Hello Mabs
I'm almost finished paying off my car and everyone keeps telling me this is the perfect time to trade it in. But I love my car and it's still reliable. Is there actually anything wrong with keeping a car long after it's paid off?
Mabs answers:
Absolutely nothing. In fact, some of the most financially comfortable years of car ownership can begin after that final instalment.
The real question is whether the car still makes sense for you.
Look at its reliability, mileage, maintenance history and what you're spending on repairs. A paid-off car that is dependable and properly maintained can be far cheaper to live with than restarting another five- or six-year finance agreement simply because something newer is tempting.
But don't pretend an ageing car costs nothing. Keep putting some of that former instalment aside for maintenance, tyres and eventual replacement.I have seen many wonderful new cars over the years, and I love them.
But you don't owe yourself a new car simply because you've finished paying for the old one.
Sometimes no instalment is the real luxury.
