Edmunds Members - Cars and Conversations

benjaminh

xwesx said:

I think that the argument of repair cost versus resale value is a logical fallacy. We don't own our cars because we plan to sell them someday; we own them to drive them! So, yeah, it might not seem to make sense to spend $2,000 on a car "only worth" $6,000, but does it make more sense to spend $6,000 on a different car over that same time period? I would rather spend $2,000 than $6,000, but maybe that is just me.

As such, the primary point of reasoning, assuming one doesn't just want a new car (in which case that IS the root of the argument, and the financial justification is only a way to sooth the conscience), is whether the vehicle has ongoing reliability concerns or will cost more than a replacement.

In most cases, the answer is that it is usually less expensive to keep what you have than to buy something else. I currently set that threshold at $4,500 per year, though that's probably even a little low today.

Good points.

Perhaps I'm misguided, but I thought that a car wasn't totaled out by repairs unless the cost to fix exceeds the market value. So it might still make sense, at lease for some people, to put $5k of repairs into a car worth more or less 6k. But if you're approaching the value of the car when it comes to repairs probably wise to let it go.

Interesting threshold you have of $4500 a year for maintenance and repairs. Seems like a lot.

My maintenance threshold at this point is low. I've spent a total of $2670 on my 2018 TLX since I got it, including a set of Michelin tires. That means I've only spent $360 a year on maintenance and repairs.

I was hoping that doubling that, to around $700 a year for maintenance and repairs, might be enough for the next few years.

But looking at average numbers it seems like I'm being optimistic. AAA says members spend an average of around $1450 a year.

https://www.acg.aaa.com/connect/blogs/4c/auto/how-much-to-budget-for-car-repairs

The site Car Edge says that by year 7 the average TLX owner will be spending at least a thousand a year, and that climbs steadily. More ominously is that the chance of a major repair according them goes up to 40% by the time the car is 12 years old.

https://caredge.com/acura/tlx/maintenance