What to Do When Car Repairs Cost More Than Value

It’s a situation many car owners dread — you take your vehicle to the mechanic, only to find out the repair bill is higher than what your car is actually worth. Maybe it’s an old Holden that’s served you well, or a Toyota that’s just hit the end of its run. Either way, it’s a tough call: do you pour money into fixing it, or is it time to move on? Let’s break it down in simple terms so you can make the smartest decision for your wallet and peace of mind.

How Do You Know When Repairs Aren’t Worth It?

The rule of thumb is pretty simple — if the repair costs are close to or exceed your car’s market value, it’s usually not worth fixing. For example, if your car’s worth $2,000 and the mechanic quotes you $2,500 for repairs, you’re essentially throwing money into something that won’t give you that value back.

To check, compare:

• Repair estimate vs. car’s current market value (check RedBook or CarsGuide for a quick valuation).
• Upcoming maintenance needs — if it’s likely to need more work soon, the costs will just keep stacking up.
• Safety and reliability — if it’s breaking down often, it’s not just expensive, it’s inconvenient and risky.

Why Do Repair Costs Sometimes Go Beyond Value?

Modern cars are complex, with parts and labour costing more than ever. Older vehicles, especially those out of warranty, tend to need frequent repairs. And in some cases, replacement parts are hard to find — especially for imported or discontinued models.

If you’ve got issues like a blown transmission, head gasket failure, or electrical system faults, the labour alone can eat up thousands. These “big-ticket” repairs often push the total cost higher than the car’s resale value.

Is It Better to Sell or Scrap the Car?

When your car’s not worth repairing, you’ve got two main choices — sell it or scrap it.

1. Sell it privately – If it still runs, you might get a few hundred or a thousand dollars from someone handy with cars. But selling privately can take time, and you’ll have to deal with inspections, negotiations, and paperwork.
2. Trade it in – Dealers may offer a low trade-in value, often much less than what you could get elsewhere.
3. Sell it for cash to a car removal company – This is often the quickest and most hassle-free option. Cash for cars services in Australia buy old, damaged, and scrap cars in any condition. You can get instant cash — sometimes up to $9,999 — and they’ll usually handle free towing too.

How Does a Cash for Cars Service Work?

It’s a straightforward process designed to save you time and effort. Here’s how it typically goes:

1. Get a quote – Call or fill out an online form with your car’s details (make, model, year, and condition).
2. Accept the offer – If you’re happy with the price, you can schedule a pickup that suits you.
3. Free car removal – A tow truck comes to your location — whether it’s at home, your workplace, or a mechanic’s yard.
4. Instant payment – You receive cash or an instant transfer on the spot before your car is taken away.

This option makes sense when the repair costs are too high or when your car isn’t roadworthy anymore.

What About the Environmental Impact?

If you’re worried about waste, there’s good news. Licensed car recyclers and auto wreckers follow eco-friendly methods. They safely drain fluids, remove reusable parts, and recycle metal — meaning very little actually goes to landfill.

By selling your car for recycling, you’re not just saving money, you’re helping reduce pollution and metal waste. It’s a responsible way to say goodbye to an old vehicle.

Are There Any Exceptions to Fixing a Low-Value Car?

In some cases, yes. If the car has sentimental value or rare collector potential, you might choose to repair it for personal reasons. Or, if it’s only minor cosmetic damage (like a dented panel or faded paint), a small repair might still be worth it.

But for most daily drivers, once repair costs exceed about 70% of the car’s value, experts recommend moving on.

What’s the Best Way to Get the Most Money for a Non-Repairable Car?

To maximise what you get, follow these tips:

• Remove personal items and check the glove box and boot before pickup.
• Have your rego and ID ready for a smooth handover.
• Compare offers from a few local cash for cars companies — prices can vary.
• Cancel your registration and claim any unused insurance or rego refund from VicRoads (if you’re in Victoria).

These small steps can put a few extra dollars back in your pocket.

When repair costs outweigh your car’s value, it’s usually a sign it’s time to let go. Holding onto a vehicle that constantly breaks down can drain your savings and your patience. Selling it to a cash for cars service is an easy, practical solution — you clear space, get quick cash, and avoid ongoing repair headaches. Sometimes, the smartest fix is simply moving on to something better.

 

If you are in Meadow Heights, and looking to sell your car, this is the best way to find us.

Northern Car Removal

1/26 Acacia St, Glenroy VIC 3046

0437 773 905

www.northerncarremoval.com.au