Quote:
Originally Posted by Adrock
That brings me back to my original point... what happens when something goes wrong with the new car? Sell that as well?
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The logic would be applied to the next scenario as well. A new decision must be made.
The person would again have to measure the explicit (and implicit) cost of fixing it vs selling it at a loss and purchasing another vehicle.
Quote:
Originally Posted by Adrock
Unless the person selling the car is going to be dishonest and not tell the buyer about the 3 broken head studs, then the buyer is going to include the cost of any work required in any offer they make on the car, so in my opinion the seller is going to take a hit whether they sell the car or pay for it to get fixed. Also, if they are buying a replacement car with less money, they are going to likely end up with a lesser car.
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See my original posts - the OP will have to discount the value of the car due to the broken head studs - this is the amount you are using to discover whether it is a viable decision or not. (this is the "HIT" you are referring to.. i.e the "less money") If the difference (the loss) is less than what it would be to fix the existing problem to include the OP time (both implicit and explicit costs) then sell. If not then fix it. It works on any repair decision (bad spark plug up to total restoration).
The new buyer decides whether the time invested and costs incurred is worth the investment. Someone mechanically inclined wont have to invest a lot of time researching, reading, asking the forum questions (etc.) as a first timer - so the investment of time (and possibly parts) would be cheaper and thus can make the "math" work.