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Put new engines, water pumps, etc. in that old car. It saves 1000s a year without that new car payment.
By Anne from Fernley, NV
Well if the repairs are not budget busting it better to make the repairs but for larger repairs more it is cost effective to trade for another car. It does not have to be a new car. I bought my last new car in 1997. I drove it 250,000 miles. I always kept it in top shape but at that mileage everything seemed to go at once. It just wore out and would be very expensive to repair so with the money I would have spent on repairs to the old car I bought a program car a couple of years old with 20,000 miles for a lot less than a new car.
My rule of thumb is, as long as the repairs per year cost less than car payments I repair. If the repairs continually exceed the car payment I replace. My car is 12 years old, paid off several years ago and the repairs so far this year are around $2000.
Plus, you don't have to worry about your car being recalled a week after you bought it, either....
Agree! they say, "The cheapest car you can drive is the one you're already driving." And now with celphones I am not afraid of being stranded. Even a $2000 repair is cheaper than $32,000 in new car payments. My plan is to get 20 years out of my pickup truck, only five to go.