If you need a major car repair, you may be wondering if you should pay for the repair or just buy a new car. The answer depends on your financial situation and your personal preferences. However, to help you decide, here are a few signs that you should get a repair instead of buying a new car.
1. The Repair Is Less Than a New Car.
This is the key item to consider. If the repair is only $3,000, for example, and a new car is $15,000, it probably makes sense to just do the repair. On the other hand, you could spend the repair money on a used car, but in that case, you have no guarantee that the new-to-you vehicle won't need a repair in the near future as well.
2. The Repair Lengthens the Lifespan of the Car.
Before paying for a repair, you should also consider how it impacts the lifespan of the vehicle. For instance, if you are putting in a new radiator, that protects the engine from overheating, and that directly impacts the lifespan of the vehicle. That allows you to put off buying a new car until you are ready.
3. You Don't Want to Increase Insurance Costs.
In most cases, when you buy a new car, the premiums on your insurance go up. That is simply because if something happens to the car and the insurer needs to pay out its full value, that is a larger payment than the full value of a used vehicle. By extension, the insurer has to assess higher premiums. In addition, if you have a used car, you may be able to get by with just the minimum amount of liability coverage. However, if you buy a new car, you must have comprehensive and collision coverage, and that can drive up the cost of your policy. If you are trying to decide between a new car and paying for a repair, you also have to think about how that will impact monthly bills such as your insurance. If you can't afford to have those monthly bills increased, you may want to opt for the repair.
4. The Vehicle Has Sentimental Value.
When you're dealing with cars, you can't just think about the financial aspect. In many cases, cars have sentimental value as well. If your car has been a treasured sidekick for all your best adventures or if it was a gift from someone you loved, you may want to have it repaired rather than replaced.