To Repair or to Replace – That Is the Question
AAA offers advice for motorists debating costly major repairs vs. new vehicle purchase
With the downswing in the economy and the country in a recession many motorists have delayed the purchase of a newer vehicle. But as existing vehicles continue to age, major components can begin to fail and leave motorists facing a tough decision — invest in costly repairs to an older vehicle or the purchase of a newer one.
“Repairing major vehicle components such as the transmission or engine can run upwards of $2,000 or more,” said John Nielsen, director, AAA Approved Auto Repair and Auto Buying. “When faced with the decision of whether to invest in the repair of a current vehicle or purchase a newer one, motorists need to consider a number of factors.”
Comparing costs
It is typically less expensive in the long run to repair the vehicle already owned rather than purchasing a newer one. Financing even a $2,000 repair typically results in lower payments (or similar payments for a shorter time) than those incurred when purchasing a newer vehicle.
If motorists are still paying off a car loan on an existing vehicle, they need to take a careful look at the equity they have in it. If they are ‘upside down’ in the loan, meaning they owe more than the current value of the vehicle, purchasing a newer vehicle could mean not only financing its purchase price but also the negative equity from their current vehicle.
The 50-percent rule
After receiving the estimate of a major repair, consider the ‘50-percent rule.’ When the cost of a needed repair approaches 50 percent of the vehicle’s value, it is time to seriously consider replacing it. Current trade-in and retail values of vehicles can be determined using tools available in the Auto Buying section of AAA.com.
Reliability and maintenance history
The decision to make a major vehicle repair should always be based on knowing the vehicle is otherwise in good condition and likely will not require additional major repairs anytime soon. Consider the reliability of the vehicle so far. If it has a history of problems, it could indicate there are more costly repairs still to come.
The best way to know a vehicle’s condition is by maintaining it on a regular basis and using the same repair shop. If a repair shop knows the service history of a vehicle, consumers can look to its technicians for guidance on when their vehicle likely will need major repairs. Keep in mind that the best time to make a repair or replace decision is always before the vehicle breaks down. A car with its transmission scattered by the roadside has little or no trade-in value.
“Following the vehicle manufacturer’s maintenance recommendations can greatly increase the lifespan of a vehicle,” Nielsen said. “It’s the difference between paying $100 now to replace a part before it fails or being faced with a $1,000 repair bill later when the part fails and causes major damage to other vehicle components.”
Cosmetics
The cosmetic condition of a vehicle can greatly affect its value and a motorist’s desire to hold on to it. Motorists should take a critical look at their vehicle for signs of a wear and tear and evaluate how important their vehicle’s cosmetics are to them. For someone who frequently drives business associates, vehicle appearance might be a higher priority than it is to others.
Nicks in the paint that are starting to rust or snags in the upholstery might not seem like a big deal now, but they can grow into larger cosmetic issues that can depreciate the value of a vehicle. If opting to hold on to a vehicle, be sure to address those little things to prevent them from getting worse.
Lifestyle
Changes in lifestyle can be a large factor in changing vehicles. Family size, commute length, recreational usage and business needs are all legitimate reasons to consider purchasing a newer vehicle that is better suited to a consumer’s driving routine. Changes in priorities can also be a factor, such as the desire for a more environmentally friendly vehicle or one with more safety features.
Outside factors
Several outside factors may impact the decision between repairing and replacing a vehicle such as reduced pricing and special offers from manufacturers; the ability to secure financing; and other upcoming expenses. A vehicle that could become an appreciating classic sometime down the road also might be worthy of extraordinary repairs and maintenance.
“Given proper maintenance and an occasional repair, modern cars are highly reliable and can be safely driven far beyond 100,000 miles,” Nielsen said.
If deciding to go ahead with a major repair, be sure to use a qualified and trustworthy auto repair facility. AAA offers a free public service to assist consumers in their search for a quality auto repair shop. AAA Approved Auto Repair facilities have met stringent standards for customer service, quality and expertise. A listing of AAA Approved Auto Repair shops is available at AAA.com/repair.
As North America’s largest motoring and leisure travel organization, AAA provides more than 51 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.
First North American Antenna Enables Next Phase in ALMA Observatory
Astronomers celebrated today the formal acceptance of the first North American antenna by the Joint ALMA Observatory. ALMA, the Atacama Large Millimeter/submillimeter Array, is a gathering armada of short-wavelength radio telescopes whose combined power will enable astronomers to probe with unprecedented sharpness phenomena and regions that are beyond the reach of visible-light telescopes. The observatory is being assembled high in the Chilean Andes by a global partnership.
The 12-meter-diameter antenna delivered today is the first of twenty-five being provided by North America’s ALMA partners, whose efforts are led by the National Radio Astronomy Observatory (NRAO) and supported by the U.S. National Science Foundation (NSF) in cooperation with the National Research Council of Canada and the National Science Council of Taiwan. The antenna was manufactured by General Dynamics SATCOM Technologies.
The acceptance comes just weeks after the first ALMA antenna, produced under the direction of the National Astronomical Observatory of Japan on behalf of ALMA’s East Asian partners, was handed over to the observatory.
“These ALMA antennas are technological marvels,” said Thijs de Graauw, ALMA Director. “They are more precise and more capable than any ever made. Their performance in the harsh winds and temperatures of our high-altitude site bodes well for the observatory’s future.”
A single 12-meter antenna’s dish is bigger than the largest optical telescope’s reflective mirror, but to match the sharpness achieved by an optical telescope, a millimeter-wavelength dish would have to be impossibly large, miles across. ALMA will combine signals from dozens of antennas spread across miles of desert to synthesize the effective sharpness of such a single, gigantic antenna. The process involves analysis of the ways in which the signals coming from each antenna interfere with one another, and is called interferometry.
“This is a major milestone for the ALMA project. With two antennas now on site, we begin the real work of combining signals from them. We are advancing toward ALMA’s ultimate goal of surpassing by tenfold existing technology in this area,” explained Philip Puxley, the NSF’s ALMA Program Manager.
ALMA officials expect the pace of antenna acceptance to accelerate. “We have nine (North American) antennas on site already,” said Adrian Russell, NRAO’s ALMA Project Director, “and following handover of Number Three we plan to get one through the test procedure each month. Additional North American antennas will be arriving in Chile at a rate of one every two months, and General Dynamics is on track to complete delivery of these systems within days of the original schedule.”
When completed early next decade, ALMA will have a total of sixty-six antennas (with the option of further expansion) provided by partners in North America, Europe, and East Asia. The first European antennas, produced under the auspices of the European Organization for Astronomical Research in the Southern Hemisphere (ESO) are scheduled to begin arriving early this year.
The ALMA Project is a partnership between the scientific communities of East Asia, Europe and North America with Chile.
ALMA is funded in North America by the U.S. National Science Foundation in cooperation with the National Research Council of Canada and the National Science Council of Taiwan. ALMA construction and operations are led on behalf of North America by the National Radio Astronomy Observatory, which is operated under cooperative agreement by Associated Universities, Inc.
Source: National Radio Astronomy Observatory; National Science Foundation