Should I Have My Car Fixed? Weighing Repair Costs Against New Car Prices

It’s a question many car owners are facing: with the rising costs of both new and used vehicles, does it make more financial sense to Have My Car Fixed rather than jump into the daunting expense of a replacement? For me, this wasn’t just a hypothetical scenario; it became my reality this year. Like many, the thought of a new car payment in today’s economy felt like a heavy burden. So, when my trusty 2010 Ford Fusion, a car I’ve owned since 2009, presented me with a significant repair bill, I was forced to confront this dilemma head-on.

Have you looked at car prices lately? The issue of car affordability is no secret. Kelley Blue Book data from January showed the average new car transaction price at a staggering $48,641. Used cars aren’t much more comforting, with an average December listing price of $25,565. To put that in perspective, my 2010 Ford Fusion Sport, with its robust 3.5-liter V6 engine, had an MSRP of $29,545 when new. Back then, that felt like a considerable sum, and frankly, it still does. The escalating prices of new cars, a topic I’ve frequently written about, suddenly became a very personal concern. When you own a car that’s been dependable, requiring only routine maintenance and minimal repairs over the years, and is thankfully paid off, you tend to hope things stay that way. But reality has a way of intervening.

During a holiday trip, my car decided to remind me of its age. On the journey back from visiting family, the engine started overheating. This happened on a Saturday night, and getting it checked had to wait until Monday, a delay that was inconvenient as we needed to return home for work and school. Despite being short-staffed due to deer hunting season in Pennsylvania, the local Ford dealership was able to accommodate me.

The news wasn’t good. A phone call that morning delivered the diagnosis: a failed water pump had caused extensive engine damage, necessitating a replacement. The initial estimate was around $5,400 for a used engine with approximately 120,000 miles, offered with a mere one-month warranty. A second opinion from a mechanic recommended by my father-in-law yielded a similar, albeit slightly lower, estimate.

Faced with this situation, I briefly considered towing the car back to Michigan, hoping for cheaper repair options at home. However, rental truck towing restrictions and limitations in my towing coverage quickly dissolved that plan.

[alt text: A blue Ford Fusion parked on a street, representing the author’s car and the decision to repair it instead of buying a new vehicle.]

Stranded with a broken-down car, we rented a vehicle to get home, leaving the Fusion behind. This bought me time to explore my options. I entertained the idea of buying a replacement. Fortunately, having a second car provided some breathing room, but I knew relying on one vehicle long-term wasn’t practical. Yet, the prospect of car shopping was unappealing. The prices I encountered were immediately discouraging. I was looking at either a significant new car loan or taking a gamble on a used vehicle with unknown history and potentially high mileage.

Leasing seemed somewhat more attractive, but the substantial down payments and recurring monthly costs, not to mention the cycle repeating in a couple of years, weren’t ideal. Ultimately, none of these paths resonated with me. I contacted my father-in-law again and asked his mechanic for another assessment and estimate. The diagnosis confirmed the Ford dealership’s findings: the engine was beyond repair. However, this time, the recommendation shifted. Instead of a used engine, the mechanic suggested a remanufactured engine.

While the installation cost would be higher, this remanufactured engine, sourced from Jasper Engines & Transmissions in Indiana, came with a much more reassuring three-year, 100,000-mile warranty. It essentially offered a fresh start for the engine. This option appealed to me. The final bill amounted to $1,900 for labor and $5,407 for parts, encompassing the engine, spark plugs, and around ten other components that were prudent to replace concurrently. Credit card fees and taxes pushed the total over $7,900. I’m hoping to negotiate a better rate on that charge before a promotional discount expires.

My Fusion isn’t pristine, but it’s in reasonably good shape for its age and mileage (over 164,000 miles), with only minor cosmetic imperfections. Crucially, I’ve driven the vast majority of those miles myself, giving me a complete understanding of its history. In its early years, I was meticulous about car care, which likely contributed to its longevity. While the ride isn’t as smooth as it once was, the car still handles well, and there’s a certain comfort in having it back.

When my dad inquired about the car after the repair, I initially said I didn’t notice much difference. However, since then, I’ve paid closer attention when starting the engine. It sounds strong, robust, and reassuring – like it’s ready for another 164,000 miles. For me, choosing to have my car fixed was the right decision, a practical solution in a market where new car ownership feels increasingly out of reach for many.