With the costs of just about everything on the rise, making major financial decisions requires a greater emphasis on a process of research and practical economics.  This approach is a wise one to apply to deciding whether to repair or replace your vehicle.

A new purchase decision should never be based purely on emotions but should be rooted in facts.  In this month’s blog, we lay out five steps to help you arrive at a decision to repair your vehicle or make an investment in a new or used vehicle purchase.

Determine The Costs of Repair or Replace

According to the US Bureau of Labor Statistics in February 2022, in the last year the cost of purchasing a used vehicle has increased by over 41%.  This is good for sellers, but not good for vehicle buyers who are dealing with limited inventory and higher prices.  Even the cost of purchasing a new vehicle is up by about 12.4% over last year with dealership supplies lower than normal.  Source:  US Bureau of Labor Statistics

The rising costs of purchasing a new vehicle should give you pause for a moment to consider your current vehicle and if it is worth repairs to keep it on the road a little longer.

Have you had your current vehicle’s health checked to determine existing and possible future repair costs?

One important step in being able to compare the costs of repair vs. replace is to get a better understanding of your current vehicle’s health.  While vehicle age can be a determining factor, some manufacturers can far outlast the average life expectancy of a vehicle, especially if you have been good about ongoing maintenance.

While a competent service professional can inspect your vehicle and tell you what needs to be repaired now, they may also be able to spot some developing issues.   Based on other inputs, such as your service and repair history, they might give you a better idea of what to expect if you keep your current vehicle.  The service professionals at Colonial Service Station can assist you with a full vehicle inspection and make any necessary recommendations on repairs.  One way to ensure that your vehicle maintains its health is to set up a regimen of ongoing maintenance.

Our service professionals can help you identify the best maintenance plan for your vehicle that fits your needs and budget.

Do Your Research

To compare the costs between repairs or replace, you need to conduct research on purchasing a new or used vehicle.  There is so much information available to consumers now with reviews of vehicle makes and models, and costs associated with a new vehicle purchase.  Don’t forget to factor in other costs of a new purchase, such as insurance premium increases and vehicle registration fees and taxes.  Remember to consider vehicle warranties as well, which are designed to protect you from major costs in the first few years of a new vehicle.

When conducting this research, take the time to keep good notes about visible and hidden costs of a new purchase.

Ask Yourself Pertinent Questions

There are many questions you should consider in the decision-making process.

• What’s your current and long-term budget? The long-term budget is important if you are considering keeping your vehicle, and you have more unexpected repairs in the future.
• How important is having a fully dependable vehicle right now? If your driving lifestyle has changed, do you need to get another vehicle right now if you are driving less?  Many Americans have reduced their driving habits over the last few years with more work at home arrangements, and less needs to travel often.
• How important is your time and energy? If you have a vehicle that needs repairs and may need them in the future, is your time too critical to waste with a vehicle in the shop more than it is on your driveway?

Conduct a Comparison

After you have gathered all the necessary information, then you can make a more informed comparison between repair or replacement.  Having short-term and long-term cost estimates will play an important part in the comparison.  For example, a new vehicle purchase is a large up-front investment, but incrementally you may save more with fewer trips to the service station.  Try to run a few different scenarios to really look at the costs not just now, but over time.

If you are leaning toward a new or used vehicle purchase, make sure to check with us at Colonial Service Station.  We can talk to you about a pre-purchase inspection to ensure you are making a wise investment.

Make Your Decision

If you have taken all the right steps to make this important decision, it’s okay to also weigh in on your emotions.  Emotions are important because they will ultimately affect how you feel about your decision.  Just don’t let them carry most of the weight in the decision.  In the end, you should feel good about your decision and comfortable with the amount of research you applied to the process.

If you have reached a point that you are facing this decision, make sure to contact the service professionals at Colonial Service Station.  We are happy to schedule an appointment to inspect your vehicle and talk to you about your options.