subject: Is It Time To Stop Putting Money Into Your Vehicle? [print this page] Owning an older car is nearly always more economical than driving a new one. To be sure, with a new make and model, you'll rarely need to worry about failing parts. But the monthly payments, higher insurance, and other expenses make ownership costly. With an older model, you'll need to have parts replaced occasionally, but as long as the vehicle is well-maintained, problems should be rare.
Eventually, however, the cost of owning an older car rises past the point it makes sense to continue putting money into it. Parts begin failing more frequently; problems begin occurring with greater regularity; and soon, you're visiting the repair garage more often than comfortable for your budget. At that point, it may be time to finally retire your car.
In this article, we'll help you determine when it makes sense to replace your current vehicle. The following is not a formula; rather, it is meant only to raise the key issues you'll need to consider.
Age Matters
Age is an important factor in the context of the repairs you need to have performed on your car. For example, suppose your vehicle is six years old, and its transmission has failed. If the warranty has expired, you can expect to pay up to $3,000 to have the assembly replaced. If other major parts and systems are still in good condition, however, it may be worthwhile to keep your vehicle rather than buying a new one.
On the other hand, suppose your automobile is twelve years old. At this point, not only has the transmission failed, but other components are showing signs of severe wear. Spending a significant amount of money to replace the tranny may make little sense.
Parts And Systems To Check
Before you decide whether to keep your vehicle or retire it, you'll want to check certain components to determine their condition. The battery and brake pads matter little since you can expect to replace them periodically. By contrast, your transmission, engine, and suspension are critical.
With your transmission, the only item you'll be able to easily inspect is the fluid. But it can reveal plenty about the inside of the assembly. Check the fluid's level, and smell it. If there is a strange odor, or the fluid smells as if something is burning, there's a problem that may pose expensive repairs in the near future.
When checking your engine, perform a compression test. As engines age, the cylinders lose compression, and thus become less capable of efficient operation. Fixing the root cause of compression leaks can be very expensive, especially if the valve stems are contributing to the problem.
Also, check the consistency and scent of the oil. If the oil has turned to sludge, or it smells foul, there is likely a problem in the engine.
Your suspension system includes tie rods, bushings, and ball joints. After inspecting these parts, test the struts and shocks to make sure they have plenty of life left in them. Then, take a look at the wear patterns on your tires. If the wear is uneven, it may indicate problems with your suspension, many of which are expensive to fix. Realize, however, that uneven tire wear can also imply a misalignment in toe, caster, or camber. These are relatively easy to fix.
A Slow Deterioration
If the condition of your transmission, engine, or suspension is questionable, and your vehicle is at least ten years old, have a mechanic confirm whether problems truly exist. If they do, consider retiring your car. Keeping it will saddle you with costly repairs down the road.
Also, if you're experiencing a growing tide of small parts failures, take a cold, hard look at how much they're costing you. They may seem small individually, but together can expose your budget to the proverbial death by a thousand cuts. For example, the cost of replacing worn brake pads, tires, a failing fuel pump, and fouled spark plugs adds up. These parts are usually the tip of the iceberg. The more frequently these and other repairs become necessary, the more compelling the case to finally stop putting money into your vehicle.
