Deciding when to repair or replace your aging vehicle can be a tough call. You want to get the most out of your car, but at a certain point, the repair costs start to outweigh the benefits of keeping it on the road. Automotive experts at Edmunds and Consumer Reports offer some guidance on when it’s time to break up with your car.
Repair Costs Exceed the Vehicle’s Value
One key indicator that it’s time to consider a replacement is when the repair costs start to exceed the vehicle’s value. Edmunds suggests that if a single repair will cost more than half the value of your car, it’s probably not worth fixing. At that point, you’re pouring money into a depreciating asset and may be better off investing in a newer, more reliable vehicle.
Repair Costs Equal One Year’s Worth of Monthly Payments
Another rule of thumb is to compare the repair costs to what you’d be paying for a replacement vehicle. If the repair bill equals or exceeds one year’s worth of monthly payments on a new car, it’s time to start shopping. Consumer Reports notes that at this point, you’re essentially paying for a new car in repair costs, so it makes sense to get a fresh start with a more dependable ride.
Of course, these are just general guidelines, and your decision should also take into account factors like the car’s overall condition, your budget, and your transportation needs. If you have a reliable vehicle that’s paid off and you plan to keep it for a while, it may be worth investing in some repairs to extend its life. But if you’re constantly taking it to the shop and the costs are adding up, it’s probably time to move on.