Bad credit in the auto sector.

How To Buy a Car with Bad Credit

0 By
Posted in Charge-A-Car Tips

There may be no universal minimum credit score needed to finance a car, but there can certainly be challenges. How can you leverage your credit to get a good loan and get on the road quickly? Here are a few tips on how to buy a car with bad credit.

Evaluating Your Finances

Before buying any car, you must evaluate your finances to know how much you can afford to put into a loan. Credit score and a down payment are some of the most important features to consider when applying for auto financing, and while your credit may be bad it’s not impossible to buy a car. First, save for a down payment. A down payment will help offshoot the high interest rate of your loan due to a low credit score. The higher the down payment, the better!

Then, compare loan offers. Shopping around is crucial for the best rate possible as different lending institutions tend to have different rates. Remember that you can also finance a vehicle through your dealership or car center!

Improving Your Credit

While your initial interest rates may be less-than-favorable, it is possible to use your auto loan as a way to improve your credit. While it’s best to pay off credit cards and lessen your debt before a purchase, timely payments on your auto loan could raise your credit score enough to refinance with a better rate at a better point in the economy. Remember that improving your credit by as little as 50 points can make a massive difference in your rates.

Get a Co-Signer

From the lender’s perspective, having a co-signer can mitigate the risk associated with lending to someone with poor credit. The co-signer serves as a backup for the lender if the primary borrower is unable to meet their monthly obligations. However, the challenge lies in locating a co-signer with a stronger credit profile who is willing to assume this responsibility.

Ultimately, having a co-signer can enhance negotiation leverage and potentially lead to a lower interest rate. Nevertheless, if the loan defaults, the co-signer’s credit score could be adversely affected, despite not having ownership of the financed asset. Avoiding strained relationships due to financial matters is crucial, underscoring the importance of diligent and timely repayment when a co-signer is involved.

Don’t Let Bad Credit Stop You! Let Us Help You Get on The Road Today

A vehicle is a necessity in today’s world. Without a car, it can be difficult to commute to work, buy groceries, or fulfill your other daily necessities. Let us help you get back on the road with a new-to-you-used vehicle! At Charge-A-Car we’re determined to help you find the vehicle that best suits your needs, independent of your credit history. Whether you have no credit or bad credit, our financing department is ready to assist you in any way possible. Click, call, or visit our lot today for incredible offers on all makes and models!

Classic white piggy bank floating in water.

Navigating Negative Equity Your Car and Your Finances

0 By
Posted in How To Guide

Dealing with a negative equity vehicle can be a stressful experience, especially if you’re looking to trade in or sell your car. But don’t worry—you’re not alone, and there are steps you can take to manage this situation effectively.

What is Negative Equity?

Negative equity, often called an ‘upside-down’ loan, occurs when you owe more on your car loan than the vehicle is worth. This situation can happen for several reasons:

  • Depreciation over time
  • Accidents or repairs that reduce the vehicle’s value
  • High-interest rates or long-term loans

When you have negative equity, selling or trading in your car can become more complicated.

How Negative Equity Happens

It can be surprisingly easy to end up in a bad situation ‘upside-down’ car loan. No-money-down purchases mean your loan not only involves the vehicle, but also the taxes, licensing, registration, and fees, making your financed amount larger than your car’s value. Long-term loans and rapid car depreciation due to usage and accidents are common culprits that lead to being in a tight, negative equity situation.

Options for Dealing with Negative Equity

1. Pay the Difference Upfront

One straightforward solution is to pay the difference between your car’s value and your loan balance out of pocket. This approach allows you to start fresh with a new car loan or lease without carrying forward any debt.

2. Refinance Your Loan

You may be able to refinance your current loan to a lower interest rate or shorter term, reducing your monthly payments. However, this option typically requires good credit and may not be available to everyone.

3. Keep the Car and Pay Down the Loan

If trading in or selling the car isn’t urgent, consider keeping your vehicle and making extra payments to reduce the loan balance faster. This method can help you reach positive equity more quickly without the need to take on additional debt.

4. Sell the Car Privately

Selling your car privately could fetch a higher price compared to a trade-in. While this might not get rid of your negative equity entirely, it could reduce the amount you owe significantly.

Get Help with Your Negative Equity Today!

Negative equity on your car loan doesn’t have to be a financial nightmare. By understanding your options and taking strategic steps, you can effectively manage this situation and move towards a more secure financial future.

Ready to take control of your finances? Schedule a consultation with our financing department today and let us help you get out of a bad situation and into a car you love! Visit Charge-A-Car in Aurora to regain your freedom financially and on the road!

Car symbol with with coins stack. Concepts of a symbol for buying a new car, vehicle car auto repair service maintenance.

A Newcomer’s Guide to Buying a Car

0 By
Posted in Charge-A-Car Tips

Buying a car can feel overwhelming for beginners, but fear not! Follow our simple guidelines to breeze through your first car-buying experience.

Research, Research, Research

Before diving into the car-buying process, arm yourself with knowledge. What type of car suits your needs? Which brand appeals to you? What are the insurance costs? Set your budget and explore financing options. Research is key.

Begin by identifying your car requirements. Consider features, seating capacity, towing needs, or cargo space. Explore fuel options beyond gasoline; diesel and hybrid cars offer alternatives with varying mileage benefits. Electric vehicles, though evolving, promise savings on fuel costs. Factor in not just the down payment but also financing and insurance expenses. Be aware that interest rates and insurance premiums can significantly impact your monthly expenses. Have your finances in order before coming to the dealership to finance and buy– it will help once you’re ready to make a purchase. Many dealerships even offer loans and credit checks in-house for your convenience! Charge-A-Car is no exception, with great financing options right on our website. 

Navigating the Dealership Experience

Different dealerships have different stocks of cars; a GMC Yukon XL drives much differently than a 2011 Honda Accord. It’s always a good idea to test drive any make and model you’re considering buying. Different cars handle differently and it’s important to get a good feel for a new vehicle before signing into a years-long commitment.

Once you’ve decided that you like a car, it’s time to negotiate. Negotiating can seem intimidating, but it’s always important to get the best deal possible. Come prepared with any paperwork needed, a firm understanding of your credit history, and the right questions to ask.

Seek Assistance When Buying A Car

Feeling uncertain or overwhelmed? Don’t hesitate to seek guidance. Forge a relationship with your local dealer. At Charge-A-Car, we’re committed to helping you find the perfect vehicle. Our goal is your satisfaction and ensuring your car meets your needs. Drop by today, and let us assist you in finding a car you’ll adore.

Credit rating agency concept. Vector illustration in flat style

Can You Use Your New Car To Build Credit?

0 By
Posted in Blog

Credit can be a major roadblock to new car buyers. Growing your credit can be a challenge for some, but can you use a car loan to build credit?

What Influences Your Credit

In the same way that there are different ways to build your credit score, a few factors influence the fluctuation of credit over time. FICO – the data analytics company that developed credit calculation from credit reporting agencies – lists payment history, amounts owed, length of credit history, new credit, and types of credit as some of the key influencers of your credit score.

Some ways you can influence your credit include your ability to make payments on time, the amount of money owed, how long you’ve held the loan or credit line, how frequently you open new credit accounts, and the mix in types of credit (credit card, installments, retail accounts, mortgage, auto loans).

How A Car Loan Can Affect Your Score

A long-term loan like an auto loan can prove to credit institutions that you’re a ‘responsible borrower’ which is one of the significant premises behind the credit system. When applying for any loan, it’s important to get the best rate possible. While your initial rate may not be stellar, there is always the option to refinance your loan in the future once your credit has improved. Refinancing is the process of getting a new loan to pay off your existing loan. And, while new loans can cause your credit to briefly lower, a refinanced loan can significantly improve your interest rate. When deciding to refinance, wait until you’ve seen significant growth to your credit and during a period of low interest rates for maximum effectiveness.

No Credit? Smaller Ways To Build Credit Before An Auto Loan

An auto loan can be a big step, but there are smaller, easier ways to build your score until you’re ready to use an auto loan to build credit. One of the easiest and most common ways to build credit is by paying down existing debt balances and using credit cards. If you’re new to credit, building a credit history with credit cards for small purchases and paying off your full bill each statement will get you well on your way! If you already have credit lines, paying off your existing debt down to 30% utilization is another great way.

Get On The Road Today While You Build Credit

Financing a car is a big deal. At Charge-A-Car, our financing options can get you back on the road while building your credit. A car is a necessity, and you can’t afford not to be on the move! While an auto loan isn’t a magic bullet for improving your credit, it’s one of several options you can use to work towards a higher score. Let our team help you achieve your dreams of car ownership and great credit!

Five Ways to Lower Your Monthly Car Payments

0 By
Posted in Charge-A-Car Tips

Change is a vital part of life, but it’s also something that’s largely out of our control. When you initially finance your vehicle, you’re looking for the best way to accommodate your current lifestyle. But jobs, relationships, and the economy all change over time, and you might be stuck making monthly payments that are no longer in your best interest. 

Fortunately, Charge-A-Car is here with steps you can take to lower your monthly car payments. Many of these suggestions involve tips to finance your vehicle before purchase. All are designed to save you the maximum amount for the remainder of your loan term.

Refinance Your Car 

Refinancing is one of the most practical and common methods of securing a lower monthly payment. We touched on life changes that can adversely affect you – but there can of course come positive change as well! For example, if your credit score has increased since you took out the original loan, you should be able to qualify for lower interest rates. If you’re attempting to refinance and multiple lenders have calculated your rate as the same (or worse) as your original rate, it might be time to look into elongating your loan term. Speaking of… 

Extend Your Loan Term 

By negotiating for a longer loan term, you’ll pay less each month: a 72-month loan involves smaller payments than a 60-month term, 60 months is cheaper per month than a 48-month term, and so on. This makes longer loan terms ideal if you’re living paycheck-to-paycheck. You will ultimately wind up paying more over the duration of your longer loan term due to compounding interest rates – but if your immediate focus is on surviving month-to-month, a longer loan term might give you the breathing room you need above all else right now. 

Put More Money Down 

If you have the means to do so, don’t be afraid to add a little extra to your initial down payment. Chances are you’ll thank yourself for it within a few months. The more money you put down up front, the less you’ll have to finance, and the lower your monthly payments will be. This, in turn, leads to less total interest. It may hurt in the short term to put down $2,000 on a $10,000 loan – but when you factor in the accumulated interest you’ll ultimately be avoiding, all you’re doing is saving your future self a lot of money. 

Find the Lowest APR

One surefire way to lower your interest rate? Shop for a low interest rate at the outset. Auto loan APRs vary based on your credit history, but they can also depend on what lender you’re working with. Before purchase, do your research to make sure you’re getting a reasonable APR figure. According to Experian’s State of the Automotive Finance Market Report for the third quarter of 2023, the average interest rate for a used vehicle is 11.35% (up from 9.38% a year ago). Follow market trends and carefully consider whether you want to invest more than the average rate. 

Sell or Trade Your Car 

Want to pay the lowest amount possible each month? How does zero dollars sound? Well, it’s simple – all you need to do is sell your vehicle! Selling your vehicle is the one foolproof way to get rid of monthly car payments altogether. As long as the car’s value covers the rest of the loan, you’ll start anew with a fresh slate – and this time, you’ll be able to enter the car buying process with our pre–financing tips in mind. 

If you’re looking to trade in your vehicle, Charge-A-Car is the place to go. We’ll draw you up a fast, free estimate of what we’d pay for it. And while you’re here, browse our inventory for your next vehicle, which we’ll help you finance on the spot! Give in to change and discover what a more financially secure future looks like here at Aurora’s used car headquarters.

The Top 10 Compact SUVs You Can Find Under $20K

0 By
Posted in Listicles

We know the drill: prices are up around the country (and at the pump), and the automobile industry hasn’t been exempted. But as we detailed in our post of the best SUVs for under $20K, great deals can be found if you know where to look. 

If you’re looking to go slightly smaller with your SUV search, a compact SUV may be just the thing you need. Here at Charge-A-Car, we tracked down 10 recent-model compact SUVs that you should be able to find without breaking the bank. 

2018 Mazda CX-5 

If you’re looking for a dynamic compact SUV, you might not find a better option than the 2018 Mazda CX-5. Powered by its 2.5-liter, naturally aspirated motor, the CX-5 features awesome steering and handling. Its luxurious interior and top safety scores are just the cherries on top. If you value performance above all else, look no further than the Mazda CX-5. 

2018 Hyundai Tuscon 

The five-passenger 2018 Hyundai Tuscon will have you feeling at home within your vehicle with its spacious, quiet cabin. Featuring some of the highest safety and predicted reliability ratings around, it might lull you into thinking it’s your standard, family-friendly compact SUV. That’s until you dig in and discover its thrilling turbocharged engine option.  

2017 Honda CR-V 

One of the most iconic nameplates on this list, the Honda CR-V is a perennial best-seller for its class. But while the newest CR-V may threaten to break the bank, a comparable model can now be yours for just an average of $20K. Featuring a spacious cargo area, ample rear seat legroom, excellent fuel economy, and top safety scores, the CR-V’s weaknesses are miniscule. 

2018 Toyota RAV4

Perhaps the most recognizable compact SUV in the segment other than the CR-V, offers many of the same strengths as Honda’s compact: a roomy interior, efficient powertrain (which includes an available hybrid option) and a sold lineup of equipment and features. It’s also remarkably comfortable in motion, with many citing the smooth ride it gives you every outing. 

2018 Subaru Forester 

The Forester enjoyed an impressive sales tick for Subaru in 2023, with a spike of 34 percent. It’s easy to see why its popularity is exploding; with ample storage space and off-road finesse, the Forester has become one of the most versatile compact SUVs on the market. Get in on the ground floor with the 2018 model and see what all the fuss is about. 

2019 Kia Sportage 

Another vehicle that has by now become synonymous with reliability, the Sportage is a thoroughly balanced vehicle. Its spacious, upscale interior, user-friendly infotainment system, and easy handling make this a perfect entry-level SUV (provided you can overlook the slight downtick in cargo space and gas mileage, compared to some competitors). 

2019 Chevy Equinox 

The Equinox regularly boasts outstanding predicted reliability ratings, putting it near the top of its class year after year. The interior, while not quite as well-stocked as some comparable cabins, still offers plenty of room and comfort. But when you throw in its powerful turbo-four engine and class-leading fuel economy with diesel powertrain, the Equinox is constantly full of surprises. 

2018 Nissan Rogue 

If top-tier gas mileage is at the top of your shopping list, the Nissan Rogue has you covered. It’s not the most powerful compact you’ll find, but it may just be the one that keeps you on the road longest. Plus, amongst all compacts, it boasts one of the lowest total cost-of-ownership costs. Throw in an upscale and spacious interior and tons of advanced safety features, and the Rogue might be the total package you’re looking for. 

2018 Volkswagen Tiguan 

Like the Nissan Rogue, the Tiguan won’t blow you away from a performance standpoint with its modest single engine. What VW’s compact does offer are many user-friendly features and tons of cargo space, with an especially roomy second row. The Tiguan also scored high marks on its crash-test and predicted reliability ratings. 

2018 GMC Terrain 

The GMC Terrain is well-equipped, comfortable, and about all else you can ask for from an interior perspective. You’ll find underfloor storage and forward-folding front passenger seats, creating all the cargo room you could ask for. (The stylish exterior is no slouch itself.) To hit the sub-$20K point we’re aiming for, you’ll probably want to scope out the mid-range Terrain SLE. 

Discover the Deal of a Lifetime Today

Though these affordable options are the best in the market, it can still be difficult pinpointing the best match for your lifestyle. Fortunately, at Charge-A-Car, you’ll be provided with all the assistance you need to find the vehicle for you.

We make finding your dream car as simple as can be at Charge-A-Car, from our expansive inventory to our on-the-spot financing. Schedule your test drive at Charge-A-Car today and drive off into a more financially secure tomorrow. 

A Guide to Organizing Your Car’s Paperwork

0 By
Posted in How To Guide

As winter retreats here in Aurora, we look ahead to the spring and one of its inaugural activities: spring cleaning. Much more than dusting windowsills and scrubbing sinks, spring cleaning is an opportunity to take inventory of your life, a conscious un-cluttering of both your personal space and your mind as you prepare for the year ahead. 

Part of this process includes properly organizing your paperwork. As with anything else in modern life, car ownership involves a great deal of documentation. It can be overwhelming to keep everything straight – but simplifying your auto needs is what we do here at Charge-A-Car, where you can purchase and finance your next car in the same afternoon! 

What You Should Have 

License & Registration: If you’ve ever seen someone pulled over in a movie, chances are you know to always have your license and registration handy while driving. Make sure your registration is up to date; if the expiration date is near, take the necessary steps to renew it. It should then be signed and stored somewhere in your vehicle, such as the glove compartment or beneath the central console. As for your driver’s license, hopefully it’s already safely stored away in your purse or wallet – otherwise, your spring cleaning to-do list just got longer. 

Proof of Insurance: Owning vehicle insurance is a requirement for every licensed driver. It’s another item you’ll want to keep in your car in the event that you’re pulled over. You should also have it on hand in case of an accident, so that you can exchange insurance information with the other driver. At the very least, keep a photo of your insurance card available on your phone.

Vehicle Title: Unlike your registration and insurance cards, the title to your car needs more protection than your glove compartment can offer. This piece of paper is the only proof of ownership of your vehicle that you have, making it immensely valuable. Keep your title stored away in a secure place you’ll remember, such as a home safe. 

Service & Maintenance Records: Though documenting your vehicle’s history of service and maintenance isn’t a requirement, it’s still a good idea. It will keep track of what services were performed when, so that you’ll know the next time you’re due for, say, an oil change. More importantly, keeping detailed records of your car’s history will serve you well when it comes time to sell. 

Keeping Your Paperwork Organized 

While your registration and insurance should be kept inside the vehicle, we recommend keeping all other paperwork together. A safe space in your home is preferable, as it allows you regular access. This includes the title and service records, but also any other relevant paperwork, such as warranty and emissions test documentation. If necessary, divide and categorize accordingly, i.e. keep your insurance payments bundled together. Make sure you have the proper storage space to accommodate everything. 

In today’s digital world, it’s important to back everything up. Make physical copies of your paperwork if that’s your preference, but also consider uploading your files to cloud storage. By digitizing, you’re ensuring your files will remain available to the world – even when you’re having difficulty tracking down their physical counterparts. 

One Last Step 

Once you’ve collected and organized all relevant paperwork, your future suddenly becomes much more open. For starters, you now have everything you need to trade in your ride today! Any vehicle in our extensive inventory could be yours when you schedule your test drive at Charge-A-Car, Aurora’s number one spot for used car shopping. 

Presenting the Car Buying Dictionary

0 By
Posted in Charge-A-Car Tips

The used car buying experience can sometimes feel like it’s operating with its own language. Gap insurance, loan-to-value, negative equity… understanding all the terminology thrown at you can be intimidating.  

Here at Charge-A-Car, our goal is to make the car buying process as simple as possible. For that reason, we’ve assembled this convenient dictionary to break down some of the auto jargon you’ll encounter on your car buying adventure.

Down Payment: 

A down payment is a lump sum of money you give to the dealer upfront before purchasing the car. At virtually all buy here pay here (BHPH) dealerships, a down payment is required to get approved for a loan. If you’re able to put down an amount larger than the minimum required, it means lower monthly payments moving forward.

A down payment at a BHPH is typically around 20% of the car’s selling price. Since BHPH dealers rarely run credit checks, this amount may be higher than at other dealerships, to help mitigate the sellers’ risk. Fortunately, a higher down payment means lower interest rates for the duration of your loan.

Gap Insurance: 

Gap insurance – also known as loan gap coverage – is an optional car insurance coverage. In the event that your car is damaged or stolen and you owe more than the car’s depreciated value, gap insurance is there to help cover the difference. It’s called gap insurance because it helps pay the gap between the depreciated value of your car and what you still owe on it. 

Because the average used vehicle depreciates quickly – 20% after driving it off the lot and 10% in the first month of ownership is the general barometer – it’s not unusual to owe more on a loan than your vehicle is worth, making gap insurance a crucial investment. 

Interest Rates: 

Interest rates – or simply loan rates – are what you’re charged every month as part of your loan agreement. A percentage of the total loan, interest rates represent what you pay monthly in addition to the base amount. Many buyers choose to finance with longer-term loans in order to reduce interest rates, with average loans landing between 70-80 months. 

Loan-to-Value Ratio: 

A loan-to-value ratio (or LTV) is the total dollar value of your loan divided by the actual cash value of your vehicle. For example: if you take out a $25,000 loan to buy a $30,000 car, your LTV would be 83%.  

LTV changes over time as you pay off your loan. That can be largely attributed to the vehicle depreciating as it ages and racks up miles. LTV also naturally declines as you continue to pay off the loan, lowering the loan portion of the ratio. 

Monthly Payments: 

Perhaps the most straight-forward term here, monthly payments are simply the amount you’re paying towards your loan every month. What’s important here are the guidelines you should follow to make sure you’re not biting off more than you can chew. The average monthly payment for used cars is approximately $533. In general, no more than 10-15% of your monthly take-home income should be spent on your monthly payments. 

Negative Equity: 

Negative equity is when you owe more on your car than it’s worth. For example, if your loan amount was $30,000 and you still owe $15,000 – but your car is only valued at $10,000 – $5,000 is your negative equity amount. Many factors can cause negative equity, including low down payments or putting excessive mileage on your vehicle. 

For more info on how to bridge this divide, see “Gap Insurance.” 

Experience Great Deals, Redefined 

Transparency is of the utmost importance to us at Charge-A-Car. We’ll work with you through every step of the financing process, breaking down each component and defining each term. After all, used car buying should be a pain-free experience. Schedule your test drive at Charge-A-Car today, and drive into tomorrow with a clear path forward. 

Why Used Car Buying is the Way to Go in 2024

0 By
Posted in Listicles

As the first month of 2024 comes to a close, there’s never been a better time to shop for used vehicles. Thanks to modern day enhancements, cars are built to last in ways they never were before, creating a robust and diverse used car market. 

Today, Charge-A-Car presents five reasons why it’s time to pay a visit to Aurora’s number one used dealership.

1. They Cost Less Now 

Let us first confirm that, yes, a used car still costs less than a brand-new car, and always will. The economy’s ups and downs have compounded the new car market in recent years. However, used car shopping remains as approachable as ever.  

By buying used, you’re able to bypass several of the fees and taxes typically associated with new car buying. Insurance costs are curtailed, as used cars have already depreciated in value and thus come with reduced premium rates. Furthermore, if there’s a specific new model you have your eyes set on, chances are you can find a comparable, more affordable model that’s only a year or two older. 

2. They Also Save You Money Down the Line 

When you buy used, you’re not just saving money on the purchase price – you’re making a wise investment. Used cars generally tend to be cheaper to maintain and repair than new cars. Used cars have been on the market for years, making their parts more readily available for purchase.  

New cars straight off the assembly line may not have odometer readings, but they also have no previous owner history, leaving you with no point of reference when something goes amiss. Before you purchase a used car, make sure you look into the vehicle’s history report, which gives you a comprehensive overview of its health and potential warning signs to stay alert for. Use CARFAX or a similar site to complete your due diligence. 

3. Less Vehicle Depreciation 

The adage about new cars is that they depreciate the moment you drive them off the lot. New cars typically depreciate by roughly 20 percent upon leaving the dealership. Their value then decreases an additional 10 percent during their first year of ownership. 

Used vehicles have already weathered that initial, unavoidable depreciation hit. As such, they’ll continue to depreciate at a much slower rate moving forward, making your cost-to-value ratio more stable as a result. 

4. A Larger Selection 

Variety is the spice of life. New car shopping automatically limits you to the styles and trends of this year’s models. But there are plenty of fish in the sea, and millions of unique used cars to select from. From vintage cars no longer in production to optional colors and features that were exclusive to a particular year’s model, your dream car awaits amidst a sea of virtually infinite options. 

5. More Car for Your Buck 

Modern vehicles are built to last in ways we never imagined at the turn of the century. 200,000 miles on the odometer is the new 100,000 (or close enough to it). Most new vehicles come with generous manufacturer warranties that could potentially be transferred to you after you buy. And with the advancements that have been made with safety features and apps, buying an older model carries less risk than it did in the past.

For these reasons and more, there’s never been a better opportunity to get the most bang for your buck when you buy used. 

Discover the Used Car of Your Dreams Today 

Now that we’ve covered how much sense it makes to buy used, your next step is finding your dream car amidst our used selection here at Charge-A-Car.  

Schedule your test drive today and prepare for the huge savings heading your way. We’ll get you completely financed and squared away before you drive off our lot. After one trip to Charge-A-Car, you’ll discover why used car shopping is the only way to car shop. 

Fix or Flip? How to Handle a High Repair Estimate

0 By
Posted in Charge-A-Car Tips

We’ve all been there. You encounter an issue with your vehicle, dutifully take it to a garage or dealership, and are rewarded with a repair estimate that blows past your budget. Inevitably, the question enters your brain: do I bite the bullet and pay for repairs, or is it time to trade my vehicle in for another ride? 

It’s a genuine dilemma, because there aren’t necessarily right or wrong answers. But with Charge-A-Car‘s help, you can make an informed decision and proceed accordingly. 

Step One: Analyze The Cost 

First off, don’t beat yourself up over a large repair bill! Even for drivers who are as diligent with their self-maintenance as possible, some high-priced repairs are unavoidable. No automobile is designed to last forever, and wear-and-tear items like belts and brake rotors inevitably need to be replaced. Then there are battery failures, which almost always cost a pretty penny. 

Keep in mind that it’s almost always less expensive to repair your car than buy a brand-new car, and it’s often still cheaper than trading for a newer, used vehicle. But when you’re dealing with a big-ticket issue such as a failed transmission or blown motor, and the estimate surpasses $5,000, it could be time for a big decision. 

Step Two: Weigh the Pros and Cons 

For the sake of this example, let’s say you’ve just been handed a $5,000 service estimate. It’s a daunting number, making the decision to fix or flip more overwhelming. Before the situation can snowball, break it down into a list of pros and cons. Then, after considering every factor, decide which side you fall on. 

Pros for Fixing: 

  • FIX if you’re saving for a brand new car and are confident the repair will keep you on the road in your current vehicle for another year or two. If a new car still seems like a viable option afterwards, you’ll hopefully have saved enough to make it possible.
  • FIX if you’re planning to trade for a comparable vehicle. Although trading for a used vehicle may be cheaper than paying for the fix, there’s no guarantee that any vehicle you trade for won’t come with its own set of issues. Check CarFax.com or a similar source to check the vehicle’s history before deciding. 
  • FIX if the car means a lot to you. Seriously, don’t discount sentimental value. If the car was a gift from a loved one or a dream car you worked hard to afford, don’t give up on it just because a calculator tells you you’re making the right move. You may wind up regretting it. 

Pros for Trading Up: 

  • FLIP if your current car has been experiencing recurring issues. If you’ve been making frequent trips to the garage recently, it’s most likely time to move on from it. 
  • FLIP if the repair bill is more than half the value of your vehicle. Consider trading up at this point, as the next issue you encounter could lead to a total loss.
  • FLIP if your current car is seriously lagging behind in modern safety features. If your car lacks emergency braking, collision detection, blind-spot monitoring, or other modern safety amenities, consider trading up to a more recent model for the sake of your own safety. 

Step Three: Make the Call 

Ultimately, the decision to fix or flip is your own. If you’re still having doubts or have questions, our team of professionals will guide you to the right path. Value your trade with Charge-A-Car today, and if you decide it’s time to flip, schedule a test drive! We’ll settle the finances before you drive off our lot, ensuring you some much-needed peace of mind as you drive towards life’s next destination.