Everyone is always so hung up on the value of the car when it comes to repairs.
The value of the car is only what someone would pay for it. If you're planning to keep it, then that value is only an insurance number.
A car is potentially worth a lot more if you keep it, especially if the car is low maintenance. With electric cars you trade some value up front (they are typically more expensive) to reduce the maintenance over the long term. But you will still have maintenance like replacing batteries when they go. You saved the cost of filling it up with gas and changing oil for going electric. So the smart move would be to treat your car like you're still sort of filling it with gas and changing oil and put that money towards the cost of new batteries when the time comes.
Every car has maintenance costs. With electric you just sort of push it down the road a ways when it comes to the battery.
You could get a new car... sure.. but now you have a car payment, or you may have thrown a bunch of cash at the problem. But if there's nothing wrong with your car except maintenance then put that money into the maintenance. Otherwise you're just pretending to care about the environment with your electric car that you probably tell yourself is cheaper (due to gas and oil changes) and better for the environment.
This is quite different from maintenance. You already pay upfront to have lower maintenance costs, so the gas/oil/maintenance savings argument do not apply here, I think.
You usually do not throw the car when it requires a major repair, but when the car is worth 2k with dead batteries to scrap and the replacement of the batteries costs 10k, while you can find a car that is OK to drive for 9k, it is considered uneconomical to repair. Because if you can just sell the car for 2k, pay 9k for another car, you are only losing 7k in the process. Replacing the battery costs 10k - the opportunity cost of replacing the battery is 3k.
This is why a car that requires an engine replacement (for an ICE car) is simply scrapped for parts instead of putting a new engine.
Now, this probably isn't for the average person, an independent dealer or a resourceful (and careful) car owner could easily replace batteries much much cheaper.
you're right, the value of the broken car itself is irrelevant to whether it is economic to repair. what is relevant is the cost of a reasonable replacement. if it costs $2000 to to fix the car, you might be better off scrapping it and buying a different used car with that $2000 that actually runs.
If the repair costs $2000 to fix the car, and it's otherwise fine, then it's worth it over another car so long as it is still getting the job done.
Where I would agree with you is when the car is no longer safe, either from a structural standpoint, or due to safety standards improving drastically. In those types of scenarios it is worth buying a new car simply for those reasons.
Maintenance has to be done regardless of what kind of car you have. If you're skipping those steps then it'll come back to bite you. I think people just don't like maintenance because they think it should be less than the value of the car. Which is simply not the case. Cars aren't investments (typically) in the sense that their value rarely goes up. It goes down, almost always.
Maintenance is done to keep the vehicle operating properly, reliable, safe, and in good condition. Sometimes those maintenance steps may increase it's value slightly
But here's an example. Say you have a car. It's worth $1000 but is otherwise in fine condition. It runs great, it's safe, it is rust free and structurally sound. Except it needs to tires. Lets say those tires cost $750 because you also have to buy a new wheel and maybe the tires are harder to find. Do you go "well... that's too much... I'm just going to throw the car out and get a new one"
If you do, you're doing it wrong. The same is true for battery maintenance. If the car is otherwise fine, it's like buying any other maintenance. You may not LIKE that you have to pay for maintenance, but it's part of vehicle ownership.
> But here's an example. Say you have a car. It's worth $1000 but is otherwise in fine condition. It runs great, it's safe, it is rust free and structurally sound. Except it needs to tires. Lets say those tires cost $750 because you also have to buy a new wheel and maybe the tires are harder to find. Do you go "well... that's too much... I'm just going to throw the car out and get a new one
I think the same logic applies? $750 is way too low to have a good chance at finding a replacement that is relatively safe, structurally sound, etc. $2000 on the other hand is pretty close to buying a mid-2000s civic with no accidents on record. there's no clear cut answer here; either repair or replace could be the optimal choice depending on projected maintenance costs and your local used car market.
of course, this is all based on the assumption that your current car is already a beater. I probably wouldn't scrap/sell my 2017 vw if it needed a $2000 repair.
> It's worth $1000 but is otherwise in fine condition.
You need to calculate if the cost of 4 tyres plus any future maintenance costs (and the time that is going to be lost in the future for maintenance) exceeds the cost of a new car minus the cars current value.
Opportunity costs and value brought by a new car is hard to calculate, yes, but the motto is: if you like the car to spend 1000 on it, just do it. E.g. My car is 15 years old, while I can afford a brand new one, I don't, because I love it :)
The value of the car is only what someone would pay for it. If you're planning to keep it, then that value is only an insurance number.
A car is potentially worth a lot more if you keep it, especially if the car is low maintenance. With electric cars you trade some value up front (they are typically more expensive) to reduce the maintenance over the long term. But you will still have maintenance like replacing batteries when they go. You saved the cost of filling it up with gas and changing oil for going electric. So the smart move would be to treat your car like you're still sort of filling it with gas and changing oil and put that money towards the cost of new batteries when the time comes.
Every car has maintenance costs. With electric you just sort of push it down the road a ways when it comes to the battery.
You could get a new car... sure.. but now you have a car payment, or you may have thrown a bunch of cash at the problem. But if there's nothing wrong with your car except maintenance then put that money into the maintenance. Otherwise you're just pretending to care about the environment with your electric car that you probably tell yourself is cheaper (due to gas and oil changes) and better for the environment.