These days, it’s almost trendy to be frugal, rather than buy something new. But how do you know when it pays to hold onto that trusty old Betty, and when to buy a new one?
Figures I found stated a four-year old car (your average American family sedan) costs around $7,500 to operate over another 4 years. But given the same conditions and mileage, a new car would cost over $14,000 to operate for the next 4 years. That’s almost double!
Sometimes it is time just to throw in the towel if repair bills are costing you more than your budget allows, but it’s good to know what a car should cost to operate when you’re considering if it’s an important enough investment for you.