Last week I was driving home after finishing the grandkids’ school run when an amber engine warning light flicked on. Being the type of guy I am, I didn’t wait around wondering about it. I drove straight to my local mechanic to get it checked out.
They plugged it into the diagnostic system and gave me the likely verdict: the timing chain was starting to stretch. Nothing was confirmed yet, since they wanted to do a proper mechanical inspection first. But they gave me a ballpark figure in case it was: $1,500.
I booked in for the inspection and drove home turning the number over in my head. The car is a 2017 with 87,000 miles on the clock, realistically worth about $8,000. Is it sensible to put nearly a fifth of the car’s value into a repair, on a car that’s already well into middle age by mileage? By the time I pulled into the driveway, I’d talked myself into a completely different plan: forget the repair, go and find a replacement.
So that’s what I did. I spent the afternoon test driving two-year-old cars, and I won’t pretend I wasn’t enjoying myself — the tighter steering, the new-car smell, the sense of a fresh start. By evening I was in full planning mode.
I was already thinking about where the cash would come from, and how to structure the withdrawal to keep the tax hit as small as possible. In my head, the decision was more or less made. And then, somewhere between dinner and bed, the enthusiasm drained away as quickly as it had arrived.
I found myself thinking about the old saying I’d heard more times than I could count: the most financially sound choice is almost always to stick with the car you already have. Repairs feel painful in the moment because they’re concentrated, one bill, one number, right in front of you. But they’re almost always cheaper than the alternative. A $1,500 fix is a rounding error next to the depreciation, sales tax, insurance bump, and the lost investment returns from pulling cash out of the market to buy a “new” car, even a two-year-old one.
I hadn’t actually run those numbers when I was standing in the dealership car park feeling pleased with myself. I’d just felt the pull of the shiny option and let the spreadsheet catch up afterward.
What strikes me looking back is how fast the whole cycle happened. Inspection booked, verdict feared, replacement chosen, financing half-planned, and then reversed, all within about twelve hours. Nothing about the underlying facts had changed in that time. The car was the same car, and the $1,500 estimate was the same estimate.
What changed was that I’d let a moment of anxiety about an unknown repair bill talk me straight past the boring, obvious answer and into a much bigger, much less obvious decision.
I don’t know yet what the mechanic will find. Maybe it really is the timing chain, maybe it’s something cheaper, maybe it’s something worse. But whatever the number turns out to be, I suspect I already know what I’m going to do with it. Pay the bill, keep the car, and let it keep doing its job for a while yet.
Memo to myself: stop comparing repair bills to the car’s value. Compare them to the cost of replacing the whole damn thing—tax, insurance, and the market returns I’d sacrifice along the way. That $1,500 bill I was sweating over? It’s not 20% of an $8,000 car. It’s about 4% of a $35,000 replacement. Suddenly it doesn’t look like a waste. It looks like a bargain.
Mark…having spent decades in auto sales finance (the bank side, not the dealer side) I can assure you… the 4% number, NOT the 20% number…is the Right Answer.
I have had to deal with this twice in the last 6 years. My bride’s car is a 2006 Chrysler touring convertible. She loves this car. It’s worth is probably less than $2000 however, in the past six years, I’ve put $1800 in a front end and $1500 and other repairs. Meanwhile, we haven’t had a car payment on her car since 2010, when it was paid in full.
it has 79,000 miles on it and you should see the smile on her face when her top is down.
For those in the camp that autos are simply transportation tools and among the worst investments ever known to man; the winning score goes to those who spend the least money on them (all in) in their human lifetime. This includes the purchase, registration etc. fees, annual taxes, insurance and of course, maintenance.
For those who are of this mind set, MAINTENANCE is the operative word. It is where much of the leverage is to win the game of reducing your lifetime spend on these abysmal investments.
If you are among those who want to minimize your lifetime spend on autos, here are some thoughts on automobile MAINTENANCE:
Another issue I learned from my brother in law who ran the parts department in a major leasing company. He told me dealerships have a repair “book” that tells them how long it should take to perform a repair. If it is completed in less time, they still charge you what the “book” lists. Ah, no thanks!
David, I’m definitely picking up the vibe that you’re not a fan of dealerships 😉. In the UK, most manufacturers now offer a full, comprehensive warranty stretching towards the seven or eight year mark. Unfortunately, that means your relationship with the dealership gets extended for a lot longer too. The law does allow you to use an independent workshop without losing your warranty, but most people are too nervous to do so — and end up paying top dollar for servicing for many extra years as a result.
Here is an example of why going to a dealer for more than warranty covered interventions is a bad idea. We have a Toyota Crown Signia (bought it in fall of ‘24) it came with “two years of “free” maintenance. I brought it in recently for an interval service.When you drive in there is a device that the dealer says checks your alignment. I drove in not a peep about an alignment. About an hour later I get a text, yes, not a service technician saying I needed an alignment. I spoke with the service rep and said I had had one the last service interval, but they said I had not (when I returned home and I checked my service papers I had an alignment performed at inspection because I could tell it was off).
One other story about dealership service. We owned a ‘14 Subaru Forrester. There was a class action settlement on them because they burned oil (more than a quart per 5K oil changes). They had to replace the engine within the first 100K if it burned more than X oil within a certain number of miles. We failed to qualify earlier on when we first did the test. At 90 K I decided to have it tested again. They changed the oil. When I got home I drove the vehicle into our garage (a flat surface) I checked the oil level to make sure it was filled correctly. Sure enough they had over filled it. I called the service manager and brought the Forrester in for them to check and they confirmed. I said the manager on the oil change either they were trying to pull a fast one (by later showing the correct oil level after the test mileage), or their technician was incompetent. The manager came out an listened to the car and said there was a knock in the engine and she would see if Subaru would replace it and they did.
Also one time there was a recall on the car. They serviced it and said three other issues needed to be addressed. I brought it to my regular mechanic down the street. He said let me guess what they said you need X,Y,Z. He said they tell everyone that. Needless to say those “problems” never needed to be addressed.
David,
The Subaru engine oil consumption caper is literally a viable text book example for Business Schools on how NOT to handle a corporate crisis. Subaru is a “ no go” for many (including me) as a result of that reputation hit. They still have a loyal following though.
Your Crown Signia is a very nice car. Very odd the dealer would even try to sell an alignment for such a young car.
You and other Toyota/Lexus fans may like the YouTube channel “ The Car Care Nut”. He is a former dealership mechanic who opened his own independent shop. He tells it like it is regarding how dealer service shops operate. He covers many other general interest topics across brands as well and does not cut Toyota any slack when it is deserved. In fact he recently did a very positive review of the Crown Signia.
Ha Ha Dunn,
Usually I would not even consider a first model year vehicle, HOWEVER: 1) this is a Toyota, and 2) we watched a review of the vehicle by The Care Care Nut, and that convinced us it was OK to purchase it. Main selling points were: 1) most of the components, chassis, hybrid engine, and dash layout are the same as several other Toyota models, and 2) it is assembled in their Lexus plant in Japan.
PS, we love it!
Excellent information, thanks for taking the time to put it together. I’ve used the same independent mechanic for years, and honestly, it never occurred to me to tell him I wanted to keep th