We see it every day. A client brings in a vehicle that turns out to be large dollar repair. Then our advisors are asked the question “Is the car worth fixing?”
There is not one answer to the question. Part of being a great advisor is knowing the needs and situation of our clients. When asked the above question, I usually ask “What would you replace this vehicle with?”.
It comes down to a math problem. The cost to repair your vehicle versus the cost of getting a replacement vehicle. Let’s brake down each option.
Option 1 – Repair your 2010 Honda Accord (these values are not quotes, they are for the sake of an example only)
Timing belt and water pump service $1000
New transmission $3000
Replace the radiator because of a leak $450
Perform various fluid services $390
This gives you a total of $4840
Option 2 – Purchase another Honda Accord
A 2010 Accord costs $13,000 plus any repairs that may need to be done.
A new 2023 Accord costs $30,000.
The other cost that most folks forget to include is what can you sell the vehicle for when you are done. This is where depreciation comes into the picture. A new car will depreciate MUCH faster than a used car.
Typically, clients find out that the cost to repair their vehicle is much more cost effective when compared to buying another vehicle. In fact, according to an article from Edmunds and CBS News, , the cost to repair your vehicle that is 10 years old is only about $500 per year. When compared to a car payment, this is about the same as a single monthly car payment.
How can you keep repair bills low?
Maintenance is the key. Folks who maintain their vehicles, keep their fluids clean and repair oil leaks before they become severe tend to have much lower repair bills overall. Pay a little now or pay more later.
Keep up on those oil changes. If you have one take away from this article, it is this. Stay in your 3,000 mile oil change interval (4,000 if your vehicle uses synthetic oil). Same Day’s goal is to get your vehicle to 200,000 miles or beyond and most vehicles can get there without replacing the engine if you keep up on your oil changes.
Do you need advice about your aging vehicle? Always feel free to call and speak to one of our advisors. We are here to answer your questions.