Is It Worth Repairing Your Car?

One of the questions we are getting more often at our Concord, NH auto repair shop, is a pretty simple one:

“Is it worth putting this much money into my car?”

It is an understandable question. The cost of automotive parts, labor, tires, electronics and just about everything else associated with repairing a modern vehicle has gone up. When someone is looking at a repair estimate of several thousand dollars, it is natural to start wondering if that money would be better spent replacing the vehicle.

My answer is yes; it is still worth repairing your car more often than you might think.

There are certainly exceptions, especially here in New Hampshire where rust can ultimately determine the useful life of a vehicle. But the decision should not be based simply on whether the repair bill sounds expensive, or even whether the repair costs more than the vehicle's current trade-in value.

The better question is:

What will it cost me to get another vehicle that is as safe, reliable and useful as this one will be after the repair?

The Cost of Replacing a Car Has Changed Too

It wasn't that many years ago that someone looking for an inexpensive first car, commuter car or basic runabout could find something drivable for less than $5,000.

It probably wasn't perfect. It might have needed some tinkering, tires, brakes or other normal wear items, but there were usable vehicles available in that price range.

Today, from what we see in the New Hampshire market, it is becoming difficult to find much of anything dependable at that price.

Something that runs and drives and has reasonable potential as everyday transportation can easily start around $8,000 or more. Trucks are even tougher. It is not unusual to see older, high-mileage trucks in rough condition starting in the $12,000 range and going up from there.

And those are not necessarily vehicles that need nothing.

If you want to replace your current vehicle with something newer, lower mileage and reasonably likely to need only routine maintenance for a while, you can very quickly double those numbers or spend considerably more.

That needs to be part of the comparison.

If your current vehicle needs a $3,000, $5,000 or even larger repair, the alternative is usually not buying another perfectly reliable car for $5,000.

The real alternative may be spending $15,000, $20,000, $30,000 or more to get something significantly better.

New Hampshire Rust Is One of the Biggest Exceptions

There is one major factor we must consider here in New Hampshire that someone in Arizona or another dry climate may not have to worry about nearly as much: rust.

Road salt, winter weather and years of New England driving take their toll.

If a vehicle has serious structural rust, my recommendation can change quickly.

A car can have a good engine, transmission and interior and still reach a point where deterioration of the frame, subframes, suspension mounting areas or other structural components makes putting a large amount of money into it difficult to justify.

That is different from having some cosmetic rust or replacing rusted wear components.

When we are helping someone decide whether a vehicle is worth repairing, we need to look at the condition of the whole vehicle, not just the part that happens to have failed today.

If the structure is still solid and the rest of the vehicle is reasonably sound, repairing it often makes sense.

If major structural deterioration is reaching the point where the vehicle is nearing the end of its safe useful life, putting several thousand dollars into a major mechanical repair may not.

What If the Repair Costs More Than My Car Is Worth?

This is probably the biggest sticking point for many people.

Someone might say:

“My car is only worth $5,000. Why would I put $6,000 into repairing it?”

That sounds logical at first, but vehicle value is more complicated than that.

If you are planning to repair the vehicle today and immediately sell or trade it tomorrow, then I agree. It probably doesn't make sense to spend $6,000 just to increase the sale price by a fraction of that amount.

Save that money and put it toward the replacement vehicle.

But what if you like your current vehicle?

What if you know its history?

What if it fits your needs, you are comfortable driving it, it is structurally sound and after the repair you realistically expect to keep it another two, three or even five years?

That becomes a very different calculation.

You are no longer asking whether a $6,000 repair will add $6,000 to the resale value.

You are asking what it will cost to have dependable transportation for the next several years.

In many cases, repairing the vehicle you already own will cost considerably less than purchasing a newer replacement and making payments on it over that same period.

A Vehicle Has More Than Just a Trade-In Value

This is something I think gets overlooked.

For most of us, a vehicle is not an investment.

With a few exceptions involving collector and specialty vehicles, cars generally depreciate from the time we buy them. We don't purchase them expecting to make money.

We purchase them because they provide transportation.

They get us to work. They carry the kids. They tow trailers. They haul tools. They get us through a New Hampshire snowstorm. They take us on vacation.

The return we receive from maintaining and repairing a vehicle is the continued use of a safe, reliable and comfortable vehicle.

A repair does not have to increase your vehicle's book value dollar for dollar to be worthwhile.

Its value may simply be that it gives you several more years of dependable transportation without taking on another car payment.

Don't Forget the Other Costs of Replacing Your Car

The purchase price is only part of what it costs to replace a vehicle.

Depending on what you buy, you may also be taking on financing costs, higher insurance premiums, higher registration costs and the depreciation that comes with purchasing something newer.

And there is another factor that people sometimes overlook.

You know the vehicle you have. You don't necessarily know the used vehicle you are buying.

If you have owned your current vehicle for several years, kept up with its maintenance and repair problems as they came up, you have a pretty good idea what has already been done.

When you buy another used vehicle, you may be starting that process over again.

It could be an excellent vehicle. It could also need tires six months from now, brakes shortly after that, a battery next winter and an expensive repair you didn't know was coming.

Buying another used vehicle does not eliminate repair costs.

It changes which vehicle you will be repairing.

When Does It Make Sense to Stop Repairing a Vehicle?

There are absolutely times when I will tell someone that putting more money into a vehicle no longer makes sense.

When the Structure Is No Longer Sound

Major structural rust is high on that list. If the frame, subframes, suspension mounting points or other structural areas are badly deteriorated, a major repair may not be the smartest use of your money, even if the engine or transmission still runs well.

When One Big Repair Is Only Part of the Problem

A $4,000 repair on an otherwise solid vehicle is very different from spending $4,000 when we already know the vehicle is likely to need another $8,000 in major work soon. Routine maintenance items such as tires, brakes, fluids and batteries are not the same thing; every vehicle will need those over time.

When the Annual Cost No Longer Makes Sense

Most vehicles can last a long time with good care, but the question eventually becomes how much it will cost each year to keep that vehicle safe, reliable and useful. If an older vehicle needs repeated major repairs, those costs can start to add up quickly. That does not automatically mean replacing it is cheaper, but it is a strong reason to compare the repair path with the yearly cost of owning something else.

When the Vehicle No Longer Fits Your Life

It may also be time to replace a vehicle when it simply no longer meets your needs. Maybe you need more passenger room, better fuel economy, towing capacity, four-wheel drive or another capability your current vehicle cannot provide.

That is why there is no single dollar amount where a vehicle suddenly becomes “not worth fixing.”

Look at Cost Per Year, Not Just Today's Repair Bill

A several-thousand-dollar repair can be painful because you see the entire number at once.

The car’s payment feels different because it arrives a little at a time every month.

But when deciding whether to repair or replace a vehicle, it helps to look at the total cost over the next few years.

If repairing the vehicle, you already own allows you to drive safely and reliably for another three years, compare that cost with what three years of payments, interest, insurance, registration and depreciation on a replacement vehicle would look like.

Quite often, the expensive repair starts looking a lot less expensive.

So, Is It Worth Repairing Your Car?

In my experience, more often than not, yes.

If the vehicle is structurally sound, fits your needs, has been reasonably maintained and you would like to keep it for another few years, repairing it can still make good financial sense even when the repair bill is substantial.

It can even make sense when the repair technically costs more than the vehicle's current trade-in or resale value.

The important thing is to stop thinking of the decision only as:

“Is this car worth $5,000?”

Instead ask:

“What is the least expensive reasonable way for me to have a safe, reliable vehicle for the next several years?”

Sometimes the answer is replacing the vehicle.

Very often, it is repairing the one you already have.

Need Help Deciding Whether Your Vehicle Is Worth Repairing?

At Accomplished Auto in Concord, New Hampshire, we know that recommending a large repair isn't just a mechanical decision. It can be a major financial decision for the vehicle owner.

Our goal is to give you enough information to make a good decision.

That means looking beyond the immediate repair and considering the overall condition of the vehicle, rust, maintenance history, other upcoming needs and how much useful life we realistically believe the vehicle has left.

If we believe a vehicle is solid and worth repairing, we'll explain why.

If we think major rust or other problems mean your money would be better saved toward another vehicle, we'll tell you that too.

Ultimately, the right answer isn't about what creates the biggest repair bill. It is about what makes the most sense for you and gives you the best chance of having safe, dependable transportation.

Accomplished Auto
Expert Auto Repair. Honest Service.
Concord, NH