Should I Repair, Rebuild, or Sell? Finding a Cost-Effective Solution to Car Problems
Owning a car comes with a number of expenses: insurance, gas, and repairs are just a few. However, it’s no secret that the longer you drive a car, the more money you get out of it. Car owners are always balancing the benefits of repairs, rebuilding, or selling the vehicle. All three options have their pros and cons; sadly there isn’t simple answer for which is the best in all cases. If you’ve been having car troubles, you might be torn trying to decide whether it will be best to sell the car, or pay for repairs. If you closely examine the costs that accompany repairs and rebuilding, and compare them to what you could get out of selling the car, it will be easier to land on a decision. If you’re looking at some costly repairs, read ahead for some advice on whether or not selling will be your most cost-efficient option.
Repair
No matter how you treat your car, eventually a repair will be necessary. When you find that your vehicle needs maintenance, consider the cost versus the return of the repair. Ask yourself, how many miles will you get of the repair and how much longer until another one is needed? Additionally, auto experts who specialize in Subaru Outback parts suggest that you consider if the cost of the repair is lower than payments on a new car. If the repairs are minor, and spanned out over long periods of time, repairs will cost you less in the end. If you are constantly repairing the same, expensive parts, it might be time to think of a different option.
Rebuild
While a rebuild costs significantly more than a repair (potentially several thousand dollars more), sometimes it’s still worth it. There are many factors to consider before rebuilding a car, but a car should never be rebuilt if the cost exceeds the vehicle’s value. That being said, classic cars or sentimental vehicles may be worth the investment; after all, they serve more of a purpose than getting from point A to point B. If you are thinking about rebuilding, make sure you do your research to figure out what it will really cost you, and consult with a professional to get an accurate idea of the cost and the extent of work that will need to be done.
Sell
Sometimes people can’t quite tell if selling is their best option, but it’s pretty simple to figure out when you compare the money you can get out of the car compared to how much you will have to put into it for repairs. It might be time to consider selling if the repair is going to cost more than half the value of the vehicle. Additionally, consider selling if the repair would cost more than new car payments or is just one of multiple high-cost repairs. Ideally, it’s best to sell a vehicle before you reach this point; you’ll get considerably more money for it. No matter what, don’t repair the vehicle and then sell it (unless state laws require you to do so); you probably won’t get your money back in the purchase price.
From minor maintenance to major replacements, sooner or later a car will need to visit the mechanic. As the car ages and costs for upkeep rises, it can become a tough call whether to spend the cash or ditch the wheels. Carefully compare the money required for maintenance versus the cost of a new vehicle. It can be tough to sell a car if you have had it for a long time—there may be some sentimental value to it. All the while, keep in mind that sentimental value and memories won’t protect your pocketbook, so if repairing and rebuilding is costing you ridiculous amounts, you may need to forgo your sentiments in order to make the most economical choice.
Category: Family Finances
