Car Broke Down? Find Out If It’s Worth Fixing Up
Nothing is more nerve-wracking than when your car decides to have a breakdown on your way to work. Having your ride fail you is one of those random incidents that can swiftly take a good day and turn it on its head. Let’s face it, you weren’t prepared for this to happen and the last thing you need right now is an expensive repair bill on your hands. So, if your car broke down, what’s next?
After taking a good, hard look at the $1,500 repair estimate, it’s time to make a decision.
Do you front the money to fix up your old wheels, or do you use it to put a down payment on a brand-new car?
To some, ditching the old clunker in exchange for a new whip seems like an obvious play. But to others, it makes more sense to fix it up to avoid having a monthly car payment.
So, what should you do when your car breaks down? Is your old car really worth fixing up? Or is it finally time to say good-bye to your old ride and buy a new car? Here’s a closer look at both options:
Is It Really Worth Fixing Up Your Old Car?
To start, you should always look up the current value of your car before opting to fix it up.
If your car broke down and the cost of repair outweighs its current value, it’s just not worth it. As a rule of thumb, you should never pay to fix your car if your car’s value is less than the cost of maintaining it.
Likewise, if your car is worth more than the repair estimate to fix it up, it might be in your best interest to get it fixed. However, you should seriously consider the overall maintenance history of the car. After your car breaks down, weigh out the risk of a similar situation happening again in the near future before agreeing to have it fixed.
Once something goes wrong with a car, it’s likely that more things will go begin to go wrong pretty soon. That’s because all the inner parts that make your car tick are all aged and will eventually quit doing what they were made to do. Take all these facts into consideration before hiring a mechanic.
When to Know It’s Time to Move On
As mentioned before, start off by looking at the repair bill.
Does it cost $1,200 to fix your wheels or $6,000? When the repair cost surpasses the vehicle’s current value, it’s time to move on. Not only that but depending on how mechanic-dependent your car has been in recent years, you may decide that the car payments and better gas mileage from a newer car are well worth the plunge.
Overall, if you’re struggling to figure out if you should keep your old car, it’s a sure sign that you shouldn’t. Just like debating on whether to break up with your girlfriend or boyfriend, if you ever caught yourself having such a debate, it’s a sign that it’s time to move on.
If nothing else, do it for the peace of mind. Do something good for yourself by finally leaving your old junker behind and moving on to something nicer, newer, and more reliable.
Making the final decision
This is a big decision and shouldn’t be made without consulting a pros and cons list:
Keeping the Old Car
- It’s faster (and perhaps cheaper) than buying a new car.
- Your insurance doesn’t go up.
- You know your old car better than some new car off the lot.
- You don’t have to go through the hassle of selling your old car.
- The downside: Your old car may have more breakdowns in the future.
Buying a New Car
- A new car will come with a warranty and require little to no maintenance.
- Newer cars are safer.
- Newer cars are less likely to breakdown.
- You’ll save money on gas and repairs.
- The downside: You’ll have to take out an auto loan.
If You Do Decide to Have It Fixed
If you’ve made the decision to keep ‘old trusty’, it’s crucial to bring it into a mechanic you trust, too. Do not go to the dealership mechanic to get it fixed; many dealerships will use such an opportunity to try and get you into a new car.
Since tax season is upon us, you might be able to use some of that refund money to pay the repair bill. Once you get your car up and running again, it’s a good idea to keep it around long enough to make the repair costs worth every dollar. Should you decide to go ahead with a new car in the future, you’ll have an easier time selling it knowing that it’s proven its reliability for a potential buyer.
How Title Loans Could Help in a Financial Emergency
Life throws us a ton of financial emergencies we’re not prepared to deal with. Having your break down is no exception.
If you had to lose some hours at work over your car breaking down, or just need a little extra cash after paying the mechanic, a title loan could provide same-day cash in as little as 30 minutes. For more information about title loans and how they work, please visit your local title loan lender today. Using your car’s equity to get fast cash is just a few clicks away!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.