When your car breaks down or needs a major repair, the question often arises: Should I fix it or buy a new one? Your next move will depend on several key factors, such as cost, reliability, and safety.

Weigh repair cost vs. car value

If a repair costs more than 50% of your car’s value, it may not be a wise move. For example, spending $4,000 on transmission repairs for a vehicle worth $6,000 could be difficult to justify, especially if other issues are likely to follow.

Use online tools like Kelley Blue Book to estimate your car’s current market value. By entering the make, model, year, mileage, and condition of your vehicle, you can receive a fair valuation. Be sure to compare results from multiple sources for a reliable range.

Consider its roadworthiness and frequency of repairs

Even if the repair cost seems manageable, it’s important to consider how often your car is in the shop. If you’re experiencing unreliable performance, frequent breakdowns, or rising maintenance costs, a newer vehicle might be the more practical long-term choice.

You’ll also want to take into account the age of your car and whether it still meets your lifestyle needs. If it lacks modern features like advanced safety systems or fuel efficiency improvements, you may benefit from upgrading.

Assess whether minor fixes can make a difference

In many cases, making small, affordable repairs to a vehicle can keep it running reliably for years to come. Examples include installing a new battery, staying on top of oil changes and fluid replacements, and addressing minor electrical issues.

These types of repairs are typically low-cost and high-reward, especially if your car has been otherwise dependable. If you don’t already have one, find a trusted mechanic who can provide an honest assessment of your vehicle’s condition and help you determine whether you’re better off fixing or selling your vehicle.

Know when it’s time to let go

Occurrences like these can tip the scale toward replacement:

• Major engine or transmission repairs that exceed half the vehicle’s value

• Safety failures involving brakes, steering, or airbags

• Repeated mechanical issues that suggest broader system failure

• High-cost maintenance that’s likely to repeat or increase over time

• Rust and/or other deterioration indicating your vehicle is near its end

In the event you choose replacement over repair

If you end up determining that a newer car is the way to go, you may find it at one of the 15,000+ dealers in Credit Acceptance’s network. Start your vehicle search today by getting pre-qualified for auto financing through our website.