(Updated on February 12, 2021)
When you purchase a new vehicle, it is usually tempting to immediately do away with your old one. Maybe you’d like the cash you could get by turning it in for parts or selling it to someone else.
Maybe you’ve just finished binge watching Tidying Up with Marie Kondo and you’re just set on getting rid of an older car that will no longer bring you daily joy.
Whatever the case though, before you sell, cart off, or otherwise get rid of your out-of-use automobile, you may want to consider these potential benefits to hanging onto it.
Related: How to Properly Store a Car
Top Reasons to Keep Your Old Car
1) It Can Turn Into a Hobby
While you may no longer drive your old car, it can still serve a very practical purpose, in that you can make a hobby out of maintaining or even improving it over time. All you really need to get started is a basic understanding of regular maintenance techniques.
We covered some such techniques in a past article, and while some are more relevant to in-use vehicles, others (like washing the interior or replacing windshield wipers) can certainly be of use.
Naturally, developing this sort of hobby can also serve as legitimate education that you might be able to put to use should you have a problem with your new car. It never hurts to be handy when it comes to automobiles, and as they say, practice makes perfect.
So if you do decide to keep your old car around as a sort of pet project, you may actually pick up skills and insights that come in handy one day.
2) You Have It as a Backup, In a Pinch
On the off chance something happens to your new vehicle, you’ll be quite glad to have something else handy (particularly if you’ve been maintaining it regularly per our first suggestion).
Otherwise, you may be subjected to unreliable forms of transit, like city buses or expensive ride-share services that you’d rather avoid. If it’s a long-term issue, you may even need to rent a car, which gets expensive very quickly.
3) It Could Be Used as Collateral For a Financial Loan
Surprisingly enough, your old vehicle may end up being a major financial asset, in a roundabout sort of way. Specifically, it may serve as collateral for a loan one day, which can be a lifesaver if a financial emergency strikes.
In response to a reader question about borrowing against a car’s value, a write-up at Bankrate clarified that in order to use a car as collateral, you need to have equity in it. However, that’s not as restrictive as it may sound; you don’t necessarily have to have full equity (though with an older car, you may well own it outright).
There are also some interesting specifics to loans against cars depending on where you are. For interest, title loans in New York can be somewhat restrictive, with high interest rates and quick turnarounds expected for payments.
By contrast, title loans in Ohio allow you to use your vehicle as collateral even if you continue to drive it, which is a unique and lenient structure you might not expect to find as you look about for the best deals.
Whatever the specifics may be, using a car to obtain a loan can be all the more appealing if you can do it with a car you don’t depend on every day.
4) Scrapping an Old Car Has Environmental Effects
To put it bluntly, scrapping an old vehicle negatively effects the environment. While a significant portion of a modern car can be recycled, things like acidic battery fluid and plastics stay in the environment and have a detrimental impact.
This is not to say the car can just stay in your garage for eternity without ever having an effect. But it’s still something worth keeping in mind.
Particularly today, when research indicates more people care about the environment than in years past, we’re betting this is a point that will resonate with a lot of people who are considering getting new cars.
5) Keeping It in the Family is Cost Effective
If you happen to have children who are driving, or you have another “hand-me-down” option, you may want to consider fixing up your old car as much as you can and then offering it as a gift.
This is a far more cost-effective option than purchasing a brand new car for the relative or friend in question, and can be a great way to make use of an old car you’ve kept around.