Why Having a Car Buying Plan Matters
Hey everyone! Let’s talk about something that doesn’t always cross our minds until it’s too late—having a plan for your next car. Even if you’re planning to drive your current vehicle until the wheels fall off, at some point, you’ll need to make a move. Being prepared can make all the difference, so let’s dive into why it’s important and how to get started.
Car buying often happens out of necessity. Maybe your car breaks down, you get into an accident, or something unexpected forces you to replace your vehicle. If there’s no plan in place, you could find yourself scrambling to make a decision under pressure. Insurance companies usually give you about seven days to figure things out if they total your car—imagine the stress of having to rush into a major financial decision like that.
Just like investing money for the future, whether it’s short-term, long-term, or for a specific goal, planning ahead for a car purchase can set you up for success. When people buy a house, they plan, save for a down payment, and finance it strategically. But when it comes to cars, most people don’t think that far ahead.
If you’ve had your car for five, six, or even eight years, the first step is understanding its value. This matters whether you owe money on it or own it outright. Here’s how to do it:
Surprisingly, a lot of people don’t even know how much they owe on their car. If you’ve had a five or six-year loan and are three years in, it’s easy to lose track. Check your bank or lender account and find out the exact payoff amount. Write it down and compare it to your car’s value. This gives you a clear picture of where you stand.
Think about what you like in your current car and what you’d want in your next one.
Your lifestyle might have changed since you bought your last car. Maybe you don’t need to tow anything anymore, or perhaps road trips are more important now than they were before. Writing down your must-haves will help guide your search when the time comes.
One reason people avoid planning is because they don’t like the numbers they see. Maybe your last car was a lot cheaper, and now new models are priced higher due to inflation. Instead of avoiding it, take a look at current market prices.
If the numbers aren’t where you’d like them to be, at least you know what you’re working with. Ignoring it won’t make it cheaper later.
If your plan is to keep your car as long as possible, understanding its potential repair costs is key.
Knowing what to expect can help you prepare financially and decide whether holding onto your car makes sense.
Most people don’t want to start making payments on a new car before they have to, which is understandable. But setting aside money in a separate savings account for your next car can make things easier when the time comes.
It’s like lifting weights—you’re building financial muscle so that when it’s time to upgrade, it’s not a burden.
If your car is getting older but still holds value, trading it in before major depreciation hits might be a smart move.
Either way, planning ahead gives you options rather than forcing a rushed decision.
If your car is approaching that eight-year mark (or older), take a look at your options now. Knowing your car’s value, potential repair costs, and replacement costs will save you from stress later. If you ever need guidance, I’m here to help.
I’m Ronnie Haskins—reach out anytime, and let’s make sure your next car purchase is a smart and stress-free one!