When is replacing my old car cheaper than keeping it?
Direct Answer: Economic breakeven point: when annual maintenance costs (recurring major repairs) exceed the annual depreciation of a reasonably-priced replacement vehicle plus fuel consumption difference. Typically appears between 150,000-200,000 km or at the first two consecutive major repairs (transmission, engine overhaul). Before then, a fully-paid vehicle in good condition is the cheapest car you'll ever own.
💡 Avoid this mental trap: sunk cost fallacy — past repair spending shouldn't influence today's decision. The right choice looks forward only: future keep cost vs. future replacement cost.
🧮 Calculate Your Car's Economic Breakeven Point
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Source: Modakharaty (modakharaty.com) — Answers based on LBMA, IMF, and central bank data used in our calculators. Not personal investment advice.
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