Car Repair Vs. Buying Another Car

Consumer reporter Clark Howard told people on his radio show that, on average, people get a new car every three or four years. During a down economy, however, many people can no longer afford that luxury. Hanging on to your car, even if it means making repairs, is one possible money-saving option, but you need to know how long you should hold onto your car and when to throw in the towel.

Decision

It's a happy day when you've made your final car payment and can now drive your vehicle free and clear, barring gas, maintenance and insurance. But with older cars, something invariably goes wrong, and you have to shell out some bucks for repairs. The first time that happens, it might not be a big deal; you might even have expected to make a repair, but as the car ages and you are pouring more money into it, determine whether it's time to get rid of the car.

Typical Repairs

According to Edmunds.com, some expensive repairs are unavoidable on an aging car, such as axle boots, brake rotors and the timing belt, usually around the 90,000 to 120,000 mile mark. While these types of repairs are going to hurt your wallet, it is almost always cheaper to get them done than to buy a new car. If you have a blown motor or a bad transmission and your car is worth more than the cost of the repair, go ahead and get it done, because that repair is still going to be cheaper than buying new.

Reasons to Buy

If you don't want to worry about your car breaking down on you at an inopportune time, you might want to buy a new car. Once your car gets to a certain age, getting it repaired does not guarantee that you won't have to repair it again soon. You won't have to worry about a new car breaking down for at least three years. If you are spending more time at the repair shop than you can afford, you also might want to get a new car. Sometimes, the mechanic doesn't fix your car properly, which could require several frustrating back-and-forth trips, cutting into time you could be at work or with your family, in addition to the expense.

Car's Worth

Perhaps the most basic way to determine when to repair versus when to buy another car is when the cost of repairs is going to be more that what the vehicle is worth. Check the Kelley Blue Book to find out. If that is your situation, your best money-saving bet is probably to buy a used car. Avoid a new set of problems by taking the vehicle to a mechanic before you buy it, and only buy it if the mechanic confirms that the car is in good shape. Buying a certified used vehicle, which is a car only two or three years old, is usually a good way to go because these cars often come with warranties, backed by the manufacturer.

Make Your Car Last

To make your car last as long as possible, maintain it regularly by following the directions in your car's service manual. You'll want to change the oil and filters, get transmission tune-ups and rotate your tires on a routine basis. Most cars can last up to 200,000 miles, according to MSN Money. Tuck away $50 a month, so you'll be prepared for a repair.