Should you replace your car or repair it?

Should you replace your car or repair it?

Your car is not running again and you have to two it to the shop. The worse news is when the mechanic tells you how much the repair will cost. And there are times that you keep asking yourself should you replace your old car or repair it? Well, You should and must replace it if your car is too old and repair costs more than your budget and also the value of the car. But you should also take the cost of buying a new car into consideration.

Now, you are in this situation and facing a costly repair. Should you fix the car or sell the car as-is and get a new one? These points can help you out to make your decision.

Should you replace your car or repair it?

Reasons to replace your scrap car with a new car

  • Repair’s cost is more than the car’s market value. 

This is the first reason that you should give up on your old car. If the repair’s cost is more than the current value of the car, it doesn’t make sense to fix it. Especially if your car is old! Even if you repair the car, soon you will have to pay again for periodical maintenance.

  • It is not safe to drive anymore.

Safety always comes first! Nothing is more important than a human’s life. You must replace your car if it has safety issues. A car without airbags still runs but it is not safe to drive. It is also not safe to drive a car that breaks down frequently. Any mechanical issue while driving on highways can lead to irreparable damages.

Reasons to repair your car

  • You can not afford the new car. 

Even if the cost of repairs is more than the value of your car but you may not afford a brand new one. The cost of down payment, monthly insurance, and lease payment is also quite expensive. If you don’t have enough budget to buy a new car, repairing your car is a better option.

  • You are able to repair your car.

Auto repair rates vary for different mechanical issues, rates ranging from as low as $20 to as high as $200 per hour. If you know how to repair your car yourself you would save a lot by just not paying the replacement or repair fees. Worst case scenario you have to replace a part and you must only pay for the new part. In this case, you can also keep the car and use it until its very last days.

Overall, it is hard to let go of the old car that you loved for a while. Plus everybody’s situation is different. If your job is depending on the car. If your car is paid off or you have a lien on it and many other conditions. When your car is is completely dead you can sell it to scrapyards or you can salvage some parts to make more money out of your car and put that money into your new car’s down payment. Sometimes you can’t afford a brand new car but you can go for more recent models and used ones.