Repair or trade in?
I owe 5k on my car. It’s worth ~6k after an accident. Repair estimate is 3-4k. Is it more economical to go through with the repair and pay the car off, and trade in (I no longer want the vehicle) or trade it in now with damage? Maximum I could add to down payment is $1,000.
Posted Nov 4, 2022, 1:27 AM UTC
11
There are so many variables.
You have mentioned it was in an accident, did you put in a claim with your insurance company? If so, what is the deductible?
What is the interest rate on your current auto loan? How is your overall credit?
Do you have a specific vehicle in mind that is available right now or do you have a general idea of what you are looking for?
Points to consider:
I have 30 or so vehicles parked outside of my body shop waiting for parts. Some of the vehicles have been waiting for over 45 days. If you opt to have it repaired, it may be awhile before it’s completed.
Interest rates are rising and rising fast. If you are affiliated with a credit union, consider getting a pre approval NOW before they raise their rates. Generally, credit union approvals are good for 30 days. Even if you are unsure, one credit pull is not going to severely injure your credit score. I’d say it’s worth it (even if opt to keep your current car) to insulate yourself from the higher rates next month.