Should You Keep or Replace Your Car?

Deciding to keep or replace a car

Sometimes when you are making financial decisions, deciding whether or not to pay off and keep your current vehicle or trade it in to get a new one is a tough choice. However, you have a third option if you’re looking to replace your car: leasing. If you’re daunted by the idea of having a high monthly payment and having to pay off a brand-new car, then you might want to consider leasing a car instead.

So when, exactly, should you get rid of an old car? Probably when the cost of keeping it alive and kicking outweighs the benefits of having a paid-off vehicle, or when your car is old enough that you’re considering a newer model with more innovative features and designs. However, a new car might be above your budget.

That’s when leasing becomes a good compromise. When leasing, you don’t have to pay off the full cost of the vehicle, only the cost of the vehicle’s depreciation over the life of the contract. So, for example, if your leased vehicle cost $20,000 at the beginning of a three-year term and $13,000 at the end, then you’ll only have to pay $7,000 altogether. That means a lower down payment and lower monthly payment, too. Of course, you don’t get to keep the vehicle once it’s paid off.

So should you keep your old vehicle, replace your car, or lease? The choice is yours, but we here at Empire Hyundai can help you out no matter what. Just call or stop by today.