I drive a lot of miles, so I look at it more as minimizing the cost/mile.
So while it may cost more to fix a car than it's current value in the market place, what is the cost to replace that car?
If the car is in good condition and well maintained, I don't see a problem with spending $1500-$2000 on a rebuilt tranny if you can drive it another 6-12 months.
I think the argument about not repairing the car once the cost of a repair exceeds the value of the car.
One thing in favor of that argument is that is a fixed, non-ambigous strategy that requires little prediction.
However, I think it is more costly, especially when buying new cars.
I've done pretty well buying used TRANSPORTATION (certainly not enthusiast vehicles) for under $3K and driving them for about 3 years and about 75K miles and then putting them up for sale.
The old 87 LeSabre I purchased for $1K was $0.142/mile to drive for ALL costs, purchase, insurance, fuel, maintenance and repair.
To buy somethink like a Mazda Protege5 for $15K and drive it twice as long 150K miles, my purchase cost for the vehicle is $0.10/mile before I buy gas, tires, insurance, etc.
So while the value of the car in the marketplace is not high, there is a value as a transportation appliance, and putting a few grand into a paid-for car is almost always cheaper than buying a new one.
Heck, even my 1994 Geo Prizm that I purchased on 4/12/03 for $2500 is down to $0.363/mile after almost 5 months and about 9000 miles. But that includes the $2500 to purchase, another nearly $200 for license, tax and title, and maybe $150 in maintenance to get started (new fluids, plug wires,cap, rotor, plugs, fuel and air filters, etc.)
By the one year anny. this thing should also be around $0.14/mile give or take a bit.
TB
