No one wants to deal with a car after the transmission breaks down. It becomes uncomfortable when you have to make the decision whether you want to buy a new car or fix your transmission.
Then you have to ask yourself, is it worth it to repair a transmission, or am I better off buying a new car?
To decide if a repair is better than buying a car, you must weigh the price of the repair against what the car is worth.
If the car is not worth the repair, then you should probably replace it; or you are just not in the position to purchase a vehicle, so you should repair it.
In this guide, I will discuss reasons for repairing your transmission as opposed to reasons to buy a new car, I will talk about the factors that make a transmission repair so expensive, and I will discuss all of your options.
Reasons to Replace the Transmission
#1. Less Expensive.
If the car’s value is more than the cost of replacing the transmission, then you want to replace the transmission. It is typically not worth it to replace the transmission if you own an older vehicle that is not worth a lot of money, as transmission replacements can be expensive.
If you own a car worth $15,000, there is no reason to skip the transmission replacement. While you could sell the car, you won’t get retail value for the car if it has a transmission failure.
#2. Depreciation Already Occurred.
Since you don’t drive a brand-new car, less depreciation is happening with the value of the vehicle, and if you keep the vehicle for an additional year or two, you aren’t going to lose too much more depreciation on the vehicle’s value.
New cars can depreciate more than 22 percent in the first year, which is a lot of money lost on depreciation.
#3. Not Ready for New Car.
You might just not want a new car and payments, and that is okay. You can replace the transmission and buy some more time.
After the transmission is replaced, you should start saving for down payment on that next vehicle. Perhaps you will be ready in a year or two.
#4. Sentimental Reasons.
When you have an emotional attachment to a vehicle, the resale value won’t mean much. Maybe it was your first car, given to you by a loved one, or maybe even a dream come true.
In any case, if you buy a new one, you’ll have to get rid of this friend you’ve grown to love. Replace the transmission so you can continue to use it!
Reasons to Buy a New Car
#1. Cost Exceeds Value.
The most straightforward way to know whether to replace a car is to evaluate the value, honestly. If the retail value is less than what it costs to have the transmission replaced, it’s pointless to put any more money into it.
Time to bury the money pit, take your loss, and enjoy your next car, truck, or SUV. Get what you can from the vehicle and forget about it.
#2. Concern of More Breakdowns.
Older vehicles could be unreliable, and the transmission problem may be the tip of the iceberg.
If you are not up for spending the extra money on repairs, now is the time to evaluate your losses. You would much rather see that money go toward the next vehicle rather than into the old vehicle.
#3. You Are Just Tired of the Old Car.
You shouldn’t feel stuck with your old car just because you don’t want it. It may be embarrassing, or maybe it’s falling apart around every corner.
Take a look at your budget and see if you can get the new vehicle you deserve. There are great programs for auto loans and leasing to also get into a new car, truck, or SUV regardless of budget.
#4. Ready for an Upgrade.
Today’s cars include more technology than they used to. You’ll have safety gear, tech features, and entertainment options that you want.
Are you looking for heated seats, a backup camera, or lane change assist technology? They’re all there waiting for you. And, even if you are driving an older, used car—many of the newer technologies can be used as well.
Why is Transmission Replacement So Expensive?
#1. Mechanical Complexity.
The transmission is not as simply built as some other components of the vehicle. There are many mechanical parts working together that keep the transmission working as intended.
Because of this, it takes a certain level of knowledge to repair or replace a transmission. You will not be able to do a simple hour of labor on a transmission replacement like you can with a brake pad replacement.
#2. Make/Model.
The make and model of your vehicle can have a profound impact on how expensive the replacement will be. A smaller vehicle will typically, have a less expense and easier transmission to replace.
On the other hand, many luxury vehicles have expensive transmissions to replace. If you need to replace the transmission in a luxury vehicle, you can be sure this will increase your cost, and will typically need a special mechanic to do the job.
#3. Vehicle Age.
It can be more difficult to get parts for an older vehicle.
You may spend more money having your mechanic find and replace the transmission if they aren’t use to the age of the vehicle. Parts may also have to be ordered; and wait time could add unnecessary downtime after the transmission is ordered.
#4. Manual vs. Automatic.
If you have a man transmission, the cost may not be what you’d think. Generally, it is the cheapest transmission to replace.
Automatic will cost more because they have moving parts to deal with. If you have a full high-tech automatic, it’s even more expensive due to complexity.
#5. Labor Rate.
The labor rate of you mechanic will depend on where you live and their level of experience. Urban mechanics will likely charge a larger premium price than rural shops.
You might also attempt to do the replacement yourself; however, this is not recommended unless you truly knew you were doing as it requires special equipment and knowledge base.
What Can Be Done When Car Transmission is Bad
#1. Junk it.
If the vehicle is old and it isn’t worth anything without a working transmission, get ready to junk it. You can call local salvage yards to get the best price.
Most salvage yards will tow the vehicle and give you a little bit of cash at the same time. You could also part out the vehicle yourself, but this takes considerable time.
#2. Sell it/Trade it.
Whatever you choose, you might also just sell the vehicle as it is. A mechanic could have interest in fixing it up and selling it.
You might also just trade it into the dealership where you buy a new car. You won’t get a ton out of it, but something might be given to you just enough to put a down payment on something newer.
#3. Buy Used Transmission.
Your local mechanic might be able to get a used transmission. This would be the most inexpensive option; some models could be less than $1,000 for the parts.
However, you probably will not have a warranty on the used transmission. Because of the cost for warranty, you may pay the mechanic to put it in.
#4. Get a Rebuilt Transmission.
Most transmission shops will recommend the rebuilt option. The mechanics will remove the transmission and make it new again, replacing all of the key components.
This will typically cost between $1,500 – $2,500 for the transmission; however, labor will be additional. Depending on the shop you have it done at, you might receive a warranty on the work.
#5. Get Remanufactured Transmission.
The transmission shop may be able to find a remanufactured model. This will be like getting a rebuilt transmission; however, it is typically performed by the manufacturer.
The cost goes up, but you will get a better warranty. This is why this option is good for newer vehicles that have a failed transmission.
#6. Get a New Transmission.
You can always choose a new transmission. Depending on the older vehicle, this may not be an option is certain transmissions are no longer manufactured.
This is also the most expensive option which is why most do not choose this route. However, if you have luxury vehicles or a vehicle of high worth, you may want to know that is still manufactured.
Is it worth fixing a transmission on a car?
It depends on your car’s model, the severity of the transmission damage, along with the cost of replacement parts and labor.
If you have a newer car that has a damaged transmission, you may want to lean toward repair. But if you are driving an older car and it’s going to cost some serious money, you may want to think twice.
Ultimately, you will want to make the decision based on an evaluation of costs versus benefits.
Is a new transmission better than a rebuilt?
There’s no clear answer. A rebuilt transmission could be as good as a new one or not. It all depends on the quality of the rebuild.
A quality transmission shop does great work rebuilding transmissions, but sadly, there are many quality transmission repair shops too.
If you’re going to get a rebuilt transmission installed, make sure to obtain a warranty from them.
How much is a car worth that needs a new transmission?
The value of a car is only determined by what someone is willing to pay for it. If you need a new transmission, the cost for repairs can range from $1,500-8,000.
The average cost for a used car is roughly $15,000, so if you decide to sell your car as-is, you can expect to sell it for well below that.
You may get a couple of thousand, but it all depends on the buyer. Some people do not care for a car that requires major repairs, some people may be fine with buying a car that requires repairs as long as the price is attractive.
How long should a transmission last?
There are many factors involved in how long your transmission will last. Stoking habits, how the vehicle is driven, type of fluid used, service frequency, and more are all key components in the life of a transmission.
Most transmissions should last around 200,000 miles, although that can vary based on some of the factors mentioned.