Like it or not, “Cash for clunkers” was an interesting way to get owners of older cars to trade them in on new ones.
As many people found out, if your ride didn’t qualify, or you just weren’t ready to part with it, the question remains: When do you repair an old car that needs a replacement transmission installed and when do you say goodbye?
The decision gets less clear when the car starts nickel-and-diming you to death, as far as I’m concerned. I think a good guideline is when your car starts to create legitimate repair bills that start to look like a monthly car payment.
Car repairs for Americans were as high as $38 billion to fix their cars in 2008, according to the Automotive Service Association, with the average repair cost $217.
One of the guidelines from the AAA is that when a repair exceeds 50 percent of the book value of the car, it’s time to replace it.
I don’t agree with that, the decision on when to give up has to be approached on a case-by-case basis. Depending on the overall condition of the car. If the car is in reasonably good overall shape, it makes fixing the car very feasible and affordable. If a car engine looks like a smoke bomb when you start it up, or it clunks down the highway, you’re probably looking at a lot of repair bills, and it may be time to get a new car. But think about it first.
Yet, if the book value is $3,000 to $4,000, and the rest of the car is solid, you’re probably better off forking over the $800 to $2,000 for a used or rebuilt transmission than taking on a new car payment.
The research indicates that believe blown transmissions are the most common big-dollar repairs for older cars, though they’re not necessarily an economic kiss of death.
People have to replace their engines more often than you think, Hanson said. Owner of GotEngines.com “It might be worth it to replace it just to avoid getting into a deeper financial situation.”
“You can put it to yourself this way: I can get a rebuilt transmission for $900 or I can get a new car for 20,000 dollars and a car payment that’s $700 a month.” Unless the car is really trashed, $900.00 sounds much better than $20,000. Plus, you may pick up some fuel mileage if the transmission was not working properly.
Some small repairs might cost little or nothing, meaning those repairs can be small issues like a dash light or interior lights and other inexpensive issues that don’t get attended to.
Some car manufacturers have 10-year/100,000-mile powertrain (engine and transmission) warranties. Emission-related issues (catalytic converter, engine-control module) may have eight-year/80,000-mile warranties.
Many experts and me too, say that because cars are generally well constructed, they may hit and easily surpass 200,000 miles, which could strengthen the case for hanging on rather than trading in.
“I don’t think 300,000 is even out of the question, especially if you have been taking care of your transmission” said Hanson of GotEngines.com.
“It’s totally do-able, if you maintain them really well.”
Assuming that the replacement car would be new, rather than a used vehicle, I can’t cited many arguments against the repair route, particularly the peace of mind from a reliable car with no payments and less expensive insurance as well.
Some people just want new car or truck.
If you can afford a new car and are sick of the old car, fine, I would take the time to have a mechanic evaluate the condition of the whole car and entire expense of repairing both small ticket items and big ticket items like transmissions on one repair order and then making a decision. Most of the time it goes back to fixing your older ride.
GotTransmissions.com has the most complete line of transmissions in the Continental US. Every transmission is pre-tested and guaranteed and our prices are competitive. Trust me. Call 866-320-1182
