Fix or Flip? How to Handle a High Repair Estimate

0 By
Posted in Charge-A-Car Tips

We’ve all been there. You encounter an issue with your vehicle, dutifully take it to a garage or dealership, and are rewarded with a repair estimate that blows past your budget. Inevitably, the question enters your brain: do I bite the bullet and pay for repairs, or is it time to trade my vehicle in for another ride? 

It’s a genuine dilemma, because there aren’t necessarily right or wrong answers. But with Charge-A-Car‘s help, you can make an informed decision and proceed accordingly. 

Step One: Analyze The Cost 

First off, don’t beat yourself up over a large repair bill! Even for drivers who are as diligent with their self-maintenance as possible, some high-priced repairs are unavoidable. No automobile is designed to last forever, and wear-and-tear items like belts and brake rotors inevitably need to be replaced. Then there are battery failures, which almost always cost a pretty penny. 

Keep in mind that it’s almost always less expensive to repair your car than buy a brand-new car, and it’s often still cheaper than trading for a newer, used vehicle. But when you’re dealing with a big-ticket issue such as a failed transmission or blown motor, and the estimate surpasses $5,000, it could be time for a big decision. 

Step Two: Weigh the Pros and Cons 

For the sake of this example, let’s say you’ve just been handed a $5,000 service estimate. It’s a daunting number, making the decision to fix or flip more overwhelming. Before the situation can snowball, break it down into a list of pros and cons. Then, after considering every factor, decide which side you fall on. 

Pros for Fixing: 

  • FIX if you’re saving for a brand new car and are confident the repair will keep you on the road in your current vehicle for another year or two. If a new car still seems like a viable option afterwards, you’ll hopefully have saved enough to make it possible.
  • FIX if you’re planning to trade for a comparable vehicle. Although trading for a used vehicle may be cheaper than paying for the fix, there’s no guarantee that any vehicle you trade for won’t come with its own set of issues. Check CarFax.com or a similar source to check the vehicle’s history before deciding. 
  • FIX if the car means a lot to you. Seriously, don’t discount sentimental value. If the car was a gift from a loved one or a dream car you worked hard to afford, don’t give up on it just because a calculator tells you you’re making the right move. You may wind up regretting it. 

Pros for Trading Up: 

  • FLIP if your current car has been experiencing recurring issues. If you’ve been making frequent trips to the garage recently, it’s most likely time to move on from it. 
  • FLIP if the repair bill is more than half the value of your vehicle. Consider trading up at this point, as the next issue you encounter could lead to a total loss.
  • FLIP if your current car is seriously lagging behind in modern safety features. If your car lacks emergency braking, collision detection, blind-spot monitoring, or other modern safety amenities, consider trading up to a more recent model for the sake of your own safety. 

Step Three: Make the Call 

Ultimately, the decision to fix or flip is your own. If you’re still having doubts or have questions, our team of professionals will guide you to the right path. Value your trade with Charge-A-Car today, and if you decide it’s time to flip, schedule a test drive! We’ll settle the finances before you drive off our lot, ensuring you some much-needed peace of mind as you drive towards life’s next destination.