How do you know when it is time to replace your car?

Most motorists know the feeling. The car goes into the workshop for what seems like a minor repair, only for the phone to ring with a quote that is far higher than expected. A few months later, another repair is needed.

Somewhere between the second and third invoice, the question starts to nag: is it time to let this car go?

It is a fair question, particularly in Namibia, where motorists often have to factor in long distances, fuel costs, insurance, servicing and the availability of parts when deciding whether to keep an older vehicle on the road.

Age alone does not provide the answer. A ten-year-old vehicle that has been properly maintained and covers relatively modest distances can cost less to run than a five-year-old vehicle that is regularly in the workshop.

The more useful question is: what is the vehicle really costing you each month?

“Owners tend to compare a repair bill against a monthly instalment, and that comparison is incomplete,” says Lebogang Gaoaketse, head of marketing and communication at WesBank SA.

“What a vehicle costs over time includes servicing, tyres, fuel, insurance, licensing and the repairs you did not plan for. Once you add it all up and divide by 12, you have a number you can actually make a decision with.”

What you are really spending?

Start with the past 12 months and add up everything the vehicle has cost you.

This should include routine servicing, tyres, brakes, batteries, unexpected repairs, insurance, licence renewal and fuel. Divide the total by 12 to establish your average monthly running cost.

If you have not done this before, the figure may be surprising.

Keep your workshop invoices and receipts where possible. If your records are incomplete, a reasonable estimate is still more useful than judging the vehicle's affordability based only on its monthly instalment.

That figure then gives you something against which to measure the cost of replacing the vehicle.

A newer vehicle will come with a monthly instalment, but may also offer lower repair costs, a warranty or service plan and better fuel consumption. The comparison is only useful if you consider the full cost of both options.

Reliability vs breakdowns

Once a vehicle is out of warranty or its service plan has expired, the owner takes on the full cost of unexpected repairs.

Recurring faults are an important warning sign. If the same component or system has failed more than once, it is worth considering whether further repairs are likely to follow.

Also consider how much downtime costs you.

For someone who relies on a vehicle to get to work, transport children, travel between towns or earn an income, a car sitting in a workshop can have a cost beyond the repair bill.

Parts availability can also become an issue with older or less common models, particularly when parts have to be sourced from outside Namibia and repairs take longer than expected.

If repairs are being paid for using short-term credit or a credit card, the actual cost of keeping the vehicle is also higher than the workshop invoice suggests.

Read the signs

There is no single formula for deciding when to replace a vehicle, but several practical indicators are worth considering:

• Repair costs over the past 12 months represent a significant portion of the vehicle's current trade-in or resale value.
• The same fault or system keeps failing despite repeated repairs.
• Major safety-related components, such as tyres, brakes or suspension, require replacement.
• Fuel consumption has increased noticeably.
• The vehicle is spending more time off the road.
• Your average monthly running costs are approaching what you would pay towards a replacement vehicle.
• You are regularly using credit to cover unexpected repairs.

None of these factors automatically means the vehicle should be replaced. Together, however, they can give you a clearer picture of the financial decision.

If you replace it, start with affordability

“Replacing a vehicle should be a planned financial decision, and affordability is the starting point,” says Gaoaketse.

“Work out what you can comfortably commit to each month, factor in insurance and running costs, and understand what your current vehicle is worth as a deposit or trade-in. Stretching the term to force the instalment down makes the vehicle more expensive over its life.”

Before visiting a dealership, establish the full monthly commitment you can afford.

Consider the deposit, instalment, insurance, fuel, servicing, tyres, licensing and other running costs. A repayment calculator can also help you compare different deposit and repayment-term combinations.

If your current vehicle still has value, a trade-in could reduce the amount that needs to be financed.

The decision is ultimately about more than whether the car is old or whether the latest repair bill feels too high.

“The right answer differs from one household to the next, and both answers are valid,” says Gaoaketse. “What matters is that the decision is based on your own numbers. Understand what you are spending now, understand what a replacement would commit you to, and then choose the option that moves your household forward.”