At this point it is a simple cost comparison analysis. Meaning we never put more money into a vehicle then it is worth. So in your case, this vehicle could be worth anywhere from $2,000.00 to $5,000.00 depending on model and how it is equipped. That means we don't put more than that amount into in a given year. If you want to look at it on a two year basis or a 6 month basis that is up to you and your financial situation. Basically whatever you can afford without it breaking the bank. This does not include cost of maintenance. That is just a given that you are going to spend on any vehicle you own so this is only repairs.
From what I am seeing, you would be fine putting a cat in it if that is what it needs to fix it and keep it on the road. However, if something else happens that puts you over this then you will want to look at cutting your losses.
The idea behind this is let's say your vehicle is worth $2,000.00 and you make a $600.00 repair. If you sold the vehicle after making the repair you would leave with $1,400.00 net or if you sell the vehicle without doing the repair, you would probably get around $1,400.00
If you kept it and 6 months later it needed another $2,000.00 worth of work, then you would not do this repair because you would not be able to sell it for more than $2,000.00 and you now have $2,600.00 into it. In other words, doing these repairs does not add to the value so at some point it is better to sell it as is then repair it.
I don't think you are there yet.
Saturday, February 29th, 2020 AT 5:38 PM