kind of payments you could be looking at each month. Your payments will be based on numerous factors such as the age of the vehicle, mileage, and the model.

Conclusion

If you are looking to invest in another vehicle, consider the status of your current vehicle and be sure to research your options moving forward. Identify what you really need and decide if the investment makes sense. However, a framework guide is as follows. If your vehicle’s mileage is reaching 100,000 miles and/or is about 10 years of age, you should probably consider getting another vehicle (to be on the safe side). Financially speaking, plan as if you are on a budget. Consider the money you have down, the specifics of your anticipated loan, and the additional contributing costs such as insurance. All of these will assist you in your decision.