Fix or Flip? How to Handle a High Repair Estimate

It's a universal situation: you encounter a problem with your vehicle, dutifully take it to your local repair shop or dealership, and are rewarded with a service estimate that leaves you in a precarious financial situation. Inevitably, the question arises: do I bite the bullet and pay for repairs, or is it time to trade my vehicle? 

It’s a genuine dilemma, because there aren’t necessarily right or wrong answers. But with an assist from Dells Auto, you can make an informed decision that's best for you. 

Step One: Analyze The Cost 

First off, don’t beat yourself up over a large repair bill! Even the most diligent car owners are occasionally faced with unavoidably high-priced repairs. No automobile is designed to last forever, and wear-and-tear items like belts and brake rotors inevitably need to be replaced. Batteries die out, tires deflate... it's all part of the territory. 

Keep in mind that it’s almost always less expensive to repair your car than buy a brand-new car, and it’s often still cheaper than trading for a newer, used vehicle. But when you’re dealing with a big-ticket issue such as a failed transmission or blown motor, and the estimate lands anywhere between $3,000 and $8,000, it's time to seriously weigh your options.

Step Two: Weigh the Pros and Cons 

For the sake of this example, let’s say you’ve just been handed a $5,000 service estimate. That constitutes a significant portion of your salary, making the decision to fix or flip daunting. Before things can snowball, break your situation down into a list of pros and cons. Then, after considering every factor, decide which side you fall on. 

Pros for Fixing: 

• FIX if you’re saving for a brand new car and are confident the repair will keep your current vehicle on the road for another year or two. If a new car still seems like a viable option afterwards, you’ll hopefully have saved enough to make it possible.
• FIX if you're planning to trade for a comparable vehicle. Although trading for a used vehicle may be cheaper than paying for the fix, there’s no guarantee that any vehicle you trade for won’t come with its own set of issues. Check CarFax.com or a similar source to check the vehicle’s history before you commit.
• FIX if the car means a lot to you. Seriously, don’t discount sentimental value. If the car was a gift from a loved one or a dream car you worked hard to save for, don’t give up on it just because a calculator says you’re making the right move. You may wind up regretting it. 

Pros for Trading Up: 

• FLIP if your current car has been experiencing recurring issues. If you've been making frequent trips to the garage recently, it’s most likely time to move on. 
• FLIP if the repair bill is more than half the value of your vehicle. Consider trading up at this point, as the next issue you encounter could lead to a total loss.
• FLIP if your current car is seriously lagging behind in modern safety features. If your car lacks emergency braking, collision detection, blind-spot monitoring, or other, now-standard safety amenities, consider trading up to a more recent model for the sake of your own safety. 

Step Three: Make the Call 

Ultimately, the decision to fix or flip is yours to make. But if you’re still having doubts or have questions, our team of professionals is here to guide you to the right path.

If you decide to fix, our Service Department is here to ensure you get the most out of your current vehicle. If you opt to flip, schedule a test drive in your next vehicle today! We’ll settle the finances before you drive off our lot, ensuring you some much-needed peace of mind as you drive confidently towards life’s next challenge.