The Recession Question: Repairing versus Buying?

The economy is down, the automotive industry is trying to survive, and the good news is that the price of a vehicle has never been better. Some people are taking advantage of these savings and replacing all their fleet and/or personal cars. Others rather weather the recession by repairing their existing vehicles. So, that begs the question, is it better to buy now or to repair?

First of all, if you’re financially able to do it, as a favor to the auto industry and the economy please…PLEASE consider buying. Not only will you be able to get an amazing deal but you’ll also be part of the solution and helping the auto industry get out of this mess. If you rather wait and repair the vehicles that you currently have, think about this.

The four most expensive vehicle repairs are related to major engine, transmission, rear axle, and electronics problems. If these are not the current issues with your car, then it MAY be ok/practical to keep or “nurse” you car until you are in a better financial position to purchase a new one. Of course, if you’ve been neglecting certain repairs and then end up with a laundry list of items, you may want to check the blue book value of your vehicle and make a decision. You can also contact us or a friend who has automotive knowledge to help you decide.

So, if you just got a bonus and you’re trying to figure out what to do with the extra cash—consider buying a car. Prices have never been better. If you need a small repair like replacing a starter or radiator—go ahead and make a trip to the mechanic.

Do I hybrid or not? What is a full vs mid-hybrid vehicle?

Ah, the question I get on a weekly basis. You may not have known the difference because you’re just now in the market for a new car. However, before you think about purchasing a hybrid vehicle, consider reading this post.

First of all, one of the most important things to understand is if you are dealing with a full or mid hybrid. A full hybrid has both a gas engine and electric motor. As a result they work in combination and can work in unison. Mid-hybrid vehicles have a gas engine and electric motor too. However, the mid hybrid’s electric motor supplements the gas engine’s load and, as a result, creates a more fuel efficient vehicle. So the next question, which is better? Full or mid? The answer is, if you care about fuel efficiency—both the full and mid hybrids are basically equally efficient.

So, let’s talk about this further—–is getting a hybrid worth it? I always look at this from the consumer’s perspective. If you are a consumer narrowly focused on purchasing a hybrid to accelerate the trend of fuel-efficiency, despite the costs, then I think you are the right customer for this type of vehicle. If you are a consumer interested in saving money, then I personally think you should wait –the technology is not quite there yet.

If you compare the current pricing of hybrid cars versus gas vehicles, given the average life of a vehicle, the consumer generally will not be able to recoup the difference. Also, repairing a hybrid is much more expensive and often an element that is not considered during the purchasing process. Have you asked how expensive it will be to replace the battery of a hybrid?

I am personally excited about the trend in electric cars and more fuel efficient vehicles, but making this purchase at this given time depends on what type of consume you are. So, do you hybrid or not? That all depends on you….