Are you asking yourself The Big Question? – Is your car worth repairing, or is it time to replace it? It’s a tough question to answer but a good question to ask. When weighing your options of repair vs replace, here are some key points that will help you make a smart decision.
It’s important to note that everyone has different weight they will put on the numbers that you come up with. There’s not a wrong way to go… but looking at the numbers should help point you in the right direction for you.
Risk – Basic but essential point: your life is always most important. Consider how much danger you expose yourself to in your current car. If your car is requiring critical maintenance to maintain its safety, or address its safety performance, it’s definitely time to weigh the risk and check on replacing.
Compare cost – Compare the cost of maintaining your current vehicle vs buying a new one. It’s definitely not worth maintaining an old car for the cost of buying a new one. If you’re bringing your car to the mechanic every few months, you might be paying the same amount you could pay on a monthly plan for a brand new car. Or even a gently used one. So run some numbers and see how it falls out.
Current car cost – Next you should be looking at the value of your current car. If you’re considering getting a new car, trading in your old car could be the way to get there. Check the Kelly Blue Book for a preliminary estimate, then spend a little time getting some quotes from car dealers to see what your best offer is. Ideally you want your old car to get you at least a couple thousand towards your new one. Obviously, the more the better.
New car cost – Finally, you should be looking at the total you’d have to pay for a new car – whether brand new, certified, or whatever new-to-you looks like. In this total you’ll want to consider several items: 1) your annual car repair cost, 2) the estimated monthly payment of your target car, and 3) the value of your current car. (Note: This may be obvious, but you can get a cheaper monthly rate if you make a larger down payment.) If your current car could be sold to pay a significant chunk of the down payment, plus if you factor in your current monthly maintenance costs from the last point, buying new may be an easy choice.
Of course your car will always have some level of sentimental value to you. As car owners, we all experience that. Just don’t let the sentiment get in the way of making a good decision. If you analyze the numbers as this post recommends, you should be able to see whether it makes sense to repair or replace.
