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How long should I keep my car?

Thinking about getting a new car or truck? When is the right time to sell your car? We can help you with these questions and more.

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It's a question every car and truck owner struggles to answer: Should I replace my vehicle or keep it for a few more years? Here are some factors to consider when deciding whether to part ways with your ride.

Better technology

Not that long ago, consumers replaced their cars because they weren't built for the long haul. Today, vehicles are lasting longer, thanks to improvements in design and production techniques. So it's no surprise that people are driving them longer, and the average age of light cars and trucks in America has been rising.

Repair or replace?

Confidence in your vehicle, even with its improved quality, begins to wane sooner or later. If you're like many, the biggest reason behind wanting to purchase a new car is the fear that your current ride will need an expensive repair (Opens in New Window).

Conventional wisdom suggests it's a bad idea to keep putting money into the upkeep of an older car. But replacing your car may be more expensive than finding affordable ways to maintain your car (Opens in New Window).

That's especially true if you're thinking of buying a new vehicle over a used one. Although depreciation varies depending on the make and model, there's a chance that the moment you're handed the keys, the value of your new car or truck will decrease.

Factors that can influence this include supply and demand of vehicles and other market conditions. In certain market conditions, vehicles may actually be worth more.

Bottom line: Even your most dreaded repair bill may cost less than the first-year depreciation of a new car. While the initial depreciation isn't as much if you buy a used vehicle, it's an important factor to consider.

Preserving your car

If you decide to embrace longevity, maintaining your vehicle and following the manufacturer's guidelines for servicing can help avoid or delay the need for expensive repairs. To make it easier on your wallet, USAA has ways to save money on ongoing vehicle maintenance (Opens in New Window).

To prevent trips to the mechanic from disrupting your cash flow, financial experts recommend maintaining an emergency fund equal to three to six months' worth of your fixed living expenses. Factor what car costs you pay regularly into your emergency fund savings.

Safety features

For some, the urge to replace a functioning vehicle can be traced to a desire to exhibit a successful lifestyle. For others, it's as simple as the overwhelming lure of that new-car smell.

Then there are those eager to upgrade to a vehicle with the latest generation of safety features.

There was a time when the mere presence of an air bag was innovative. These days, the device is standard equipment and located in multiple positions inside the vehicle. In addition to the evolution of air bags, there's been a renaissance in the development of other safety advancements, including:

  • Autonomous braking
  • Adaptive headlights, such as headlights that turn to look into curves
  • Backup cameras and sensors
  • Blind-spot monitoring
  • Automated parking
  • Lane-departure warnings

Some of these features can lower your total cost of ownership by qualifying you for car insurance discounts. You don't need to buy a new vehicle to benefit. Depending on the age of your car or truck, replacing it with a model that's a few years newer may provide a safer driving experience.

Deep down, you may want to buy a new car for its stylish appearance. But safety can serve as your responsible excuse for heading to the dealer showroom.

Crunch the numbers

Using a spreadsheet or the back of a napkin, compare the numbers for a new car purchase versus keeping the car you have. Consider the total costs of a new car. Figure out what a car payment will look like with our car affordability calculator. Compare quotes for insurance, vehicle registration, maintenance and fuel costs. A new car may be exciting, but it shouldn't cause your overall financial situation to break down.

If you decide to find something new, get started with our car buying guide.

Consider a USAA Federal Savings Bank auto loan

If you decide to buy, find out how USAA Federal Savings Bank can help you finance your next vehicle.