Fix or sell it? Consider two car care tips
At what point is buying a new car a better use of your money than paying to repair your current vehicle? Ask yourself these two key questions to determine the best answer for your situation.
How well have you maintained your car? No one can escape the necessity of repairing or replacing wear-and-tear items such as brakes and tires, so if you can maintain your vehicle at a relatively low cost, it’s likely worth the minor effort and expense of the occasional repair.
By following the manufacturer’s maintenance schedule, the average car will last 150,000 miles or more, freeing you from car payments for many years. When a repair becomes very expensive, however, it’s time to consider whether making that repair is worth it. Most cars require occasional large repairs during their lifetimes, such as replacing a timing belt or fuel pump, but once those are taken care of, you have likely resolved the most expensive common problems and will have a reliable car with at least a few good years left.
Can you afford a major repair or is your money better spent purchasing a new car? Once your car passes 150,000 miles, its best years are behind it. When a car is towed to a shop, you can expect to pay an average of $400 in repairs. If your car is consistently failing you, consider that the money you keep investing into your older vehicle for large repairs might be better spent on monthly payments on a new car.
AAA Approved Auto Repair facilities offer written estimates, warranties on parts and labor, plus dispute resolution. For a list of facilities near you, click on www.AAA.com/automotive.
–Joanna Newton, AAA Going Places magazine
Follow 3 tips to securing wealth each day
As complicated as some people make it out to be, there’s really nothing too involved with becoming wealthy. It really boils down to making some sound decisions day-to-day:
- Set goals. The adage, “If it doesn’t get written, it doesn’t get done” holds true here. Sit down and compose a basic plan that includes your current net worth and debt-to-income ratio. Then, map out a monthly budget and a plan for regular saving and investing.
- Spend cautiously. It’s easy when you begin making more money to want to buy a more luxurious car or move up to a nicer home. But before spending the money, ask yourself: Would I rather have a fancier car or would I rather be wealthy? Bottom line: If you take extra money and invest it instead of spending it, you could become wealthy. In the same vein, be wary of debt. Avoid using credit cards unless you can pay off the balance quickly. If you do carry debt, concentrate on paying it off as quickly as possible. The interest you’re paying is money you could be saving.
- Save often. Saving even small amounts over an extended period of time is a sure way to enjoy wealth. The key is to make it something you do regularly and consistently. Here, consider having a portion of your salary automatically deposited in your savings account each pay period (10 percent is a good place to start). Next, educate yourself about investing. After you have enough saved to cover emergencies and unexpected expenses, consider investing in quality stock and bond mutual funds. Just have money deducted from your bank account automatically every month.
AAA is committed to your financial future, offering exclusive member-only rates and benefits through our partnership with Discover Bank. For details, click on to AAA.com/Deposits, or call (888) 728-3230. |
