Yahoo Finance Repair or Replace Your Car? Dave Ramsey Says To Consider 5 Things
Sometimes the decision to repair or replace your car is made for you – when that ride no longer safely works or it’s costing you tons of money to fix it frequently.
Explore More: 4 Affordable Car Brands You Won’t Regret Buying in 2024
Find Out: 5 Unusual Ways To Make Extra Money (That Actually Work)
However, there are plenty of times when it just feels like the right moment to replace your ride. That decision can come at a hefty price. According to CoPilot, the average price for a new car in May was $49,736 and the average for a used one was $31,791.
So, how do you know when to repair and when to replace? According to Dave Ramsey, “As a general rule, if the repair costs are more than the value of the car, you should probably replace your car.” Ramsey also said you should consider a few factors when determining whether to repair or replace.
Value of the Car
Look at your car’s value – both if you make repairs and if you don’t. Try sites like Kelley Blue Book or Edmunds. You’ll want to see if it makes financial sense to make repairs – which means looking to see if the fix will increase the value.
Cost of Repairs
Call and look around to see how much repairs might cost you. You want to make sure they’re not more than the car’s value – even with the fix. Also, ask if this is more of a temporary fix or a permanent repair. In the long run, it could cost you much more to keep making repairs.
Frequency of Repairs
Speaking of repairs – how often are you going to the mechanic to fix your car? Do some research to see what repairs are normal for your car and when to expect those. If you’re going to the shop for many repairs, it might be time for a new ride.
Read More: 10 New Cars to Avoid Buying in 2024
Safety of Your Vehicle
Your mechanic can be your best friend when it comes to safety. In this case, it makes sense to see if the problems with your vehicle are safety issues. If so, it might be time for a new one. Keep this in mind – just because your ride is older doesn’t mean it’s dangerous.
The Current Market
Here’s a final thing to consider: What is the current car market? If prices are high or supplies are limited, holding off on replacing your car for now may make sense.
More From GOBankingRates
I've Secretly Put Us in Serious Debt: How To Break the News to Your Spouse
This is The Single Most Overlooked Tool for Becoming Debt-Free
This article originally appeared on GOBankingRates.com: Repair or Replace Your Car? Dave Ramsey Says To Consider 5 Things
