The thought of a new vehicle is exciting; no more repairs, better gas mileage, a great looking new ride. And while getting more miles per gallon sounds appealing the truth is that better gas mileage will only save you a few dollars at the pump.
A new vehicle comes with a new monthly payment and higher insurance. What ever you may save at the pump won’t come close to off setting the expense of new monthly payment and insurance. Newer vehicles still require maintenance, if you commute long distances you can easily have 60,000 miles or more on a two or three year old vehicle, with two to three more years to pay on the vehicle loan. At 60,000 and 90,000 miles most vehicles have some suggested factory scheduled maintenance.
Think of the money you would have if you didn’t a car payment. For example if you saved $450 a month, in just a year you would have $5,400. Investing a few hundred dollars or $1,000 a year in regular maintenance and repair will save you thousands over the next five to six years. Keeping your older vehicle is where you will find your true savings. You vehicle is the second largest investment you make after purchasing a home. If someone says you will always have a car payment they are wrong. You don’t have to have a keep a monthly vehicle payment to keep a well running, fuel efficient vehicle. Updated April 13, 2015