When repair costs start to exceed the value of the vehicle or one-year monthly payments for a replacement, it's time to break with your car, according to automotive site Edmunds and Consumer Reports, the product review site. Again, as Montoya points out, replacing that car is likely to cost you a lot more than annual repairs. Also, if you keep the car, its market value doesn't matter. The goal is to have a working car, which you can have if you repair it.
If you're having problems with your car and don't know if things are likely to get worse, look on forums and forums for advice on the make and model of your car. So how exactly to live without paying for a car and still get the car of your dreams? The key is your approach to saving money. Make sure this problem doesn't happen to you again by creating an item in your budget for future car repairs and maintenance. Similarly, if the car leaves you stranded often, causing you to be late for work or putting you or your family in a potentially dangerous situation, a new car can give you much-needed peace of mind.
Creating a budget that includes a line item for car maintenance and repairs ensures that you have the money available when you need it. Paying attention to maintaining your car can now save you from having to spend even more money on repairs later on. I wonder if there's a point where mathematics finally says it's time to stop injecting money into the old car, like once I've invested X dollars for X time, this means I'd better buy myself a new or used car. A growing percentage of car buyers are choosing to extend their monthly car payments much longer than traditional four-year auto loans.