Which is Best: Replace or Repair Your Car?
These days, many of us are finding that the economy has us in a real tailspin as we try to determine which choice is the better financial option:
- Buying a new car
- Repairing the car we already have
If you’ve been trying to decide between buying a new car and repairing the one that’s already in your driveway, the following tips could help make the decision a little easier:
• Compare Costs
In the long run, it’s generally less expensive to repair the car you already have, rather than to purchase a brand new – or newer used vehicle.
Consider this: When financing even a $1,500 repair, your payments will be lower (or similar payments for a shorter period of time), than those incurred when purchasing a newer vehicle.
• The 50/50 Rule
This is my tipping point and the one I use most. When receiving the estimate of a major vehicle repair, I always consider a very simple 50/50 rule. If the cost of the repair approaches or exceeds 50 percent of the value of the vehicle, it’s a good time to take matters more seriously and consider getting a newer vehicle.
• Maintenance and Reliability
By following the manufacturer’s maintenance recommendations, it can increase the life span of your vehicle. If you’ve maintained your vehicle regularly and have used the same auto repair shop time after time, then I’ll bet it’s a good indication that you know your car inside and out and this truly is the best way to know what condition your car is in. When the repair shop also knows the service history of your car, you can ask the mechanic or service technician for advice on when the car might possibly need major repairs.
• Lifestyle
A change in your lifestyle can certainly be a deciding factor when determining whether to keep the car you already have or buy a new car that better meets your needs. Your daily or weekly commute, family size, new baby, any recreational use you do, or even business needs, are all worthy reasons to consider an upgrade or to purchase a newer vehicle which would be better suited to your driving needs.
• Cosmetics
The cosmetic condition of your car can potentially affect the value as well as your desire to keep that car. Take a good look at your car for signs of wear and tear, evaluating the priority of how important your car’s cosmetics are to you.
• Special Sales and Incentives
Of course, these days it really is a buyers’ market; sales, special pricing, and incentives can certainly impact and influence your decision to buy rather than repair. Some vehicles you wouldn’t normally be able afford in earlier years may now be at a price that fits well into your budget. A car that was once out of reach or which has the potential to become a valuable classic in later years might now be worth snagging at a price you can afford.
Whichever way you decide to go – to replace or repair your vehicle - choose the best option for your needs and your budget. What may be determining factors for someone else, may not be determining factors for you; only you know and understand your needs, your budget and what’s right for you.
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Remember to find a good mechanic BEFORE you have a major repair, this will save you lots of time and stress. If you already have a mechanic that you trust when a major repair is needed you will feel much better about the repair process!