Weighing Your Options
Choosing between a new car and keeping your current one depends on safety, reliability, repair costs, and budget. If your car is paid off and affordable to maintain, keeping it is often the smarter choice. If not, consider upgrading if the new car's cost is within 15% of your total budget and your debt is below 36% of your take-home pay.
When to Buy a New Car
If your current vehicle is nearing the end of its lifespan and maintenance costs are nearing half of your annual car budget, it may be time for a new one. New cars offer better fuel efficiency, safety features, and reliability, but if a new car isn't affordable, leasing or buying used are solid alternatives. Before making a move, ensure your current loan is paid off or know your car's trade-in value.
When to Buy a Used Car
If a new car isn't in your budget, a well-maintained used car, especially one coming off a lease, can offer great value with lower mileage and updated repairs. Used cars also depreciate more slowly, helping them retain value longer than new vehicles. Tools like CARFAX can help you check a car's maintenance history before buying.
Estimate Your Monthly Payments
If you've decided a new car is right for you, calculate your expected monthly payments to determine which make and model to buy. Your credit score plays a big role in the rate you receive and you can check it for free through services like Credit Karma or annualcreditreport.com. When you're ready, BancFirst can help you explore financing options and find the right fit.