It's fairly common for people who own their vehicles outright to only carry liability insurance on their cars. Lienholders usually require full coverage so once you've finally paid off your note, you may decide to save money by dropping the full coverage and opting for the minimum limit instead. The problem comes in when you get into an accident or the car is subject to natural perils. The damage could be so extensive that you don't know if you'll ever get it back on the road. If your vehicle is badly damaged and you're trying to find a solution, junking the car for cash could be the best choice.
The Repair Fees Might Not Be Worth It
Your first thought may be to have the car repaired. Various systems in the car no longer operate correctly and there could also be corresponding damage to the body. This may work when the costs aren't too expensive. However, you have to ask yourself one question: "Is it worth it?"
For example, if your car is seven years old and the mechanic tells you that it's going to cost north of $5,000 dollars to take care of the damage, the return on investment (ROI) might not balance out. The average lifespan of the modern car is approximately eight years. If it's a well-built, properly maintained vehicle you may be able to stretch it out a little further. But, will you be able to make the most of the $5,000 dollars that you've sunk into the automobile? Or would it be better for you to use the money in a different way?
Get Cash For A Down Payment
Instead of wasting your hard-earned cash on a repair bill, it's most likely better to use the funds as a down payment. When you junk your car for cash, the junking company will offer you a set amount of money to relieve you of your vehicle. The junker meets you at your home or other designated location, hands you the cash, and tows the vehicle away. If you combine the amount that you would have spent on repairs with the money you were given for junking, you could possibly have enough to put down on a great new vehicle.
Put your money to use the right way. Call a junking company to hear how much money for your junk car they'll offer you to see if the scales tip in your favor.
After struggling for years with a terrible car, I knew that it wasn't going to last another season. It was beat up, worn out, and completely unreliable. Instead of giving up on the car, I decided to talk with a friend of mine who was really great with vehicles. We worked together to take care of things, and we even found some great prices on auto parts to take care of business. When we were finished, the car ran like new, and I was really impressed with the results. If you like learning more about cars, read this blog to learn about everything from auto parts to routine repairs.