Top 10 Solutions for Old Car

Here at Cash 4 Cars Cleveland we are reviewing and analyzing the top 10 solutions when dealing with an old car. Although we are in the cars for cash business, this is certainly not the ideal resolution in every instance. C4C is a vehicle scrap company and although most of the day we are on the phone providing a junk car quote, we find time to educate and post related automotive news and content, which is predominately based on learning from our past mistakes.

1. Is your desire for a new vehicle a “want” or a “need”? Is the idea of having a nicer car a means of making yourself happier? Sure, a shiny new car does lift one’s spirits—but is the financial impact of the decision going to off-set it?
2. One important factor to consider is whether your current vehicle is paid off or not. If your current vehicle has a “free and clear” title, the value of the vehicle can assist in paying for a new one. If the car runs you will likely sell it for a higher amount then you would receive from trading it into a dealership. To sell the car yourself we recommend consulting Kelly Blue Book or Edmunds to determine the value and then proceed to sell it. Most people choosing the dealer trade-in option will admit that they did so because it was easier and more convenient.
3. Your credit has a tremendous influence, assuming that you plan to finance it and make monthly payments. Interest rates can vary between 0% and 17-18% depending on your credit worthiness and entering arrangements to finance at higher than 9% is rarely a good decision.
4. Prior to selecting a vehicle you should consider the impact on your auto insurance rates, particularly if you have accidents, citations or claims that occurred in the last few years. Insurers can go back as far as 5 years to evaluate you. Your credit history, age and the value of the car you intend to purchase play a major role in the cost of your insurance premium.
5. Your personal debt to income ratio needs to be reviewed. Having disposable income and adequate savings are critical to your life and it is not recommended that your monthly car payment exceeds 18% of your take-home pay. For example, John has an annual salary of $30,000, which is $24,000 after taxes, thus $2,000 per month. His car payment should be less than $360 per month (18%) since when you consider fuel, parking, maintenance and insurance will likely drive the total cost of ownership up to 22-24% of his income. Ideally, John should have a maximum payment of $310 per month (16%) so that total cost of the car is only about 20-21% of income at the most!
6. Is your need to change or upgrade your vehicle is based on a change in your personal or occupational life—you more than likely should. For example, if you changed jobs and the new one is 30 miles from home, rather than the 8 mile commute you currently have, a more fuel efficient car may be a solution. Another example is that you currently have a 2-door sport coupe and now will be transporting two small children and their toys, cribs and strollers on a regular basis, where additional space is necessary. These decisions are more justifiable since based on needs rather than strictly your desire.
7. It is important to consider your ability to save money. We all know our individual “track records” when it comes to saving money to protect against the unexpected. If you do not have a combined 15-20% on hand in cash or trade toward your new vehicle purchase, you may want to make a change. Commit yourself to saving money for a period of months applying it toward your auto purchase. You will owe less money to the lender and ultimately make you more financially “sound” moving forward.
8. Are you committed to the idea of having to buy a new car? Often times the difference between the newest versions of the car you like and a late-model (2-3 year old) used version of the car is larger than you think. Many dealerships offer certified warranty programs for late-model used cars, since the new factory warranties typically apply only to the original owner (buyer) of the car.
9. One constant concept to understand as it relates to automobiles is depreciation. A car’s value will typically decrease over time (with rare exceptions) meaning that during each passing year and each segment of mileage you accrue, your car’s value declines. When you finance a vehicle, it is critical to consider depreciation, particularly as it relates to the term of your auto loan. For example, John purchases a new $25,000 vehicle with a 7-year (84 month) term in 2015. Both carsdirect.com and Wikipedia indicate that annual yearly depreciation of an automobile is approximately 15%, meaning the value of this car will decrease annually by approximately $3,750. After the 7 year/84 month term is up the vehicle could lose over $26,000 in value. Hopefully you consider depreciation in your next auto purchase and remember: automobiles are NOT an investment.
10. The final point of emphasis here is that likely several of the factors discussed here are relevant to your individual situation. One way to evaluate is to put together a summary to compare the pros and cons associated with the decision, taking into account the financial aspects and make a solid decision.

Cash 4 Cars Cleveland buys cars for cash 7 days a week in NE Ohio. For a junk car quote, simply call (216) 359-1010 today. We handle vehicle scrap in Euclid, Garfield Heights, Eastlake, Parma Heights, and Lakewood. To sell cars for cash in Linndale Village, Newburgh Heights, Seven Hills or Beachwood, you should contact our junk car buyer. Those looking for a junk car quote in Bedford, Bentleyville Village, Tremont, Bratenahl and Chagrin Falls are encouraged to call. Residents of Mayfield Heights, South Euclid, Cleveland Heights, Wickliffe and Brecksville can visit https://www.cash4carscleveland.com to get pricing. Our vehicle scrap services are proudly serving the communities of Bainbridge, East Cleveland, Chesterland, Moreland Hills, University Heights and Maple Heights from 8AM to 6PM daily, with more limited weekend hours. We can pick up from Firestone Service Centers, Conrad’s locations, transmission shops, Goodyear stores, Midas locations, NTB locations and Monro Muffler & Brake shops. Our service area now includes Warrensville Heights, Solon, Twinsburg, Walton Hills, Northfield, Oakwood Village, Glenwillow and Aurora. Free towing is available with each scrap car we buy in Collinwood, Sagamore Hills, Pepper Pike, Shaker Heights,, and North Randall. Saturday vehicle scrap removal service is available in Macedonia, Lyndhurst, Cuyahoga Heights, Highland Heights and Richmond Heights. We are buying cars for cash beginning in March 2015 in the areas also: Streetsboro, Mentor, Willoughby, Berea, Middleburg Heights, Geauga County and most of Lorain County.