Repair Your Car Or Buy A New One?
Unless you're James Bond and sitting behind the wheel of a brand new, $250,000, gadget-armored V-12 Aston Martin Vanquish, it's natural to dream of driving a better car, a newer model or just a more reliable vehicle - depending on the status of your current wheels.

However, most of us live in a practical world of hard financial decisions, and the purchase of a new car is not to be taken lightly. So, when should you repair your car, and when should you buy new transportation?

This is obviously a subjective question without a clear, right or wrong answer. Many factors figure into this decision, and it shouldn't be made lightly. If you figure that the average driver purchases perhaps only five to 10 cars in an entire lifetime, it's not like deciding whether to buy a Hershey Bar.

First, you'll need to ask yourself some questions. If money is a finite resource for you, as it is for most of us, have you properly budgeted and examined how much you can afford to spend on repairs as opposed to buying a new car?

In addition, you will obviously need to determine the nature of the malfunction. What broke down? Is it serious? What's the total cost of parts and labor? What's that expense compared to the total outlay of a down payment and new monthly payments on a replacement vehicle?

In most cases, you save significantly by fixing your current car as opposed to purchasing a new vehicle.

Be aware of how much new cars cost these days - regardless of whether you buy or lease. Even moderately priced smaller models (like Honda Civics, Toyota Tercels and Ford Escorts) can carry a sticker price of $15,000 loaded. If you lease the vehicle and add in the various related fees, the total amount spent climbs higher (and, you're left with no equity after the lease period).

Look at this chart showing the difference between modest spending to maintain your current vehicle and buying or leasing a new one.

Total Expenses Over A 3 Year Period
Purchase 2001 Accord