Car Repair or Replacement - What is recommended?

Cars can be a luxury for some while they can be a necessity for some. Owning a car involves several expenses like maintenance, repairs, breakdown fixes, insurance, etc. Whenever there is a repair or dent, the car owner has to bear the expenses and get the damages fixed. Not all vehicle repairs are covered by a car insurance provider. Car Insurance coverage is provided only in certain cases like accidents, etc. Though there is a warranty provided by the vehicle manufacturer the warranty is valid only for a year at most brands. Back to back car repairs or expensive damages can make the car owners rethink the vehicle whether they have to get the car repaired or replace it with a better one. 

Car repair or replacement, it is advised to take several practical and financial factors into consideration. The pick between repair or replacement depends upon each individual and their financial choices. 

Factors to consider for Car Repair

Car repairs can be expensive. Especially, if the vehicle is more than 5 years old, there can be wear or tear of several parts. In the case of new expensive vehicles, the parts can be of higher price. If you are planning to get your car repaired then there are certain factors that you need to consider to make it affordable for you. Check all these factors and decide if getting the damages repaired is worth the expense. 

Compare the prices: The first thing to consider if you are opting for going with the repair is the costs. Not every service centre costs the same. First, get an inspection of the vehicle and get an estimate for the fixes then visit other services centres to get their estimate as well. Pick the best one which offers branded services at affordable rates. The main motto of getting the vehicle repaired even if you spend a few dirhams extra than usual is, there shouldn’t be frequent breakdowns later on.       

Postpone the fixes: There can be certain small fixes like a scratch or seat cover change which can be postponed. But don’t postpone major ones like brakes, tires, engine, etc. which are important components of a vehicle. 

Cost of the repair: Get a current estimated value of your vehicle along with the cost of the repairs. If the repairs cost more than 50% of the current vehicle value then you can replace the vehicle. 

For example, if your current vehicle value is AED 100,000 and the estimation of the repair is AED 60,000 then it is recommended to purchase a new vehicle instead of investing in repairs. 

Future repairs estimate: Even if your vehicle repairs estimate is below 50% of the vehicle value, take the future repairs into consideration especially if your vehicle is more than 5 years old. 

Do it yourself: Ceratin fixes like tightening seat belts or windshields can be done by yourself with the help of a youtube video.

Check: Car Insurance Guide for the First-Time Buyers 

Factors to consider for Car Replacement

Car replacement is an advisable option if, 

• The repair costs are more than 50% of the vehicle value 
• The vehicle is old and finding the spare parts is difficult 
• The possibility of future repairs is high 
• Facing frequent breakdowns and repairs 

Though you’ve decided to replace the vehicle there is an important thing to consider - Used Car or New Car. 

New Car - The idea of getting a new car is exciting but think if you can afford it. Any car depreciates after a year. If your current vehicle is on a loan, you need to clear that before getting a new one. Purchase only if you can afford the new car EMI and its maintenance. 

Used Car - An used car can be less expensive when compared to a new one. But the used car can have its own expenses and as it is a used car there can be damages as well. So a proper inspection is needed before you buy a used car. 

Conclusion

Car repair or replacement totally depends upon your car condition and affordability. Minor repairs which cost a few hundreds of dirhams can be fixed easily without considering replacement options. Replacement is considered only when the cost of the repairs is expensive and there is no guarantee that the vehicle doesn’t break again. Check the important financial factors and make a decision as a car purchase is not as simple as it seems to be.