Owning a car makes life more convenient, but also more expensive. One of the major dilemmas most car owners need to face is what to do when a vehicle breaks down — is repairing the vehicle better or should you just buy a new one?
If you’re asking yourself this question, here are some considerations to make:
- The Math
The first thing you need to do is get out the calculator — there’s math to be done.
Step 1: Estimate the cost of repairs.
Most auto repair shops will give you a price estimate, so this should be easy to get.
Step 2: Estimate the value of your car without repairs.
Some websites can help you value your car as is. Now let’s say your car is valued at $5,000 and the estimated cost of repairs is $1,000. With the repairs, that might bring your car’s value up to $6,000. This could be a good return on investment. But if your car is worth less, or the repairs will cost more, it may be time to consider buying a new vehicle.
- The Amount of Repairs
The scenario above was an estimate for one repair — but how often is your car needing repairs? If it’s needing to be fixed again and again, it’s likely costing you a lot of stress and possibly even work hours if you can’t get to your job because of a vehicle that’s constantly breaking down. The overall price you’re paying for the repairs might be more expensive than making payments on a new car.
Let’s say you’re getting repairs done for $1,200 every four months — a new car payment might be $300 per month, which would cost about the same, but leave you without a headache.
- The Car Itself
How old is your car and how may kilometres are on it? If it’s over 300,000, there may not be much life left in it. Are the repairs needed for a long-term fix (like replacing the brakes) or is it a recurring problem that won’t seem to go away? Or is one thing breaking after another? Adding up the lifespan of the vehicle can also help you make a decision.
The decision on whether repairing a vehicle or buying a new car is best depends largely on your budget. Can you fit payments for a new car into your budget? Or could you pay back a loan for repairs more easily?
If you make a decision to repair, you may be able to pay for the fix with a personal loan. Some lenders, like Prudent, even lend to those with bad credit or who are in bankruptcy.
If the repairs are too much, but you can’t afford a new car, you could also consider shopping for a used vehicle. They can be the best of both worlds — less repairs needed, but less expensive than buying a new car.
If you’re in the market for a new-to-you car, Prudent Value Cars can help. We offer superior, pre-owned vehicles for people with bad credit in Toronto and the GTA. Whether you’re an undischarged or discharged bankrupt, in consumer proposal, or have bruised credit, we will do our best to find a deal for you.
Learn more about Prudent by calling 1-888-852-7647 or visit www.prudentvaluecars.com.