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When to Get a New Car vs Repair Your Car

Have you ever been in a dilemma whether to have your car repaired or to buy another car? It doesn’t mean that you are to buy a brand new car but get a different car.

Issues to consider

  • Mechanical Issues
  • Transmission
  • Tires
  • Break
  • Starter

  • Looks problems
  • AC
  • Doors
  • Bumper

If you are having mechanical issues, you probably would have to fix that one first. This is because it would be difficult to sell a car without a running transmission.

On the other hand, if the issue is about the looks, this is where you have to weigh things. Let’s take a look at this scenario.

When everything is working fine, the car’s value is $4,000.
You are thinking of selling it.
Then, suddenly, you hit a deer and you damaged your bumper, doors, etc.
The first option, spend $1,500 to have it repaired because insurance won’t cover it.
Another option would be to sell the car with the issues at $3,000.

If you do the math, you could sell the car for $3,000 damaged or get it repaired for $1,500 and it would still be only worth $4,000. Now, you’ve spent an extra $500 to repair the car.

The smart approach would be to sell the car at $3,000 without having the issues resolved and put that money towards a better car.

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DISCLAIMER:

On MyLittleNestEgg.com we try to provide accurate information on personal finance and investing, but it may not apply directly to your individual situation. We are not financial advisors and we recommend you consult with a financial professional before making any serious financial decisions.

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