Repair or replace? Major car trouble can prompt question
Whether they value the high miles-per-gallon rating of a small hybrid, the passenger space of a minivan, or the hauling and towing capacity of a full-size pickup, a wide range of priorities can drive consumers' vehicle-buying decisions.
Once that major purchase is made, there are also many factors that can shape how long the owner's relationship with the vehicle lasts.
As the odometer digits creep upward and the dashboard warning lights start to glow, a big-ticket repair estimate might prompt the motorist to weigh whether it's worth it financially to fix the car or truck or shop for something less worn and torn.
While they tend not to list a tipping point, several consumer and automotive publications have offered factors and suggestions to consider when deciding whether repair or replacement makes more sense.
From a purely financial standpoint, these sources note that it frequently makes sense to hang onto a car as long as possible.
"Here's the single most reliable way to save money on cars: Keep your clunker and drive it till it drops," the editors of Kiplinger's Personal Finance magazine noted in a 2015 article.
When properly maintained, modern vehicles often can run significantly past the 100,000 mile-mark. By sticking with one for a longer term, Kiplinger's notes that an owner can avoid not only the monthly payments that a new-car purchase involves, but also the higher insurance premiums and registration fees that often accompany it.
Edmunds.com, a website offering a variety of data, tips and advice for prospective new and used car buyers, also notes that fixing a car tends to be the cheaper choice than buying a new one.
"Although something as severe as a blown motor or failed transmission will run you between $3,000 and $7,000 to replace at a dealership, such repairs still don't cost as much as buying a new car," Edmunds senior consumer advice editor Ronald Montoya noted in a 2015 article. "That $3,000 or $7,000 would certainly make a nice down payment, but then there are the monthly payments to consider. You can perhaps purchase a used car for that much, but just keep in mind that another used car could come with its own set of issues."
A 2015 article from Carfax, a vehicle history reporting service, offers one possible scenario when replacing a trouble-prone car with a new or late-model one would make sense: if maintenance, repairs and operating cost exceed the car's value. At the same time, prospective buyers are reminded to calculate how the likely monthly payments and operating costs of the newer vehicle would fit their budgets.
Dollars and cents aren't the only details that can shape a decision of when to replace a car, though. Consumer and automotive publications note that the time saved in visits to the repair shop can sometimes tilt buyers in the direction of a newer vehicle. The promise of improved fuel economy— a potential money-saver — can be another such factor, as can more modern safety features. Sometimes, a purchase might be influenced by simple "want" or convenience factors — a fresher exterior look or an up-to-date infotainment system, for example.
Eric Gudmunsen, owner of Bill's Standard Auto Repair in Petoskey, said he's seen numerous customers contemplate the fix-or-replace question when faced with a major repair. While some see advantages to keeping their current ride, others occasionally opt to find a vehicle with more promising reliability.
As an independent shop, Gudmunsen said Bill's Standard regularly sees vehicles that have logged six-digit mileage, and added that widely needed replacement parts tend to be available for a decade or more after a given model goes out of production. But in snowbelt areas such as Northern Michigan, road salt's long-term effects can sometimes make replacement a necessity earlier than it would be in other climates.
"Around here, everything gets so rusty," Gudmunsen said, noting that softened frames and other major corrosion damage sometimes drive customers to opt for a different vehicle.
Out the door
According to Kelley Blue Book, the average U.S. transaction price for new light vehicles — including cars, crossovers, SUVs and light trucks — stood at $34,968 as of January 2017, up 3.3 percent from a year earlier.
