Should You Repair or Replace Your Car? A Simple Test

Should You Repair or Replace Your Car?

Updated November 6, 2026

When Is a Car Not Worth Repairing?

A common rule of thumb says to think hard when one repair costs more than about half of the car’s value. But compare the likely yearly cost of keeping it with the yearly cost of a replacement, not past spending. If the rest of the car is sound, even a big repair is often cheaper than buying.

Updated November 6, 2026 · Source: workshop.broker planning guide (our own assumptions, not survey data); always compare written quotes.

Ignore What You Already Spent

Past repairs are gone. The only question is what happens from today.

Three Numbers

Repair today plus repairs you expect in the next two years.
Car's value as it is and once repaired. Check a valuation site or a dealer offer.
Replacement cost per year: price drop, payments and interest, and higher insurance.

When to Move On

Frame rust or flood damage.
Safety systems you cannot afford to fix.
Several large repairs likely at once.

Run your numbers in the repair or replace calculator. For an honest second view, get a local shop to do a pre-purchase style inspection.

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