Time for new wheels?
As Australians, we love our cars. Australian Bureau of Statistics (ABS) showed that in 2021, there were 20.1 million registered motor vehicles on Australian roads whilst the Australian population as of September 2023 is 25.69 million. This means we have almost as many registered vehicles as we do people!
This number puts us up there with the highest in the world and it is somewhat encouraging to see that the same data shows that the average age of an Australian car is 10.1 years old. While common sense might suggest holding on to a car for as long as possible means you will get the most value out of it, there are often very good reasons to sell your existing vehicle and purchase a newer set of wheels.
Your lifestyle has changed
If you have held on to your car for 10 years, chances are your life looks a lot different today compared to the day you purchased it. Your family could have grown, the kids may have left the nest or you may not be covering as much distance as you used to.
Your car is a money pit or needs a major repair
If the annoying engine light keeps coming up, the exhaust is making funny sounds or your car regularly breaks down, it might be time to sell. The cost of repairs, time and inconvenience should all be considered when evaluating the current condition of your vehicle. If the costs combined look like they will cost near the value of your current vehicle, then it might be time to move on and consider purchasing a new vehicle.
Low fuel efficiency
Fuel prices have been on a constant climb over the years with a full tank of petrol potentially setting you back up to $200. Improving fuel efficiency has long been a focus for car manufacturers, and newer cars generally use less fuel. So, if the cost of fuel is bleeding you dry or you’re clocking up lots of kilometres every year, then the savings you make on fuel may justify buying a more recent car model.
The age of your car makes insurance more expensive
You can only hold onto a car for so long and over time this will start to drive up the cost of your insurance. The older a vehicle gets, the more likely it will be involved in an accident, so this could be factored into the price of your insurance premiums.
If you are short on funds for a new vehicle, consider taking out a personal loan to assist with your new car purchase.
Reference: Motor Vehicle Census, Australia, 31 Jan 2021 | Australian Bureau of Statistics (abs.gov.au)
