Over here, we’re all about frugality – it’s the name of our game. But sometimes, life demands big expenses. We can go about putting them off for as long as possible, but sometimes nickel and diming to the 10^th degree does more harm than good. This is especially true in the case of the new car conundrum.

Here’s a common example: You don’t want to blow your budget on a new car, but your current set of wheels has been giving you too much trouble. You keep taking it for repair after repair – or, worse yet, you ignore the problem altogether – and one day, WHAM. Your catalytic converter is busted, you’re left with not much more than a pile of metal, wondering how to sell a car that’s barely functional. Now you need to dig into your personal savings account to purchase a new vehicle rather than applying the money from the sale of your old car to a new one.

Don’t let your situation get to this point! You have to know when it’s time to bite the bullet and upgrade to a new vehicle before you’re further in the whole. Not sure when to stop the bleeding? Look out for these tell-tale signs!

Is it new-car envy?

Before we go through a list of qualifications that might suggest you need an upgrade, let’s just clear this one out of the way. Make sure the reason that you’re considering a new ride is not merely “just because”. Maybe you’re tired of driving around in the same set of wheels you’ve been in since you were 15, but if there’s nothing wrong with it, you should think twice about spending the big bucks on something you’re simply lusting after.

There’s no shame in the saving game, and depending on your make and model, there’s a high probably you can put upwards of 185,000 to 200,000 miles on it, so long as you’re diligent with routine maintenance. New brake pads on a car that’s over a decade old does not mean that it’s doomed and time to hit the car dealership.

Also, you might watch your friends or colleagues invest in new cars and feel tempted to do the same – just wait until you hear them complain about their monthly car payment and why they can’t go out to dinner without breaking their budget.

Is the check engine light on?

The first time your check engine light comes on, don’t panic. This is perfectly normal, as it probably indicates that your car is due for routine maintenance. But if every bump in the road causes warning lights to appear and disappear, don’t consider it some sort of neon accident. There’s probably something serious going on, and you should try to get a new car before a larger problem occurs.

Did it lose fuel economy?

If you’re on a first-name basis with the cashier at the gas station, you might consider an upgrade. Many older models are serious gas-guzzlers, whereas more recent makes get much better MPG. You’d have to invest a bit upfront, but you could save yourself plenty of money at the tank in the long run.

How much do repairs cost?

Never – repeat, never – pay more in repairs than the value of the car. If you get a quote from a mechanic for costly repair work, double check the value of your car prior to signing off on service.

How bad is the rust?

A little bit of rust may be acceptable, especially in cold regions where salt is poured over icy, snowy roads (your tires kick up the salt, which then corrodes the metal!). But if you have a lot of rust build up, you might want to get the car off your hands. It spreads quickly and can then ruin the integrity of your vehicle. A new paint job might be able to conceal the unsightliness, but a weak door frame won’t be able to protect you in the event of an accident. This issue is as much of a safety hazard as an aesthetic preference.

Takeaway

If you think that any of these things apply to you, it might be time to ditch the duct tape and upgrade to a new car. Remember, it’s better to buy used to get the most out of your investment!