All posts tagged money pit

In economics, there is a principle called sunk costs. It simply means that the money you spent on a product or service is gone. No matter how many times you throw good money after bad money, you cannot get your initial investment back.

When you purchase a car, it can be a gamble. You hope you are getting a good product, but you will not know for sure until you take it home and drive it around town for a while.

It can turn out to be the most reliable car on the lot, or a certified lemon.

If you purchased a car that turned out to be a lemon, one of the most intelligent things you can do is cut your losses. Here are four signs that indicate it is time to let your lemon go.

Your Car is a Money Pit

It is understandable for you to spend money on routine maintenance costs such as oil changes and tire rotations. However, if you frequently spend more money on repair costs than your monthly car payment, it is time to find a more reliable mode of transportation.

You Have to Frequently Tow Your Car

For most people, it is rare that they have to get their cars towed because of mechanical failure. If your car is a lemon, you may know tow truck drivers on a first name basis. According to the towing service experts at Sheffield towing, frequent automobile breakdowns are the primary reasons people have their cars towed. You are wasting countless hours and money by keeping a car that needs to be towed frequently.

Your Vehicle is Causing Stress

There is nothing more stressful than having to deplete your savings account in order to keep your car working properly. Financial stress can take a toll on your health. If you are constantly worried or losing sleep because of the money you are spending on your car, purchase a new car.

Your Car is Unreliable and Unpredictable

Your goal for purchasing a vehicle was to provide you with reliable transportation. When you put your key into the ignition, you want to be certain that it will start. You should not have to guess whether your car will operate from one day to the next.

At some point with your vehicle, you will have to face the fact that your car is more trouble than it is worth and move on.