When it comes to deciding whether or not to repair your car, it's important to consider the value of the car in comparison to the cost of repairs. Generally, if the cost of repairs is more than 50% of the car's value, it's probably not worth fixing. To find a reliable mechanic at a reasonable price, ask friends and family for recommendations and then call around for the best deal. Don't forget to ask about any discounts or special offers they may have.
Once you've compared repair costs to the price of the vehicle, you can decide whether or not it's worth fixing. If it's not, you can sell your car to a private buyer, dealer, online car buyer, junkyard, or part it out yourself. You'll at least get some money for it this way. Additionally, Consumer Reports suggests taking into account the savings of a new car with better fuel efficiency and the loss of value of the new car over time.
To avoid having to make this decision in the future, make sure you maintain your car properly. This will save you from having to spend even more money on repairs down the line. If you're dealing with an older or more seriously damaged car, the repair cost may be higher than the KBB price of your car. In this case, you may be able to get your car towed for free. When considering your options, there are two main paths: fix your car and drive it forever or buy a new one.
To make sure you don't end up in this situation again, create an item in your budget for future car repairs and maintenance. The key to getting the car of your dreams without breaking the bank is to approach saving money strategically.
