It's Cheaper to Fix Than Replace

We get this question all the time.  In fact, a good friend of mine just asked me this question a few weeks ago so I'll tell you what I told him...if you consider only the dollars and sense then yes.

I've calculated this a few times over the years and I always get the same answer so I'll share it with you here.  It costs about $400 per month for depreciation, interest, maintenance for the first 4 years of an average vehicle's life.  It costs about $250 for depreciation, interest, and maintenance for the next 4 years of an average vehicle's life.   So, it's about $1800 per year cheaper to maintain and repair a used car than it is to buy a new car.  This difference is even more pronounced for trucks because the depreciation is so much higher in the first few years.  It is almost always cheaper to fix a truck than replace it.

So, that's how I do it.  I buy vehicles with 100-150k miles on them and I fix and maintain them whenever they need attention.  When my needs change I buy a new vehicle.  Otherwise I just keep fixing them.  It's hands down the least expensive option.

The best way to do this is as follows:  Find a trusty repair shop.  Have your vehicle inspected as soon as you buy it.  Update any fluids if you don't know when they've been changed.  Fix any belts/pulleys, leaks and suspension parts ASAP and then run it.  Do all your oil changes at that shop and fix any items as they appear on an inspection so that a small issue doesn't turn into larger one.  Rinse and repeat.

While this advice may seem tilted towards the shop I can assure you that it is by far the cheapest way to buy and maintain a reliable vehicle.  We've seen $250 wheel bearings turn into $1300 jobs because customers don't follow this.  We've seen $150 differential fluid changes turn into $2500 differential replacements.  Keep the monster at bay and feed him small bits frequently.  :)