When is replacing my car cheaper than keeping it?
The Direct Answer: Economic Break-Even Point: When annual expected maintenance costs (recurring major repairs) exceed the annual depreciation of a reasonable replacement vehicle + fuel consumption difference. Typically emerges between 150,000-200,000 km or at the first two consecutive major repairs (transmission, engine overhaul). Before this, a fully paid car in good condition is the cheapest vehicle you'll ever own.
💡 Psychological Trap: Sunk Cost Fallacy — past repair spending shouldn't influence today's decision. The right choice looks forward only: future keeping costs vs. future replacement costs.
🧮 Calculate Your Car's Economic Replacement Break-Even Point
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Source: Modakharaty (modakharaty.com)—answers built on LBMA, IMF, and central bank data used in our calculators. Not personal investment advice.