My big choice: a new car payment or fixing my old one for good

My 2012 sedan needed a $1,200 repair for the transmission. The shop said it was the last big fix it would likely need for years. My other choice was to trade it in and get a new car, which would mean a $350 monthly payment for the next five years. I sat with a calculator and saw that the repair cost was equal to about three and a half months of a new car payment. I decided to fix the old car. That was nine months ago, and I've just been putting that $350 into my savings account each month instead. It feels like a huge win to not have that debt hanging over me. Has anyone else chosen a big repair over a new purchase and been happy they did?

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2 Comments

price.logan6mo ago

That math is so smart... turning a car payment into a forced savings plan. You basically gave yourself a raise by avoiding the new debt. Future you is gonna be thrilled with that growing bank account.

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wesley7616mo ago

Future me better be thrilled, because current me is still driving a car with a cassette player. At least my savings account sounds better than my speakers.

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