Car Repair vs. Car Replacement: How to Tell You’ve Hit the Law of Diminishing Returns

car replacementTo repair or to replace? That is the question. No car can last forever, so at some point car replacement becomes a necessity. However, the expense and hassle of sudden necessary car repairs leave many drivers wishing they had traded in their old vehicles sooner. 
How do you decide between car repair and car replacement? Below are some questions you can ask to determine whether it’s time to replace your vehicle.

  • Is it still covered by warranty? If repair expenses don’t have to come out of your own pocket, it might be cheaper to hold on to your existing vehicle.
  • Are parts due for replacement? Brakes, tires, shocks, spark plugs, filters and numerous other car parts wear out on a regular schedule. Other parts, such as ball joints and tie rod ends, can be inspected to see if they’re about to fail. If it’s getting close to the time for such repairs, you can avoid the expenses by trading vehicles.
  • How much is the vehicle worth? The car’s value may not be high enough to justify expensive repairs.
  • What’s your budget? Lease payments are predictable, and an easy expense to manage and plan for. Car repairs are mostly unpredictable and can suddenly amount to several months’ worth of lease payments. If you can’t afford to have large unexpected expenses, it may be time to consider car replacement.
  • What are the fuel expenses? Newer vehicles are more likely to be fuel-efficient, and the difference in fuel costs needs to be factored in when considering your options.
  • Is it safe? Newer vehicles are also more likely to have high safety ratings. Besides, it’s never safe to have your old car break down on a busy highway.

When choosing between car repair and car replacement, the benefits of a lease transfer can make the decision easier. Lease transfers allow you to get a newer car with low mileage and affordable payments. They’re almost always well-maintained and covered by the original warranty.

To learn more, contact the lease transfer experts at

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