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Calculating the break-even point for car repairs helps you assess whether repair expenses justify continued use. This is highly practical when you're weighing whether to fix an older car.

Start by list every expense tied to the repair. This includes components and technician fees, så maxar du värdet på din skrotbil sales tax and surcharges, and any extra charges like inspection charges. Sum the total to get your total repair cost.

Then, determine the expected extension the repair will add to your car’s life. For example, if your car is now a decade old and you expect the fix to extend its life by 3 years, then your estimated remaining life is 13 model years.

Next, assess the price of a new or used replacement. Look at the price of a comparable used car in excellent shape, or a factory-fresh option if that’s your intent. Remove its present market worth from that replacement price. This gives you the actual financial outlay to upgrade. For instance, if a another vehicle in this condition runs $10,000 and your current car is valued at $2K, your net replacement cost is $8,000.

Calculate the break-even threshold, use the full repair sum by the duration in years the repair will maintain your car’s functionality. This yields your cost per month or year. Evaluate against the monthly cost of owning a new car, which includes car payments, auto insurance, registration and licensing, and routine maintenance. When the repair expense is under the expense of acquiring and maintaining a new vehicle, then the repair pays off.

Don’t overlook the car’s reliability history. If your car has needed multiple repairs in the past year, the probability of additional issues is substantially increased. In that case, even if math supports repair, the risk of future problems may make replacement the wiser choice. On the flip side, if this is your first major repair and your car has been consistently serviced, then the your investment is justified.

Finally, consider your daily reality. Do you depend on it for work commutes? Are you in an area where public transit is scarce? These real-world factors can make keeping your current car more valuable even when the numbers are close.

The true cost of fixing vs. replacing is not just a number—it’s a smart decision-making guide. It helps you prevent throwing good money after bad and stops you from ditching a still-reliable car. By comparing repair and replacement costs and considering your daily driving needs, you can make a smarter, more cost-effective choice.