The average age of a car in the Middle East is 5.1 years which is almost half of Western countries. It is about 11.5 years in Western countries according to a study conducted by carmudi.com. However, there are still motorists who have been driving old cars in the UAE. If you are looking to sell your car for a new pair of wheels, below are reasons which will make you reconsider.
It simply runs
Some people hold on to their cars even if it’s been there for two decades because it simply works. They don’t have enough reasons to invest their hard earned money for something they already have. Yes, without doubt it may not be a head-turner compared to the latest generation of automobiles, but it gets us from point A to point B.
Affordable motor insurance
New cars not only cost more but also their car insurance does. To make sure you don’t have to pay more in case of an accident, getting comprehensive insurance is another financial hassle you need to consider. Comprehensive insurance costs more and is usually preferred for new cars, compared to third party insurance.
More than just monetary value
For some people a car is not just a mode of transport but something much more. If cars are maintained regularly it can stay in perfect condition for long period of time. Certain cars have been with people for several decades passed on from one generation to the other, which is why it’s of more value to the car owner.
If you have another car loan
If you own two cars out of which one car is from a bank loan, generally people hold on to the old car as long it is running perfectly. Taking on another bank loan to buy a new car might not be the best financial decision. Minor repairs and regular checkups/servicing can prolong the life of your old vehicle. This cost will be minimal compared to buying a new car. If you have been driving your car for more than 10 years it means its value has already been depreciated more than 50% which means, there is no substantial resale value.
For now, sticking to your used car may be the best option as it can be reliable and safest financial option. A purchase of a new car should only be considered when you have a secured financial future and enough investment set aside to support your increased cost.