How to Repair or Replace an Old Car Eight Things You Need to Know

It’s everyone’s worst nightmare come true when the car breaks down. Now, it’s time to decide whether to repair or replace the old car. Do you think your car is worth spending money on or are your profits better spent? That’s the question we hope to answer.

If you have been asking – should I repair or just replace my old car, our guide should help. This guide will help you understand when it is best to repair your car and when it's time for you to say goodbye. 

Four Reasons to Fix a Broken Car

1. Cheaper

It is usually cheaper to fix an older car than it is to buy a new one. This point isn’t claiming that the car is worth the repairs; simply that less money will usually be spent repairing than buying. There are exceptions to this rule.

A blown or damaged transmission, for example, could cost $3,000 to repair if it is taken to the dealer. You could get another vehicle for this price, but it probably won’t be reliable. The $3,000 could be used to pay down a vehicle.

It is worthwhile to repair if the costs of repairs are less than the price you'd spend on a newer model. This is especially true if the vehicle’s value is also worth more than what you are spending. 

2. No Depreciation

A new vehicle will lose 20-30 percent in value within the first year. That’s a lot of money you are throwing away when you purchase a new vehicle.

However, you aren’t going to deal with this level of depreciation on your existing vehicle. You might see your vehicle depreciating by 15 percent each year depending on which model you have. This can help to maintain a good resale price. 

3. You Can’t Buy a New Car

If it simply isn’t the right time for a new car, you should consider repairing the old one. Maybe you were in the middle of saving up for a vehicle or you just don’t have the extra cash right now. Repairing an old car can give you more time to buy a new one.

If putting out $300 today helps you reach your financial goals in a year, it’s a good investment. If you need to save $3,000, it might be a good idea to reconsider this goal. 

4. Sentimental Attachment

You may be reluctant to sell your car if you feel emotionally attached to it. You may end up spending more on your car to maintain it than its value. 

Whether it’s your first vehicle or a special gift from a loved one, you want to cherish it as long as you can. You might end up with the car that you have been saving so hard for. You don't have to give up the car. 

4 Why you should buy a car new

1. Peace of Mind is essential

Don't worry about your vehicle breaking down. You don't have any guarantees with old cars. 

You could be left stranded again even if the problem is fixed. A new vehicle comes with a minimum of a 3-year warranty. Some pre-owned vehicles will come with a warranty. With these protections in place, you don’t have to fret about any more major repairs, at least for a short time. 

Related: What to look for before buying a used car

2. Are you tired of repairs?

Do you get tired of going to the mechanic every day? If the local auto repair shop has come to know you, it’s possible you have been spending too much time there.

You may also find that not every problem is fixed correctly the first time. This can lead to more downtime when you bring your vehicle in. You should evaluate how much time your mechanic spends on you and decide if it could be more productive. It might be time to upgrade.

3. You are looking for something safer

Older vehicles might have less safety equipment. Although this might have been fine if everything worked perfectly, would you want to spend money on older vehicles that lack the latest technology instead?

For better road safety, a new car may come with blind spot monitoring, automatic emergency brakes and backup cameras. This peace of mind is worth the price?

4. The cost of a product is more important than its value

What is the estimated cost to fix your vehicle? You might consider not investing more money in your vehicle if you get an estimate of $3,000 but it is worth only $1,500.

Websites like Kelley Blue Book will give you an estimate of the car's worth. Keep in mind that even if your car isn't running, the vehicle's value will be lower. This amount can be compared to the costs of repairs in order to decide if it is worth investing more.

RELATED : 15 questions you should ask before purchasing a second-hand car

Are You Ready to Get a Car New?

If you honestly evaluate your situation, you will be able to decide if buying a new car is right for you. Below are some points to keep in mind.

• It is becoming increasingly costly to repair things.
• You are left stranded by your car, which can make you late or put you at risk.
• It costs much more to repair a vehicle than it is worth.
• Your intention was to buy something.

How to extend the life of your car

It is not something anyone wants to do. It is possible to make your vehicle last longer with a bit of diligence.

You should follow the manufacturer's recommended maintenance schedule. Your vehicle's lifespan will be extended by regularly changing its oil, replacing spark plugs, and installing new filters.