Are We Throwing Away Too Many Good Cars?
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Are We Throwing Away Too Many Good Cars?
Working on cars around the Gold Coast, I've noticed something that has got me thinking. It seems that some people put very little value on their older cars, particularly when something goes wrong.
If a car is worth $5,000 to $10,000 and develops a fault, some owners seem quite happy to get rid of it rather than look at what it would cost to repair it.
I recently attended a 2012 Nissan Dualis with a window stuck down. I removed the window regulator and taped the window up temporarily so it could be dealt with later.
I quoted $250 for a replacement regulator, or the customer could source one herself for $200 and I would fit it.
She wasn't happy with the price and felt that because the car was older, the part should be cheap.
I understand that nobody wants to spend money unnecessarily, especially on an older car. But the age of a vehicle doesn't determine what its parts cost. Someone still has to manufacture the part, supply it and get it to the mechanic.
Rather than leave it there, I looked for a cheaper alternative. I found an aftermarket regulator for around $120 delivered, although it would take a few weeks to arrive. I offered to fit it without charging any additional labour, simply to help keep the cost down.
The customer had said she didn't want to spend more than another $100. I had found an option reasonably close to that budget, but I never heard back.
What made the situation more interesting was that she had mentioned wanting to buy a new Toyota Prado.
There's nothing wrong with wanting a new car, but it got me thinking about how people value their existing vehicles and the decisions they make when something goes wrong.
A defect doesn't mean a car is worthless
A vehicle can develop a defect without being beyond repair.
For example, if police or a transport inspector inspect a vehicle and identify a defect, the owner may be issued a defect notice and, where applicable, a yellow defect label. The owner then needs to address the defect and comply with the relevant requirements.
That doesn't automatically mean the vehicle has to be scrapped.
A defect is something that needs to be assessed and rectified. Sometimes the repairs are expensive and the car genuinely isn't worth keeping. Other times, the problem is relatively straightforward to fix.
The important thing is to understand what is wrong before deciding the car is finished.
What is an older car actually worth?
I had a look at comparable 2012 Nissan Dualis vehicles for sale.
One was advertised for $6,700 with around 178,000 km on the clock, almost identical to the 175,000 km on my customer's car. Another example with substantially fewer kilometres was advertised for around $9,900.
These are advertised prices, not necessarily what the vehicles will sell for. Condition, specification and mechanical history all make a difference.
But they do demonstrate that older Dualis models can still have considerable value.
My estimate was that the customer's car could be worth around $5,000 after the necessary mechanical repairs, even with the dent in the rear quarter panel still there.
If she decides to trade it in with unresolved defects, the offer could be considerably lower. A dealer has to account for the cost of repairs, preparation and the risk involved in reselling it.
The owner might accept that offer and move on to another vehicle. But the question is whether that is the most economical decision.
The cost of replacing a car
If you trade in an older vehicle for very little money, you still need to find the money to buy its replacement.
A new Prado is a very different financial commitment from keeping an older Dualis on the road. The purchase price is higher, and costs such as insurance, tyres and servicing can also be higher.
That doesn't mean buying a new car is the wrong decision. Everyone has different priorities and financial circumstances.
But it is worth comparing the cost of repairing the car you already own with the cost of replacing it.
Sometimes the repairs won't make financial sense. Sometimes spending a few hundred dollars, or even a few thousand, can keep an otherwise sound vehicle going for years.
You need to look at the whole vehicle, not just the one part that has failed.
Where do all the affordable cars go?
This is the part that interests me most.
Not everyone can afford a new car or even a newer used car. Many people rely on vehicles in the $5,000 to $10,000 range to get to work, take the kids to school and go about their daily lives.
When older cars are traded in or disposed of rather than repaired, some may eventually return to the used-car market, while others may be dismantled or scrapped.
If a vehicle is mechanically sound apart from a few economical repairs, it could potentially provide years of useful transport for someone else.
We shouldn't compromise safety, and there are certainly cars that are no longer economical to repair. But we also shouldn't assume that an older car is worthless simply because something has gone wrong.
My point
As a mechanic, my job is to identify problems, explain the options and help people make informed decisions about their vehicles.
I'm not saying everyone should keep an old car forever, or that every repair is worth doing.
But before you decide to trade in an older car because it has a defect, find out what it will cost to fix it and what the car could be worth afterwards.
You might find that replacing it makes perfect sense. Or you might find that keeping it is the better financial decision.
A car that needs repairs isn't necessarily a car that's finished. And if we keep throwing away repairable cars, we risk making affordable transport harder to find for everyone.
Have Your Say
Have you ever been surprised by the cost of a car repair, or had an experience you'd like to share? I'd love to hear from you.
Whether you have a question, a comment about this article, a story of your own, or an idea for something you'd like me to cover in a future post, feel free to drop me an email.
I'm always interested in hearing different perspectives and talking about the real-world side of car repairs.
Get in touch — I'd love to hear what you think.