Used-Car Prices Are High, So Consider Fixing the Car You Already Own
Shelling out for an expensive repair for the car you know may be more practical than paying a high price for a used car
When faced with an expensive repair for an older car you’ve owned for a while—something like an engine or transmission replacement—you might think about moving on to a newer model.
But with the average price of a used car near $30,000, it can make more sense to repair the car you already have. Better the devil you know, after all. John Ibbotson, chief technician at Consumer Reports’ Auto Test Center, says you probably know what problems exist in the car you have, while buying another one could open up a whole new can of worms.
Of course, it helps if your existing car is generally reliable (see Consumer Reports’ expert reviews and ratings). But even so, and even with regular maintenance, cars are machines. Even the best ones have problems.
To decide whether your car is worth replacing, CR recommends doing a personal cost-benefit analysis: Divide the cost of the repair by the number of additional months you plan to keep the vehicle. A minor repair likely costs less than a monthly payment on a newer car. But if your car is chronically in need of repairs, it might be time to buy a new or used replacement that’s more reliable.
How to Get the Most Out of Your Older Car
Don’t defer repairs and maintenance. It can be tempting to put off certain services—such as getting the cooling system flushed or the spark plugs replaced—if you’re going to get rid of your car anyway. But if you’re planning to keep it for a while longer—either because the new car you want isn’t available or you can’t find a less expensive used car you like—consider getting these kinds of services. Proper maintenance will help keep your vehicle more reliable and safer to operate. This can be as simple as remembering to get the oil and other fluids changed according to the schedule in the owner’s manual. Proper upkeep could also include more involved procedures, such as fixing worn suspension and driveline components, which tend to cause damage to other parts if left unchecked. You should also fix oil and coolant leaks, which can damage the car.
Research repair shops. Going to the dealership usually ensures high-quality service work, but there are many comparable independent shops that charge less. Once you find a shop you like, CR recommends developing a rapport. Regular visits will help them get to know you and your car, and they may be able to tell you in advance if your car will need a big repair. That can help you plan for the expense. (Find quality shops in your area.)
Ask about financing. It’s always better to pay for repairs at the time of service, but according to bankrate.com, 56 percent of Americans don’t have enough saved up to pay for a $1,000 emergency. If you fall into this category, paying with a credit card—which may have a high interest rate—can be an expensive option. But according to RepairPal, some shops offer 0 percent financing over a period of 90 days or so to help people get rolling again.
Consider extending your warranty. In general, extended warranties aren’t usually a good deal. For starters, they don’t offer the same protection as a factory warranty. But if your car is reaching the end of its factory warranty and you don’t have enough saved up to cover the cost of a major repair, an extended warranty can, at the very least, offer peace of mind. Just make sure to carefully review the details of the warranty contract. You don’t want to go in for an engine or a transmission replacement only to find that it’s not covered.
