Originally Posted By: Cujet
I'll make the "cost per mile" argument.
All vehicles have a cost per mile. The IRS allows a deduction of 54.5 cents per mile. That is a very close estimate of real world costs for the average driver.
Don't get hung up on the capital cost of a vehicle, as other expenses (gas, insurance, repairs, service) will very likely be far higher over it's lifetime.
For example, a leftover 2017 Nissan Altima can be had for $17K, plus tax/fees. Call it $19K out the door. Lifespan 175K. That's under 11 cents per mile, capital cost.
My insurance is $1700 year, 10K miles. 17 cents per mile.
Gas cost depends on MPG, this is where a well chosen modern efficient car can save you money.
I say, replace.
Counter argument, he pays $1600 to fix the problem and the car returns another 50,000 miles of trouble free service. Which works out to 3.2 cents per mile or roughly 3 times the return on his investment compared to the new vehicle in your example.