Sunk Cost Fallacy: Don’t Let Past Repairs Trap You
Educational decision guide. U.S.-focused; costs vary by state/region and personal circumstances.
People often keep fixing a vehicle because they’ve already spent money on it. That’s understandable—but the decision should be based on future cost and reliability, not money already spent.
Key idea: Past repairs are gone either way. Your choice is about the next 6–24 months.
What sunk cost means in plain English
Money you already spent can’t be recovered. It shouldn’t decide what you do next.
A better question to ask
“If I owned this vehicle for free today, would I pay this repair to keep it for another year?”
How to use the break-even method
Convert big repairs into a monthly cost and compare to realistic replacement costs.
FAQ
What if I just did major repairs?
Then the vehicle may be more reliable now. Evaluate the next expected costs, not the past bill.
When should I walk away?
When safety is compromised or surprise failures keep stacking unpredictably.