Replace or Repair? When to Ditch Your Old Vehicle

To replace or repair?
“Is it time to repair or replace my vehicle?” It’s a tricky question. You can’t predict the future, so it’s hard to base your decision on limited information. However, you can make an informed decision by considering a few factors that have helped many car owners who were in your same situation.

Factors to consider when asking, “Is it time to repair or replace my vehicle?”

• When does it start costing you money?
• What is the cost and what are your finances?
• Is the reliability impacting your daily life?
• What is your safety gap (Gap in safety features from your current ride to the new ones)?
• What is your technology gap?

When does it start costing you money?
While each vehicle is different, these are usually the most expensive repairs according to compare.com. Items are on average and include both parts and labor.

• Repairing transmission assembly: $5,400
• Replacing transmission assembly: $6,400
• Replacing engine: $5,500
• Replacing hybrid battery and reprogramming engine control: $4,140

This is when car repair starts getting expensive. When considering “repair or replace my vehicle” these are numbers you’ll want to crunch before deciding.

What is the cost and what are your finances?
Experts have a rule of thumb: If the repair bill is less than half of the current value of your vehicle, you should probably fix it. If the bill exceeds half the value of your car, you should probably buy a new one. If the repair bill costs more than the entire cost of your car … well, you know the answer!

When you ask, “Should I repair or replace my vehicle?” how did experts come up with this calculation?

Here’s another way to view the situation. Count up your repair bill(s) and calculate how much it is costing you per month. Is the amount more or less than what a new car payment would be?

Another tip is to look up the model, make, and year of your car on the internet and read forums of current and past owners of your car. What patterns do you notice? Were owners able to make a repair and get a couple more years out of their cars? Or, did they reach a tipping point where the expensive repair bills became a regular occurrence and things pretty much went downhill from there?

Your FICO score is another factor. It will determine your interest rate on your car loan and car insurance. This means your monthly payment could vary and change the math when you calculate whether repairing or buying would be less expensive.

Is the reliability impacting your daily life?
Your car breaks down and you’re late to work again. Your co-workers had to pick up the slack. Your boss isn’t happy. You wonder if you’ll be scheduled for less hours or even lose your job. You’re late to pick up the kids from childcare because the car’s in the shop and you’re charged a penalty.

While these aren’t direct car costs they could affect your income and then your ability to pay for car-related expenses. If your car’s unreliability is giving you a reputation as being unreliable and negatively affecting your life, it might be time for a new car.

What is your safety gap (Gap in safety features from your current ride to the new ones)?
Cars have come a long way – especially recently – when it comes to safety. Nowadays car bodies are designed to “crinkle” to lessen the damage should there be a crash. Airbags are improved. And technology helps us drive safer too.

It’s hard to put a number value on safety features, but it’s something to weigh when making your decision.

What is your technology gap?
While added technology is more expensive, it’s wise to have. If technology can prevent a crash, it will save you from car insurance hikes and car repair deductibles. Not to mention it could prevent an injury that could put a family member out of work.

New cars offer safety features that didn’t exist even a short time ago. These features make it safer to back out of your driveway, park in tight spaces, and reflexively brake to prevent a crash.

In a nutshell
When asking, “Do I need to repair or replace my vehicle?” only you can decide what’s right for your situation. Ask yourself which option is least expensive: monthly payments on repair bills or car or lease payments. Also be sure to consider safety features and peace of mind in your calculation.

Contact us
If you ask yourself, “Do I need to repair or replace my vehicle?” and your final decision is, “Yes, it’s about time for a new ride!” we’re here to guide you through the car-buying process.

Give us a call or stop in today to find your reliable ride that fits your needs and budget. We look forward to seeing you!

Links:

At what point does car maintenance become more expensive than it’s worth?

https://lifehacker.com/should-i-repair-or-just-replace-my-old-car-484335393

https://www.carfax.com/blog/repair-or-replace-my-car

https://www.edmunds.com/car-care/fix-up-or-trade-up.html

https://www.compare.com/auto-insurance/guides/should-i-repair-or-replace-car

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