For most people the car is a necessity. This is a simple economic fact. You should calculate the cost of getting to and from all the places you need to go in an average week. If it is cheaper to use your car than public transport then your vehicle is a necessity
Unfortunately your car is a mechanical object and even the best pieces of equipment will fail from time to time. It’s usually when it’s most inconvenient.
You’ll be left trying to decide whether it is worth replacing the car or repairing it. Fortunately this guide can help you!
Find A Mechanic
The first step in your decision should be to find a reliable mechanic. It is best to speak to your family and friends in order to find one that you can trust.
This is important as you need to be confident that the advice and price you are being given is fair and accurate.
Price The Repair
When your car breaks down you need to get it to the garage you have chosen. They should supply you with a breakdown of what is wrong with your vehicle and the cost of repairing it.
It is important that you trust your mechanic as it is not always easy to get a second quote if the car is not running.
Value Your Car
You now need to consider the value of your vehicle.
This is not the price you paid for your car. It will have depreciated even if you’ve only had the vehicle for a short while.
It is best to look online at what prices similar vehicles are selling for. This will give you a fairly accurate guide to the price.
You need to establish two values; the value of the car if it was running properly and the value if you sold it not working.
Compare The Values
If your car is worth $2,000 and the repair is going to be in excess of this then it is probably not worth going ahead with the repair.
However, if the cost of the repair plus the value of the car at the moment is less than the value of it running then the repair is worthwhile.
This is fairly simple math. But, there is a complication:
Consider The Inconvenience
If the two figures are close then you need to consider how much you would be willing to spend on a new vehicle and how inconvenient it will be if you don’t have a car.
Your answer in this scenario will depend on how much of a necessity the car is and your current financial situation.
It can take time to find another vehicle and it may have its own issues. This can easily make it cost you more than the repair bill; without putting you in a significantly better position.
If the cost of the repair places your investment at just over the value of the car then it may well be worth repairing. They do say that it’s better the devil you know!