We’ve all been faced with a high car repair bill. You know, the ones that you hoped would be a minor, easy fix that turns into a costly major one. This can happen even if you’ve taken great care of your vehicle. Eventually, needing a car repair is inevitable, usually due to excessive wear or time. Hoses crack, electrical parts start to have intermittent problems, brake rotors wear out – the list goes on and on. These repairs typically begin to take place between 90,000 and 120,000 miles. So, how do you know if it’s time to trade in your vehicle or repair it? Read on for some tips to help you make an informed decision.
Is a Car Repair the Best Choice?
Will you be better off having your car fixed, or is it time to trade it in? That depends on your budget and other factors. Following are some reasons to have your vehicle repaired:
- In most cases, it’s less expensive to repair a car than to trade it in for a new one. Although severe repair problems like a failed transmission or an engine replacement can be expensive, the repairs still won’t cost as much as buying a different car. If you buy a new car, you’ll end up with monthly payments, and if you buy a used one, it will come with its own set of unknown issues that can lead to expensive car repairs.
- If you buy a newer car, the insurance and registration fees are going to be higher.
- New cars usually lose an estimated 22% of their value in the first year. Obviously in the case of car and chip shortages, this isn’t the case. However, there is a good chance your current vehicle has already taken the depreciation hit.
- You need to keep the car for a while longer for financial reasons. Opting for repairs will give you more time to save up for the right vehicle. Repairing the car now will not only help you stay on budget, but it will also keep you from making a rash decision on a new car purchase.
- You are sentimentally attached to your car. Maybe it was your dream car, given to you by a loved one, or your first car. In these cases, trading it in means you’d have to give it up.
When to Consider Trading in Your Car
In some cases, trading in your car might be best. Here are a few of those cases:
- The repair involved will cost over half of the vehicle’s value.
- After the last repair, you decided that you wouldn’t pour more money into your old car.
- The car has left you stranded too many times, making you late for work and other appointments.
It’s essential to keep in mind that to get a worthwhile price for your trade-in, you’ll need to have it fixed before you trade it in.
There isn’t any clear-cut answer to whether you should trade-in or repair your vehicle, but the information provided here will help you make a more informed decision. Contact us today if you want our opinion on whether it’s best to trade in or repair your specific vehicle.