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My Car Is Falling Apart and a New One Costs $45,000. What Do I Do? · Becoming Financially Confident

• 0:37
  You hear it before you even turn the key all the way, that new sound, and your stomach just drops.
• 0:45
  Is this the repair that finally fixes things or just another chapter in a very expensive story?
• 0:52
  Today we're going to walk through that exact decision.
• 0:54
  We're going to have a question from somebody who's just lost a transmission to their car.
• 0:58
  They're experiencing the fourth major repair this year, and we're going to find the dollar line where, where fixing stops making sense even when new cars are averaging.
• 1:08
  Listen to me, $45,000.
• 1:12
  So stay with me today and let's swap the panic for a plan.
• 1:16
  That's what we're going to cover on today's show.
• 1:27
  Hello and welcome to Financially Confident Christian.
• 1:29
  I'm Ralph Estep Jr.
• 1:31
  And I just want to thank you so much for joining me today.
• 1:34
  Today we're going to talk about repair or replace in a year when new cars and repairs both are costing more.
• 1:40
  That's just what they're costing.
• 1:42
  We got a listener question.
• 1:43
  Whose car is nickel and diming her to death.
• 1:46
  And she told me, she said, Ralph, I'm throwing good money after bad.
• 1:50
  But we need to understand something here.
• 1:52
  A car isn't just a car.
• 1:55
  It's how you get to work, it's how you get those kids to school, and it's even how you get to church.
• 2:00
  So we're going to talk about it today and I'm going to give you a path forward of how to make that very difficult decision.
• 2:06
  Now, maybe you're going through a financial decision and you could use a little extra help.
• 2:10
  I would love to hear your question.
• 2:12
  You can reach me by going to financiallyconfidentchristian.com/question We'll put a link right in the show notes.
• 2:19
  But again, that's financiallyconfidentchristian.com/question Well, let's get right to today's listener question.
• 2:27
  Listener writes this.
• 2:28
  My Honda just hit 214,000 miles and I swear it's testing me.
• 2:33
  Ralph In March, it was the brakes, 380 bucks.
• 2:37
  In June, the alternator died on me in a parking lot, another 460 bucks.
• 2:42
  Now my mechanic just told me the transmission is starting to slip and a rebuild.
• 2:46
  Wait to hear this one.
• 2:47
  Ralph is going to run somewhere between twenty two hundred and twenty eight hundred dollars.
• 2:53
  That's almost $3,500 this year alone.
• 2:57
  And I still haven't touched what it'll cost when the AC finally goes out because it's already making a weird whining noise on those hot days.
• 3:04
  Now, part of me Thinks I should just keep paying for repairs because when I looked up replacement cars, even a basic new one is pushing $45,000 now.
• 3:14
  And used cars in decent shape aren't much cheaper than they were a couple of years ago either.
• 3:19
  And that number honestly scares me out of even looking further.
• 3:23
  The other part of me wonders if I've already spent enough this year to have made a real dent towards buying something new instead of pouring into a car that's never going to stop needing something.
• 3:34
  So, Ralph, how do I actually figure out when repairing stops making sense?
• 3:40
  Especially with prices where they are right now?
• 3:42
  They give for anything you can provide.
• 3:45
  Listen, thank you so much.
• 3:46
  And it sounds like you've been in a situation with your Honda.
• 3:50
  Remember when I was a kid, my mom had a Honda Accord, and I think she finally gave up on this thing after 12 or 14 years, because I think it was finally the exhaust system or something along those
• 3:59
  lines.
• 4:00
  I think she told me back then it was like another $2,500 repair.
• 4:03
  And she finally said, I can't do this anymore.
• 4:06
  So I get it.
• 4:08
  It's not just today that repairs are expensive.
• 4:11
  You've really got to make a tough decision, and it's that keep or replace.
• 4:16
  But you got to understand the full picture and not just one bill.
• 4:19
  So I'm going to show you right now how you can make that decision a little more clear.
• 4:24
  So start off by this.
• 4:25
  You got to add up the real number.
• 4:27
  You mentioned how much you've spent, but pull the last 12 months.
• 4:30
  Look at every single repair.
• 4:32
  Look at those maintenance receipts, even the small stuff I've heard people say, well, Ralph, I didn't factor into it.
• 4:38
  Once a month I got to go buy oil because the thing's leaking oil or it's leaking transmission fluid or something like that.
• 4:43
  Find all those receipts, because here's what statistics tell us.
• 4:47
  Struggle my words here today.
• 4:48
  But this is what statistics tell us.
• 4:51
  Most people underestimate these numbers by 30 to 40% because those little bills feed $20 here, $10 there, $15 there.
• 5:01
  Now, in your case, you said the total was brakes and an alternator.
• 5:04
  That coming transmission, that's $3,500 before the year is even over.
• 5:11
  Now, I'm not telling you to do these things out of shame.
• 5:13
  It's seeing the numbers clearly for the first time.
• 5:16
  Because if you want to make a good financial decision, you've got to understand where you are.
• 5:21
  Because you can't make a wise decision off a number you're guessing at.
• 5:25
  Now, here's the second Thing I'm going to encourage you to do, you've got to separate maintenance from car ending failures.
• 5:32
  Maintenance is part of life when it comes to a car.
• 5:34
  I learned that the hard way.
• 5:35
  I think I shared this on the show a couple of weeks ago, that you've got to get those oil changes because my engine seized up and I was in trouble.
• 5:43
  Oil changes, tires, brake pads, those are all part of owning a car.
• 5:48
  They should be factored in to your budget based on how much you drive.
• 5:53
  Now, of course, transmission rebuilds, that's a whole different category.
• 5:58
  And you hope everything else holds up as well.
• 6:00
  So here's the thing I'm going to tell you right away.
• 6:02
  Ask your mechanic directly, he said that transmission is slipping.
• 6:07
  Ask him this, if you fix this, what's next likely to go?
• 6:11
  He might say to you, well, the exhaust system, the engine system, hey, we got a problem here.
• 6:16
  Big flashing red lights.
• 6:18
  This is where I always harp on this routine upkeep keeps a good car running.
• 6:22
  But a major failure changes the whole conversation.
• 6:27
  So you've got to have a difficult discussion now.
• 6:29
  You've got to reprice replacement like it's real.
• 6:33
  Now you said, hey, Ralph, These cars are $45,000 right now.
• 6:37
  That isn't the actual monthly cost.
• 6:39
  So don't let this the math scare you up from the beginning.
• 6:42
  Look at the real payment.
• 6:44
  Look at the increase in your insurance, the registration and depreciation.
• 6:48
  One things I love are what they call certified used cars.
• 6:51
  These are two to three years old and they often solve reliability without that full car price.
• 6:56
  Now again, you've got to be a buyer beware on these things.
• 7:00
  But Compare that to $3,500 repairs that you just spent in the last 12 months to an actual payment, whether it be used or slightly used.
• 7:08
  And that certified new.
• 7:10
  You can't compare one repair bill to one car payment.
• 7:14
  You got to compare the whole year both ways together.
• 7:18
  But you've also got to put a dollar value on reliability.
• 7:21
  We talked about this.
• 7:23
  Missing work over your car not starting will cost you real money.
• 7:27
  That's not just an inconvenience.
• 7:28
  That could be a major problem to your finances.
• 7:31
  Because if you can't to work, you don't get paid.
• 7:34
  Late pickups, Ms.
• 7:35
  Church Services, canceled plans.
• 7:38
  All those things add up stress that don't show up on receipts.
• 7:43
  Ask yourself this question.
• 7:44
  How many times has the car already let you down this year?
• 7:49
  Because, friend, listen, a dependable car isn't just transportation.
• 7:53
  It's peace of mind.
• 7:54
  It's peace of no anxiety that you can drive.
• 8:00
  So here's the key thing, though.
• 8:01
  You got to start to plan before the next breakdown.
• 8:04
  You've already said, the mechanic's telling you, hey, this could happen.
• 8:07
  Don't wait until you're stranded on the side of the road.
• 8:11
  Right now.
• 8:12
  Separate savings accounts this week.
• 8:13
  Even if it's $100 a month to build that cushion, that bigger down payment matters more when prices are where they are.
• 8:20
  It's going to help you reduce that interest.
• 8:23
  So start looking at reliable used options now while you're still working to get the car to the shop to work with.
• 8:30
  The best time to plan for your next car is before this one forces your hand.
• 8:36
  Now, I want to go a little deeper here.
• 8:38
  Something you said.
• 8:39
  You've been telling yourself that fixing this car one more time is the responsible thing to do.
• 8:44
  And I hear in your voice some part of you is exhausted from doing the responsible thing over and over with nothing to show for it but another bill.
• 8:53
  And now the number on a replacement feels so much bigger, and it feels easier to just look away from it entirely.
• 9:01
  But here's the thing that faith does promise us.
• 9:03
  It promises that God gives us wisdom to people who wisely ask for it and honestly ask for it.
• 9:09
  And he cares about the practical things, those unglamorous decisions, not just those big spiritual ones.
• 9:17
  But here's what faith doesn't promise us.
• 9:20
  It doesn't promise us that our cars aren't going to break down again or that that price tag out there is going to feel less overwhelming.
• 9:27
  Proverbs 27, 23.
• 9:29
  I use it here on my cow farm.
• 9:31
  Know the state of your flocks.
• 9:33
  Put your heart into caring for your herds.
• 9:38
  How many families go through this season just like this?
• 9:41
  Back in the day, livestock was all about how you sustained over the winter months.
• 9:46
  It's kind of like a car today.
• 9:48
  You got to know the real condition of what you own without flinching in it.
• 9:52
  That's where stewardship starts.
• 9:55
  So today, know the real repair total and the real replacement cost.
• 9:59
  Not some scary headline, not some number that you've been avoiding.
• 10:03
  And whatever you decide, decide with clear eyes instead of fear, because that's what stewardship actually looks like.
• 10:13
  Today's not about being dramatic.
• 10:14
  It's doing math that most people avoid.
• 10:17
  That fear, that scariness of what's going to happen, makes it bigger than it is.
• 10:22
  But knowing the truth, knowing the results, knowing the math, makes it more manageable.
• 10:28
  And you're actually closer to an answer than you might think.
• 10:30
  So here's today's win And I encourage anybody to do this.
• 10:33
  This is something you should be tracking anyway.
• 10:35
  Pull every repair and maintenance receipt from the last 12 months and add it up.
• 10:40
  Check your bank, check your credit card.
• 10:42
  Make sure that you've got all those things accounted for, even the small things, the oil changes, the tire rotations, all that down.
• 10:49
  Write that total somewhere that you'll actually see it again.
• 10:53
  Because it's not about buying a car today decision.
• 10:55
  It's just an honest number to work with.
• 10:58
  Because as I said earlier, you can't compare options if you still don't know exactly what it already costs.
• 11:05
  Which leads me to today's Bible verse that I've already mentioned.
• 11:07
  Proverbs 27, 23.
• 11:10
  Know the state of your flocks and put your heart into caring for your herds.
• 11:15
  You're at a decision point right now, but you got to know the numbers.
• 11:20
  And honestly, the Bible verse is telling us.
• 11:22
  The verse starts with knowing, not guessing, reframing this caring for what you own.
• 11:28
  Do those maintenance records pay attention?
• 11:32
  It's not just about spending money.
• 11:34
  Know the state of your flock.
• 11:36
  Know where you are right now.
• 11:37
  How about we pray together right now?
• 11:38
  Heavenly Father, thank you for carrying this listener.
• 11:42
  And the real weight she's carrying every time her car makes a new sound.
• 11:45
  Lord, you know she's tired.
• 11:47
  She's trying to make a wise decision without a clear picture.
• 11:50
  And I ask that you would give her that clarity today, Lord.
• 11:54
  Help her to gather the real numbers without flinching or minimizing them.
• 11:57
  And help her to find peace in that comparison of repair versus replace instead of that decision fatigue that she's living in.
• 12:06
  Lord, protect her and her family on the road.
• 12:08
  Meantime, remind her that asking this question is already good stewardship and it's not failure.
• 12:14
  We ask this in Jesus name.
• 12:17
  Amen.
• 12:18
  Well, friend, you came in here guessing and you're leaving with an actual process.
• 12:22
  And again, it's not about the car, is it?
• 12:25
  It's deciding from a place of clarity instead of dread.
• 12:28
  So here's your takeaways for today.
• 12:30
  Add up those real 12 months repairs and maintenance totals.
• 12:34
  Separate that routine maintenance from those major car ending repairs and price that replacement as a full year of cost, not just one payment.
• 12:42
  And put a value on that reliability and what those breakdowns cost.
• 12:47
  Start that plan.
• 12:48
  Build those savings before the next thing breaks.
• 12:51
  It's so much easier to plan ahead than to react when something happens.
• 12:55
  Now, maybe you're facing a financial situation yourself and you could use a little.
• 13:01
  I would love to offer that counsel to you.
• 13:03
  You can reach me by going to financiallyconfidentchristian.com/voicemail we'll put a link right in the show notes, but again, that's financiallyconfidentchristian.com/voicemail thank you so much for joining me today as I always encourage you stay financially savvy.
• 13:20
  May God bless you and you have a truly great.
• 13:32
  We ride.