Couldnt that same argument be use for any car? Why would anyone buy a new car at all?
It could. Numerous people scrap cars and then spend a fortune on another because they are too obsessed with the ratio between repair bill and book value of the car they own. I appreciate this is a bit of an extreme example given the car is worth just £400, but it's a valid point generally.
There's got to be a point in every cars life where they are beyond economical repair or else very little cars would come off the road each year.
But this is a largely uniquely British thing. We have the lowest used car values of perhaps anywhere in the world - and as a result often quite trivial faults make otherwise perfectly excellent cars which would be worth many thousands elsewhere technically 'beyond economical repair'.
So we waste them. We throw them in the bin and we rush out and buy a new car which, unless we buy brand new or with a warranty, has no guarantee of not producing similar if not bigger bills anyway!
If it needs an engine it'll be more than £400 fitted, and while £500 to £1000 won't buy you a good car spending perhaps £2000-£3000 wisely will get a car that will last another 7 years. You'd really have to love the Saab to keep spending money on it.
You'd have to be more than lucky to spend £2000 on a car which then lasts 7 years without dropping a bill of more than £400!
'Oh, my car that has provided reliable sterling service for X years has just dropped a £800 bill on me. I had better sell it for scrap at £200 and rush out and buy a car of unknown provenence for £3000 instead'
It's illogical, yet everyone does it.
It's why you hardly see any 200k mile or 15+ year old cars. It isn't because cars die at 200k or 10 years old, its simply because in our market they are worth half a packet of cheesy wotsits so everyone rushes out and buys somebody elses 6 year old castoff for a few grand every time a bill appears thats slightly bigger than you'd hope.
If the head gasket went on your 4 year old Audi and the bill was £1500 you'd whinge and pay up. Yet when the same thing happens on a 10 year old Audi you'd cry that it's old and crap, throw it in the bin and buy something else.
Bizarre.