There’s something to be said for holding on to an older car. Not only is there the emotional connection that you might feel towards your old car, but there’s also the simple fact that not buying a new car means you’re not spending money. There is, however, a point at which you really shouldn’t keep pouring money into your old vehicle. Below are a few times when it just makes more sense to sell your car as is than to get it repaired again.
When the Repair Costs Outstrip the Value
One way to look at it is to decide if the repairs cost more than the value of the vehicle. If you have to replace your transmission or have to deal with a full engine rebuild, for example, you might be pouring money into your car that you’ll never get back. Check the value of your car on a site like Kelly’s Blue Book as it is versus the value of your car with repairs to see if you’ll come out ahead to see if spending the money on repairs is worth your time. For instance, if your vehicle is worth $1200 but the repairs will cost you $900 it probably isn’t worth getting it repaired. However, if you can do the repairs yourself or get the parts from a “junkyard” you might be able to get it fixed for $300. In which case it might be worth fixing one more time. However, Dave Ramsey actually has an entirely different criteria for holding on to a vehicle called the “hassle factor”. See his full explanation in this video.
When the Cash for Junk Cars Price Is Right
Working with a company that pays cash for junk cars can be a great way to get rid of an older vehicle. These businesses offer cash for your old car, but only you know when that price is right. Check in with one of these businesses to see what they’ll offer for your car and then compare it against your monetary needs. If the offer is right—perhaps enough for a downpayment on a new car or enough to pay some bills that are stacking—it might make sense for you to sell your car rather than to repair the vehicle.
When It Is Time to Upgrade
At some point, you’re going to want a new car. It may not even be because of the repairs needed on your old vehicle. You may simply be ready to upgrade to a vehicle with newer features or better mileage. If you’re already thinking about upgrading, it simply doesn’t make sense to continue pouring money into repairing your current vehicle. At that point, you might consider donating it to a charity or gifting it to a needy friend or relative.
When You Don’t Need a Car
Finally, you might not want to pay for repairs when you don’t actually need a car. You might be moving somewhere where you can’t take your car or to a place where cars just aren’t needed, but any such situation is going to make it unwise to put any more money into your vehicle. In these cases, a quick and easy break with the car is usually advisable.
Don’t put more money into an old car when it doesn’t make sense. If you won’t get your money back, you may want to sell it as-is or gift it to someone who can do the repairs.
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