Sometimes older vehicles need major repair. A transmission, engine or possibly large air conditioner repair. Often when this occurs the first thought is, how much is the vehicle worth? The answer may have less to do with a book-value and far more to do with your needs.
Should the vehicle be replaced are should it be repaired? I think there are several factors that need to be considered.
Do you like the vehicle and does it meet your needs?
Are there other thing wrong with the vehicle?
What will it cost for alternate transportation?
I feel if a vehicle does not meet a person’s needs, investing a lot in repair does not make sense. This may be the case when a larger/smaller vehicle is needed, etc. It does not make sense to invest money into a vehicle that is not practical.
The general condition of the vehicle must also be considered. Many times I suggest we perform a good general inspection of a vehicle, before a major repair is considered. If we find other likely problems, major repair may not be justifiable.
If the vehicle meets your needs and has no other major problems you may consider the cost of alternate transportation. The book-value of a vehicle may only be $4,000. But if it serves your needs, it is actually worth what it will take to replace it. A used-replacement vehicle often cost $8,000 to $12,000 or more. Spending $3,000 to put your vehicle in good shape may simply be $5,000 to $9,000 less than the alternative.
Another way to consider it may be on a monthly basis. Three-thousand dollars divided by twenty-four months comes to $125.00 per month. There are not many vehicles that can be owned for $125.00 per month. Can the vehicle, once repaired, likely go twenty-four months without need of another major repair? If yes, this may be the least expensive option, regardless of the book-value.
A major key is to deal with a shop that you can trust. Another is a shop that can fix the vehicle right the first time. In choosing an auto repair shop two factors are all important. Are they reputable and are they competent. If the answer is yes to both, chances are the experience will be a good one. Large repairs are often a wise investment, as long as all factors are considered.
