Scrap or Save? When to Give Up on Your Car.

Every car will die eventually. It's a sad fact of life. Some will go out in a literal blaze, after being totaled in an accident. Others will age gracefully, coddled by their owners until they become true classics. The rest will last five or ten years as a primary vehicle, but then repairs will start being required more and more often, needed replacement parts will be increasingly difficult to find, and reliability will be come an issue - you'll find yourself stalling at lights, and having to spend extra time getting the engine started in the morning.

If you have a car that has a history of being problematic, or in auto accidents, making the decision to cut your losses and consign it to the scrap yard is relatively simple. For most of us, however, the decision will be more difficult, especially if the car in question was a first - first car of our own, first new car, etc. There are no hard and fast rules about when to give up on your car, but there are some guidelines, and most of them have to do with calculating the cost of repairs and comparing it to the value of the vehicle in question.

When to Repair:

Even if your car is over seven years old, it may be worth fixing. Generally, repairs are the best option if the following conditions apply:

• If the total number of miles on the car is less than 70,000 and the repairs will cost less than 30% of the fair market value.
• If the car is over seven years old, and has less than 80,000 miles on it, and repairs will be less than 50% of its value.
• If the car is over fifteen years old and necessary repairs will cost less than 80% of the car's value. At this point, it may well be valuable to a collector and you might consider that rather than scrapping it.

When to Scrap:

Fixing your car may not be worth the trouble in these circumstances:

• If your car's mileage has passed the 100,000-mark and repairs will be greater than 50% of the market value, or
• If repairs will exceed 60% of the value and your car is not a collectible model.

With either scenario, it's important to keep a tally of the repairs and how they affect the value, especially as minor issues - leaks, bad hoses, broken belts - happen more and more often. Every time you fix a problem over and above normal maintenance (tires, shocks, oil changes), deduct half of the total bill from the value of your car, and use the revised number to help determine if the next repair is worth it.

A Paid-For Car is a Beautiful Car

If your car falls into the category of "worth fixing" and you still think about scrapping it, consider the cost of repairs in a single year as compared to a year's car payment on a new car. Yes, a newer vehicle is likely to be more reliable, but there is special beauty in a car that is owned free and clear. In addition, your cheap car insurance rate may go up if you finance a new car.

When Deciding to Scrap Your Car

When you do make the choice to scrap your car, be certain to check your local guidelines, and be aware that you can't just drop a car off at the dump. First, talk to your mechanic. Your car may have working parts that can be sold as replacements for someone else's vehicle. This applies to everything from engines to hubcaps. Then, contact someone who specializes in scrapping vehicles - there are listing in the yellow pages and their online equivalents - and have them direct you through the process.

Selling a car for scrap can be an emotional event especially if you've had it a long time, but if the repairs are costing more than the car is worth, the wisest choice is to cut your losses and invest your money in a new vehicle.

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