FMOOD 0345: When to Fix a Vehicle and When to Buy Another
When is it appropriate to repair a vehicle as opposed to purchasing another? If you haven't had to ask this question yet, you will likely need to eventually. I recently had a situation where I discovered that while my vehicle is still drivable, I will eventually need to incur a somewhat costly repair in order to keep my vehicle roadworthy. Sometimes our situations with our vehicles might be a little different, though. Perhaps your vehicle may drive just fine but you find that your vehicle needs other repairs in order to pass a state inspection, for example. In any case, when we come to the point where we need to decide whether or not a vehicle repair is worth the expense as opposed to buying another one, there are certain things that we must do in order to maintain a level head throughout the process. First and foremost, we need to be sure to not quickly react because of panic. It's all too easy to hear bad news about our current vehicle and head over to the dealership. This is especially problematical if we end up taking on car payments again when our previous vehicle has already been paid off. Instead of dealing with that potential setback, it's better to not panic and instead take the time to consider all available options. You can be pretty inventive with this, too. Write down all of the ways that you could respond to this problem, and from this list, choose your best course of action for your particular situation. The bottom line is this. Vehicles are not assets, and they should not be treated as such. They are liabilities that depreciate over time and usually cost money to maintain as long as you own the vehicle. Our best way of handling the financial aspect of owning a vehicle and the potential of having mechanical problems at some point in time is to prepare ourselves for this event and be ready for when it happens. God bless.