29 July 2016
 Categories: , Articles

If your commercial vehicle has broken down, you may be wondering how to determine whether or not to repair or replace the vehicle. Most people know that if the cost of the repair exceeds the value of the vehicle, you should not make the repair. But often, a repair doesn't exceed the value of the vehicle, but is still costly. Here are a few factors to keep in mind when deciding whether to repair or replace a commercial vehicle.

The Age and Mileage of the Vehicle

One of the most important factors to consider when deciding whether to have heavy equipment repair done to a commercial vehicle is the age and mileage of the truck. Many experts recommend that you conduct an economic lifecycle analysis on a new commercial vehicle. Taking into account the type of vehicle, it's expected lifespan, the type of repairs it will need over the course of its operation and the estimated decrease in value of the vehicle will help you decide when an optimum time to sell the vehicle will be. Most businesses want to sell their commercial vehicles while they still have value to them, instead of simply continuing to use them until they die. An economic lifecycle analysis will help you determine at what age or mileage you should think about selling a commercial vehicle. If your commercial vehicle is nearing that age or mileage range and needs a costly repair, you may be better off selling it, rather than repairing it.

How Well-Maintained the Vehicle Is

Another factor to keep in mind when deciding whether to repair or replace a commercial vehicle is how well-maintained the vehicle is. Generally speaking, a strict maintenance schedule will reduce the likelihood of catastrophic failures or heavy equipment repairs. It can't prevent them all, as parts will go bad or wear out. But when you properly maintain the parts, you can extend the lifespan of the part, or typically know that a part is beginning to wear and will need to be replaced in the future. If you have kept up with recommended maintenance, you likely have a good idea as to what repairs the vehicle will need in the future and how costly those repairs may be. This gives you a good idea as to whether this repair will keep the vehicle running for some time, or whether more repairs are needed down the line. If lots of repairs are needed, it may be time to sell the vehicle. Unfortunately, if you haven't kept up with maintenance, you have no idea what repairs may be needed in the future. In these cases, you may be best selling the vehicle if a costly repair is needed now, as another may be lurking right around the corner.

How Many Repairs the Vehicle Has Had and What Those Repairs Were

The last factor to keep in mind when deciding whether to repair or replace a commercial vehicle is how many repairs the vehicle has had recently and what those repairs were. Generally speaking, you don't want to find yourself in a position where smaller repairs begin to add up and exceed the value of a commercial vehicle. If your commercial car or truck seems to need repairs frequently, it may be time to replace it. However, at the same time, you need to consider what you have recently repaired. If you've recently replaced something large, such as the engine or transmission, and now you have minor repairs, it may be worth making those repairs because you have already invested a lot of money into a large part that should last awhile without needing any repairs. Always weigh the cost of recent repairs, as well as factoring in what you have repaired and how long those repairs should last, when deciding whether to repair or replace a commercial vehicle.

Deciding whether to repair or replace a commercial vehicle can be challenging. You don't want to wait too long and find yourself constantly having a vehicle that breaks down. But, on the other hand, you don't want to get rid of a vehicle that will last for a few more years if you make one repair to it. Considering the age and mileage of the vehicle, how well-maintained it is and how many repairs you have recently made to the vehicle will help you make an educated decision as to which is right for your business.