Do you repair or sell car? It might just be time to ask the question with your car being in and out of the repair shop. Do you keep putting money into it in the hopes that it won't break down again? Or should you just sell it and have the money as downpayment for a new car? You have to make up your mind and it’s often not an easy decision to make. This article aims to help you with that.
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With some pros and cons, a little bit of math, practical knowledge on car repairs and some common sense we will help you arrive at the most sensible decision. Let’s get through things step by step and get you back on track either with a full commitment to keep repairing or with a new ride.
Repair or Sell Car: Let’s Do the Math
Should I repair or sell car? Before we get into the figures, it's crucial to remember that when it comes to car repairs, there's usually a range. As a result, the math can only tell you so much, such as whether you repair or sell car. Other considerations, such as the frequency of repairs and the amount you owe on your car, are also taken into account. Keep these things in mind when you calculate the figures.
- Know the value of your vehicle.
You can always use Edmunds or Kelley Blue Book as reliable resources to help you estimate the value of your car. For example, let’s say the value is estimated at $6,000. With the estimated repairs at $1,000, the value is up to $7,000. But this will not always be the case since the overall condition of your car and type of repair will still need to be taken into account. Your trusted mechanic may be able to guide you evaluate how much the repairs will add value to your vehicle.
- Know the extent and the value of the repairs
- Shop around for the best repair quote. Accepting the first quote you're given is a bad idea. Get a preliminary diagnosis from a reputable dealership or a larger mechanic shop, but don't assume their pricing is the final price. The majority of your costs will most likely be labor rather than parts. And it's nearly always more expensive in larger, more established stores. So ask friends where they go for reliable repair work. Ask around for the best offers and for discounts you might be able to avail.
- Are there repair works that you can do competently yourself then do it. A lot of reliable resources online offer helpful guides on some simple car repair DIY projects.
- Ask a reliable mechanic about estimated repair costs that are urgent and repairs that can wait. Important safety features like brakes, tires, and timing belts should not be overlooked. However, you can get by for a while without automated windows.
- Make the budget after your consultation with the mechanic. Get the picture of the lowered repair price and compare it to the value of your car. Then you can ask yourself what you want to do. Is it really worth it to keep your car and keep doing the repairs?
Almost always, repairing a car is less expensive than buying a new one. Although replacing a blown motor or a malfunctioning transmission at a dealership can cost between $3,000 and $7,000, such repairs are still less expensive than buying a new car.
That $3,000 or $7,000 down payment for a new car would be great, but you also have to think about the monthly payments. Also keep in mind the insurance and registration fees which will be obviously higher on a new car. You might be able to find a used car for that amount, but keep in mind that another used car might come with its own set of issues. Here are some of the numbers to keep in mind when deciding to repair or sell car.
Repair or Sell Car: Is it worth repairing my car before selling?
Putting a little money into enhancing its condition before putting it on the market will pay off many times over. Part of it is purely aesthetic. If a potential buyer has a negative first impression, it reflects poorly on the state of the vehicle's more vital components, such as the engine and transmission.
True, your automobile isn't brand new, so you don't have to exhibit it in showroom condition, but there are a few things that will give potential purchasers confidence. There are a few things to bear in mind if you don't want them to flee.
Before selling your use car at least repair the windshield cracks and cosmetic flaws like dents and scratches. Replace balding or worn tires and fix those squeaky brakes. If the levels of the various fluids kept in your engine compartment are too dirty to read, it should be washed off. Check the engine hoses and wiring for damage and replace any that are ripped or damaged. If the air filter is clogged, it should be replaced too.
Also do easy and inexpensive repairs like spark plug repairs, get an oil change and have the interior of the vehicle deep clean. All of these are well worth doing to have your used car selling in no time.
Repair or Sell Car: When should you not repair your car?
Not having to make a car payment every month is one of life's simple pleasures. Only payment for fuel, insurance, and repairs are expected. But, over time, such repairs start to mount up, with even ordinary maintenance costing hundreds of dollars. Your vehicle no longer appears to be as dependable as it once was. Is it time to retire your vehicle and replace it with a new one, or should you keep it for the long haul?
According to Edmunds, an automotive site, and Consumer Reports, a product review site, it's time to break up with your automobile when repair expenditures exceed the vehicle's value or one year's worth of monthly payments on a replacement.
It may appear that there is a narrow line between when your old, well-loved car is costing you more money than a new one, but the decision is simple. Part of it is mathematics, and part of it is simply looking at your specific circumstance carefully. In the end, those criteria should determine whether you should buy a new (or new to you) car or remain with your tried-and-true ride.
Repair or Sell Car: Why Choose to Repair than Sell
Buying a new vehicle may appear to be a simple way to avoid a large repair bill, but it may not be the greatest financial decision depending on your circumstances. To better decide whether to repair or sell car here are some arguments for fixing your car up:
- As mentioned, the cost to repair a car is still less than buying a new one. You can perhaps purchase a used car for the amount you will have to spend on repairs, but just keep in mind that another used car could also mean an unfamiliar car with its own set of issues.
- As mentioned a new car means added cost for Insurance and registration fees.
- In the first year, a new car normally loses around 22% of its value. Your car has already suffered a hit in terms of depreciation.
- Remember that you are selling the car because it has problems. It is prohibited to sell an unroadworthy car unless the buyer intends to use it for repairs or spare components. If the customer expresses their goals to you and you neglect to disclose that the car is not fit for their purposes, you may be accused of deceiving them.
For example, if the customer stated that they required a car for frequent lengthy road trips, it may be argued that you misled them if you knew the vehicle was unfit for the purpose. If the driver never indicated their objective and you failed to warn them that the car could travel vast distances, they will have a tough time proving that you intentionally deceived them.
Similarly, if the vehicle breaks down a few days after the buyer drives it away, they must show that it was unroadworthy when they bought it.
- You only need to drive the vehicle a bit more. Let's imagine you planned to buy a new car in a year or two, but it broke down sooner than you anticipated. Repairing it immediately will keep you on the road and prevent you from buying a new car on the spur of the moment. It will also provide you with more time to save and organize your finances.
- Another important matter to consider when deciding to repair or sell car is the car’s sentimental value. It may have been your first car, a present from a loved one, or a long-awaited dream car. Buying a new car might imply parting with an old buddy for you. This might not be the most compelling case for repairing it, but it's a valid one.
How much should you spend on car repairs?
It's vital to keep in mind that auto maintenance costs are ongoing, as your vehicle will be serviced every few months. We recommend saving aside at least $100 per month for automobile maintenance (this does not include petrol, insurance, or other expenses).
Repair or Sell Car: Why You Should Choose to Sell
- You don't want to be concerned about breakdowns in the future. Cars that are more than ten years old can be unpredictable. Repairing a single problem on an older vehicle does not guarantee that another item or system will not fail. If you buy a new car, the warranty guarantees that you'll have at least three years (and frequently much longer) before having to pay for major repairs. Even purchasing a more dependable used car, such as a certified pre-owned vehicle, might provide some peace of mind.
- The repairs are not getting you anywhere and are starting to cause you to get late or even go absent in your school or work. And the stress is just not worth it. A car that is on the verge of crashing into the ground can keep you awake at night. It's preferable to sell your car on your own terms rather than waiting for it to break down at the worst possible time.
- You're looking for something more secure. The car frequently leaves you stranded, potentially putting you in danger. When your car has reached this point then it’s best to sell, even to buyers of junk cars like CashCarsBuyer. You will definitely get your car’s best worth to add to your downpayment for a new safer car.
- You want a car with modern safety features that are standard in new cars. Automatic emergency braking, backup cameras, and blind-spot monitoring are becoming more common in new vehicles.
- Again, you can sell your car with all its downside to a buyer who knows what he or she will be taking on. Either they are more expert car enthusiasts or have the time and money for repairs with more passion for the car make and model that you have.
There are things you can take to prevent or avoid costly repairs if you haven't yet had to make the difficult decision to repair or sell car. To avoid difficulties and breakdowns, have your new car serviced at the appropriate intervals. Learn about the recommended service intervals for your car by using our maintenance guide.
Maintaining an older vehicle necessitates paying special attention to items that frequently fail. As a less expensive alternative to a dealership service center, we recommend finding a competent, dependable local mechanic.
If you're having problems with your car and aren't sure if they'll become worse, check for assistance on message boards and forums for your car's make and model. Others have most likely traveled this path before you. You can get a sneak peek of the issues that will arise as your car piles on the miles.