Quiz: match the 12 car parts with what they do
If your car is paid off (or nearly paid for) and repairs aren’t expensive, it’s probably a good idea to keep it.
The key to keeping a car running for 200,000 miles is in the care and maintenance you give it. Change the oil regularly, rotate the tires and don’t let small problems turn into big problems.
If your car has a high mileage, its days may be limited, but at the same time, you probably won’t get much from selling it. As such, it makes sense to drive the vehicle until it dies. Paying for cheap repairs on high mileage cars can be a good idea, especially if the car is being reimbursed. With expensive repairs, it might be better to upgrade.
An important factor to consider is rust. If your car rusts, it will get worse over time. Rust can cause significant damage to exhaust and powertrain components, among other things. And with heavy rust, it may only be a matter of time before components fail. It might be best to put your rust bucket on pasture.
Another consideration: the used car market is better than ever. CoPilot found that used car prices rose 43% from expected normal levels. Cars that should sell for $23,000 are selling for $33,000 instead. Kelly Blue Book is also reporting record prices for new cars, with vehicles costing around $48,000 on average.
If the used car you bought for $12,000 has less than 50,000 miles, you may be able to recoup the full cost in today’s used car market. If you sell, you could invest that money in a new car. Financing a new car has a very low interest rate, and with a high credit score, you might even be able to finance it interest-free. But don’t forget that the average price of a new car has hit record highs, according to KBB.com.