Is it worth fixing a car for more than it's worth?

However, remember that repairing an old car is almost always cheaper than buying a new one. Compare repair costs to the price of the vehicle. If the repair costs exceed the price, it's not worth fixing your car. Once that determination has been made, you can sell your junk vehicle to a private buyer, dealer, online car buyer, junkyard, or deliver the car on your own.

At least you'll get some money for your car in this situation. Make sure this problem doesn't happen to you again by creating an item in your budget for future car repairs and maintenance. Beyond repair costs, Consumer Reports says you should consider the savings of a new car with better fuel efficiency and the loss of value of the new car over time in your decision. The first is to fix your car and drive it forever, and the second is to buy the best car on the market.

In other words, you're spending so much money that you could buy a used version of your current car that actually works instead of repairing your broken car. This is because the cost of repairing the car generally exceeds the value you'll get from the car for repairing the problem. The following sections describe what to do when repairs cost more than they are worth and when it's time to sell it. Paying attention to maintaining your car now can save you from having to spend even more money on repairs later on.

For older cars or more serious damage, the repair cost may be higher than the KBB price of your car. At first, leaving your old car may seem like a no-brainer and you can't help but imagine how good you'd look with that new car. If the car is especially useless in their book, they won't give you money, but they'll tow it for free. So how exactly do you live without paying for a car and still get the car of your dreams? The key is in your approach to saving money.