What Should You Always Check Before Starting A Repair And Why?

ix Min Read | Aug 26, 2022

Your car has been in the shop more than than in your driveway lately. And you have some other big repair on the horizon. You're ill of sinking money into information technology, but yous're not certain what to do next.

Exercise you go along throwing cash into it and hope it doesn't intermission downwards again? Or do you sell it and apply that money toward another ride? It'south a big decision.

The first step in solving a dilemma like this is to do a piffling math. Don't worry! We'll walk you through it step by pace. Your calculations will betoken yous in the right direction and help take the stress out of your decision-making!

And the best part? After y'all determine what to do, we'll show you how to relieve money for the repair or your side by side car. Cheque information technology out, and and so get back to your life—and all the places it takes you.

Should I Repair or Replace My Car?

Before we get into the numbers, information technology'south important to call up there's always a spectrum when it comes to car repairs. Meaning the math can only show y'all so much—similar whether you're leaning more than toward a repair or replacement. Other factors, such every bit repair frequency and what you owe on your car, come into play as well. Keep these in mind as you're running your numbers.

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Okay, time to get started. First, estimate the value of your car (without repairs). Sites similar Kelley Bluish Book or Edmunds are skilful examples of resources that can help you with your estimation.* Only for statement's sake, allow's say information technology's $5,000. And your estimated repair is $1,000. We'll say for this example that the repair volition bring the value of your car up to $6,000. That may not be the case in every situation, depending on the overall status of your auto and the type of repair. Your mechanic should be able to give you an idea of how much value your repair will add together to your car.

Then in this instance, if y'all had to sell your car immediately subsequently the repair, you'd still recoup the money you simply put into it. In this case, yous're probably leaning more toward a repair. Now, if this is your commuter automobile and y'all're getting to work late in one case a calendar week cheers to a breakup, it might be time to evaluate what these repairs are actually costing y'all—in terms of headaches.

On the other hand, if that initial mechanic bill was closer to $two,000, and the value of the car increased to only $half dozen,000 with the repair, you're probable leaning toward selling the automobile and putting that money toward another machine with your $vii,000. That manner, yous're essentially getting a amend motorcar for the same coin.

Owe more on your machine than it'due south worth? Here'due south what to do near your upside-down auto.

If You lot Desire the Gear up: 6 Steps to Pay for Car Repairs

Decided to go ahead with the repair? Your side by side event is paying for it—because information technology's probably going to cost a not-so-nice chunk of change. Merely what if you lot don't have the cash on hand to pay the nib? That's okay. Here are six steps to finding the money yous demand to fund your repair:

Step 1: Shop effectually.

Don't have the first quote y'all're handed. Become the initial diagnosis from a trusted dealership or a larger mechanic shop, but don't assume their toll is the cost. The majority of your cost is probably not parts, but labor. And it'south almost e'er college at larger, more established shops.

To find a reliable mechanic for a lower price, ask a few friends where they get for trustworthy work. And so call effectually to observe the best price. While you lot're on the telephone, ask about whatever current discounts and specials they might offer also.

Footstep two: What can y'all practise yourself?

Maybe you need new brakes, but y'all also demand to replace the door handle that came off this morning.Why non get the brakes fixed at the shop, and find an subsequently-market place replacement for your door handle online? And so watch a YouTube video and set information technology yourself. Merely exist sure to follow the directions very advisedly.

Step 3: What tin can expect?

If the estimated repair is still out of your condolement zone, inquire the mechanic what needs to exist stock-still now and what can wait a few months. Don't skip of import condom features like brakes, tires and timing belts. Only you can live without automatic windows for a while.

Step four: Make a upkeep.

Allow's say you've lowered the repair price equally much as possible. Now it's fourth dimension to find the cash to pay your beak. We recommend making a nothing-based upkeep before yous start overturning your couch cushions in search of loose modify. You tin make a budget in about ten minutes with our favorite budget app, EveryDollar. It's gratis, and it's a style less labor-intensive than excavation through your sofa.

Stride 5: Motility your money.

If you're still coming up brusk, no trouble. Simply punch your budget back in nonessential areas like restaurants, haircuts and new clothes. Y'all can also divert your savings temporarily. And as a very last resort, you lot can use your emergency fund for absolutely necessary repairs. Just restock it as shortly as possible.

Step 6: Budget for future repairs.

Ensure this issue doesn't happen to you over again past creating a line particular in your budget for time to come automobile repairs and maintenance. That way, the money will be there waiting for you when you need it—and y'all volition.

If You lot Want a Replacement: Should You lot Lease, Purchase New, or Purchase Used?

Let's say you've decided it'south not worth it to repair your current car. Y'all're ready for something else. While it'southward tempting to want your side by side car to be new and under warranty (read: no repairs!), the last matter you want to do is caput to the nearest new auto dealership. Hither'southward why:

New Cars.

The depreciation on a new vehicle is jaw-dropping. A $20,000 car volition exist worth near $8,000 in 5 years.^[ane] That's a sixty% decrease! Even after just 1 yr, the car could go down in value as much as 25%. So unless you have a net worth over $1 one thousand thousand, don't purchase new—ever. Let someone else absorb the depreciation.

Leased Cars.

A lease is simply the virtually expensive way to operate a car. Every month, your lease payment goes to cover the car's depreciation plus the dealer's profit. At the end of the charter, you have naught equity in the car, but you lot practise accept the choice to buy information technology. That may or may not exist a good deal since the purchase cost is set at the beginning of the lease and isn't based on the actual value of the car at the end of the lease. Then there are the fees—a fee you'll pay if yous exceed a certain number of miles or have excessive wear and tear on the car, a fee you'll pay if you make up one's mind not to purchase the auto when your lease is upward, and a fee you lot'll pay if y'all practise determine to purchase it. All that adds upwardly to a good deal for the dealer—non for y'all.

Used Cars.

Your best bet is to buy an affordable, used car with the money you lot take saved (combined with the greenbacks from the sale of your electric current motorcar). That mode you ain the car, rather than information technology owning you. Used automobile doesn't hateful crap auto; it only ways you're smart enough to allow someone else pay for that initial drib in value. Buying used is the only fashion to go.

Find out how to get the best deal on a motorcar y'all love! Download our free Auto Guide today!

How to Pay for a Car in Cash

Don't go into debt for a car. It's just not worth information technology. That will only requite you more grief down the road. Think, all cars need repairs and maintenance somewhen. With a loan, yous'll have a monthly car payment and repair bills on top of that.

Don't go into debt for a machine. Information technology'due south but non worth it.

Then how exactly practice you live without a car payment and still go the car of your dreams? The fundamental is in your arroyo to saving money. Here'due south a strategy we honey:

1. Save Your Auto Payment.

Go ahead and buy the car you can beget with the cash you take on manus—permit'southward say it's $5,000. That can get you around for at least 10 months or so. And then accept $500—the average monthly payment on a new car—and salvage it every month.^[2]

ii. Sell Your Automobile and Combine Your Savings.

After 10 months of doing that, you lot'll have built your machine-buying upkeep back up to $5,000. Add together that to the cash you get from the sale of your current car (let's say $4,000), and you accept $9,000 for a new ride. That's a major upgrade in automobile in simply 10 months—without owing the banking concern a dime!

iii. Keep Saving and Upgrading.

Only the fun doesn't have to end there. If you go on consistently putting the same amount of coin away, ten months later yous'll have another $5,000 to put toward a automobile. Yous could probably sell that $9,000 vehicle for a trivial less than you paid ten months before—meaning y'all'd likely take around $13,000 to pay for a automobile, only 20 months later on this whole process started.

Pay for Car in Cash

The bottom line is this: At that place's a lot you could practice with an extra $500 a month!

The less money you're spending on your car, the more than coin you take to put toward more important things, like your kids' college fund, your retirement, and paying back those erstwhile student loans. It's okay to own a nice car—just don't allow your car ain y'all.

In fact, don't let any of your stuff—or even your coin—own you. You're the one in charge here! Yes—you. If yous want to larn how to take control of your money for expert, give Ramsey+ a test-bulldoze. You'll go all the tools and all the teachings you need to brand your money work for yous, instead of the other way around. And right now, you tin can effort Ramsey+ in a free trial. Boom.

*Kelley Blue Book and Edmunds are not in any way affiliated with the publisher of this content. The site links provided are for reference simply and non an endorsement of any production or service. No warranty or representation is made regarding these tertiary party sites or services.

Ramsey Solutions

About the author

Ramsey Solutions

Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial communication through 22 books (including 12 national bestsellers) published by Ramsey Press, besides equally two syndicated radio shows and x podcasts, which accept over 17 million weekly listeners. Learn More.