Happy
New Year! Well, another year has come and gone. I hope you
received those “special” parts that you wanted
from Santa. There is always something to do on our cars as
proved by the projects we see on our Facebook page. We can’t complain
about the weather either, unless you’re a farmer
or forest fire worker. At some point we are going to need a
good snowfall to saturate the farmer’s fields and forest
floor. I have yet to wear a winter coat, gloves or boots.
My 2003 Aurora has gotten too old to
keep. It was a great car but I had to move on as the estimate
for parts and
labour was
too high compared to the cars worth. Also
it needed too many things at once. Spending $4000 to fix a
20 years old daily driver
wasn’t worth it for me. So as some of
you know, I picked up an newer Impala. Back up camera, Navigation,
305 NET HP V6 (vs. the Aurora’s
250 NET HP V8),
phone charger etc. I just had to do the same with a new furnace.
Not worth paying $3000 to fix a 30 year old furnace. So a new
one was ordered.
I found this article on how to know when it’s time to
move on to a newer car. For me it was when the diagnostic show
that multi parts were needed. Some parts were
found out to be unobtainable. So I guess it was time to move
on. She was a great car and didn’t
have any corrosion or rips in the interior.
Turns out someone wanted it more than I did. Found this article
on when you should look
at buying a new
daily driver. It’s an interesting read.
By Ritika Dubey, The Canadian Press
TORONTO — Deciding whether to
fix your aging car again or trade it in for a new one can
be a tough calculation at
the best of times, let alone when financing
costs have significantly jumped and car prices have soared.
Whether to repair or replace your car comes
down to balancing the cost and utility of the vehicle, according
to Ben Mayhew, a financial planner and founder of Aergo Financial
Planning in Halifax. “
But when you’re in an environment where used car prices
and new car prices are significantly higher, we need to go
deeper on looking at that balance,” he said.
He suggested finding a trustworthy mechanic
who can help determine if an expensive repair could help
defer a car
purchase. Whether
to head to the garage also depends on the
health of the other parts of the car. If it’s a big one-time
cost and you’re
extending the car’s use to the very end of its life,
it could give the owner more time to save toward a vehicle
purchase
in the future, Mayhew said.
On the flip side, he said you don’t
want to get stuck in a constant repair cycle. “If you’re
having higher repair costs and not having access to the car
when you need it more, it becomes a lifestyle decision.” He suggested
comparing the cost of repairs to the monthly payments on a
new car and
evaluating whether the mechanic visits are going to be more
taxing on your wallet than an auto loan. Other experts remind
car owners that regular maintenance could stave off a bigger bill.
“
People think they’re sinking money into something that
doesn’t have quite as much value,” said Teresa
Di Felice, assistant vice-president of government and community
relations at CAA. “(But) it’s
still likely going to be less expensive than buying a new vehicle
or even a used vehicle right now.” It’s
also important to understand what it costs to operate your
vehicle, Di Felice said. This
includes expenses such as fuel and insurance,
all of which are relevant to the decision to buy a new car.
Daniel Ross, a senior manager of industry insights
and residual value
strategy at automotive data company Canadian Black Book, said
trends in the wholesale market for used cars suggest prices
are on their way down. “We’re
getting back down to an area where prices are declining in
the wholesale market, which will in
turn come to the retail market,” he said.
Ross said affordability will likely
improve in the retail market over the next six to 12 months,
along with expected
interest
rate cuts from the Bank of Canada — favouring
the case for buying a new car over repairing the current one.
The cost of buying a vehicle
goes beyond just its
price tag. Those looking to buy should think about the monthly
expenses and upfront costs, including the initial down payment,
and account for the potential proceeds of
selling the existing vehicle, Di Felice said. “People
are waiting (it) out,” she
said. “They’re hanging onto their
vehicles to see what’s going to happen down the way with
interest rates.” Aside from financing promotions, the
average car buyer can expect interest rates
on their auto loan between 6.7 per cent and 9 per cent, depending
on several aspects such as their
credit score and whether the rate is fixed
or variable, according to Finder.ca. In a perfect world, Mayhew
said people would regularly save
for a new car purchase, but that’s not
typically something that’s
built into many people’s budgets. Mayhew suggested people
take a proactive approach to avoid an unexpected
and high-stress purchase. This could mean planning to have
the car longer than the term of the payment
plan. “If you’re on a five-year payment plan and you keep the car for 10 years,
keep putting away that payment for an additional five years,” he
explained.
“
Now you’ve got quite a nest egg to allocate toward that
larger purchase in the future.”
Mayhew
also said taking taxis or public transit can be other ways
to delay repairing or replacing a vehicle. But it all
comes down to personal choices and lifestyle. “You are
the person that understands your lifestyle the best,” Mayhew
said. “For some
people, not having a car isn’t an option.” This
report by The Canadian Press was first published Dec. 21, 2023
Looking for a couple of volunteers for
membership and for the Rocket Round up. If you’re an
officer, membership is free. Anyone? All the best in the new year, until we meet again.
Ken
|