Oct 10, 2026

Auto Expert Shares the Rule for Deciding Whether To Fix or Replace a Car

With new vehicle prices approaching $50,000, per Kelley Blue Book, many Americans are holding onto older cars longer than ever. But when repair bills start piling up, it can be difficult to know when fixing a vehicle makes financial sense and when it's time to replace it.

If you're deciding between holding onto an older vehicle that needs some work or upgrading to a new vehicle, here's what you need to know.

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When Does It Make Sense To Repair or Replace a Car?

Deciding whether to fix your car or get a new one can be a big financial decision, but one rule of thumb auto technicians often use can help simplify the decision.

"Many technicians use a guideline that if repairs cost more than 50% of the car’s value, it’s worth pausing to consider replacement," said Nick D’Alessio, master technician and head of Dorman Products' Proving Grounds Garage.

In other words, a $4,000 repair may be worth paying on a reliable vehicle worth $15,000, but it becomes harder to justify on a car worth only $5,000.

D’Alessio also said to keep in mind the quality of the car, including its age, mileage and maintenance history.

"One repair on an otherwise healthy car is different from a pattern of recurring issues," he said. "That’s when repairs shift from replacing a single part to restoring entire systems, which can be costly."

How To Reduce Car Repair Costs Without Sacrificing Quality

One of the highest costs of a repair is the cost of the replacement parts. However, there are ways for car owners to cut these costs if they do decide to fix their current vehicle.

"Car owners have more options today, as original equipment parts aren’t the only route to a quality repair," D’Alessio said. "Reputable aftermarket parts, for example, are engineered to meet or exceed OE specifications."

Retail parts stores offer an access point for car owners and technicians to find quality aftermarket parts, he said. And quality does matter — when it comes to car parts, you don't want to cut corners.

"When people are watching their budgets, part quality matters more than ever," D’Alessio said. "Drivers need durable solutions that help extend the life of their vehicle while maintaining safety and reliability. A cheap part that fails in six months can end up costing you more money over time. The key is to talk to your technician about parts options at different price points."

What Drivers Should Budget for When Keeping an Older Car

The average vehicle on the road is now about 13 years old, and people are driving more miles over those years.

"Vehicles are aging past the lifespan their original parts were built for, and drivers should expect routine wear on parts like brakes, belts and cooling system components," D’Alessio said. "As a technician, I’d recommend drivers set aside a maintenance fund to accommodate any surprise repairs."

He also recommends investing money upfront to avoid larger repairs down the line.

"Staying ahead of recommended maintenance, getting regular diagnostic checks and building a relationship with a trusted technician can help catch small issues before they turn into bigger, costlier repairs," D’Alessio said.

Building a dedicated maintenance fund can help drivers avoid taking on high-interest debt when unexpected repairs arise.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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Written by

Gabrielle Olya

Edited by

Zuri Anderson