Should I Repair or Replace My Car? The 5-Year Math for Both

Page published November 4, 2026

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The short answer: keep it for $30,327 over 5 years, about $505 a month, or replace it for $44,925, about $749 a month. The gap is $14,598, about $243 a month.

Cash out the door is $25,327 to keep against $53,925 to replace. Same 5 years, same miles, same insurance, same gas price. Only the car, and the loan, change.

The two cars in this example

Keep: a paid-off midsize sedan, about 10 years old, worth about $8,000 now as a stated example assumption. It drives 12,000 miles a year at 30 miles a gallon, gas at $4.071 a gallon (EIA national average, week ending August 31, 2026), full-coverage insurance at $2,237 a year, upkeep at $1,200 a year for maintenance, repairs, and tires, and it is worth $3,000 after 5 more years, also as a stated assumption.

Replace: a $20,000 used sedan from the site's $20,000 used-car example: 10% down ($2,000), $20,300 financed at 11.19% APR over 60 months, 7% sales tax ($1,400), $900 in title and dealer fees, the same 12,000 miles, 30 miles a gallon, $4.071 gas (EIA national average, week ending August 31, 2026), $2,237 insurance, and $1,200 upkeep, with a $9,000 resale after 5 years as a stated assumption. Its 5-year total is $44,925, about $749 a month.

Both 5-year totals, bucket by bucket

Bucket, 5 years	Keep	Replace
Value lost	$5,000	$11,000
Insurance	$11,185	$11,185
Fuel	$8,142	$8,142
Upkeep	$6,000	$6,000
Tax, fees, and interest	$0	$8,598
Total	$30,327	$44,925

The keep side is $5,000 in value lost ($8,000 now minus $3,000 later) plus $11,185 in insurance ($2,237 a year for 5 years) plus $8,142 in fuel (12,000 miles a year divided by 30 miles a gallon, times $4.071 a gallon, times 5 years) plus $6,000 in upkeep ($1,200 a year for 5 years). The replace side is $11,000 in value lost ($20,000 minus $9,000) plus the same $11,185, $8,142, and $6,000, plus $8,598 in sales tax ($1,400), title and dealer fees ($900), and loan interest ($6,298). The gap is $44,925 minus $30,327, which is $14,598.

The gap has two parts. The replacement pays $8,598 in sales tax, title and dealer fees, and loan interest that the keep side never pays. It also loses $6,000 more in value ($11,000 against $5,000). Those two parts add up to the $14,598 gap exactly. Insurance, fuel, and upkeep are identical on both sides by design, so they cancel out of the comparison.

Formula

Keep buckets: value lost $5,000 ($8,000 now minus $3,000 later) plus insurance $11,185 ($2,237 a year for 5 years) plus fuel $8,142 (12,000 miles a year divided by 30 miles a gallon, times $4.071 a gallon, times 5 years) plus upkeep $6,000 ($1,200 a year for 5 years), which is $30,327, or about $505 a month. Replace buckets: value lost $11,000 ($20,000 minus $9,000) plus the same $11,185, $8,142, and $6,000, plus $8,598 in sales tax ($1,400), title and dealer fees ($900), and loan interest ($6,298), which is $44,925, or about $749 a month. The gap is $44,925 minus $30,327, which is $14,598, or about $243 a month.

The gap has two parts. The replacement pays $8,598 in sales tax, title and dealer fees, and loan interest that the keep side never pays. It also loses $6,000 more in value ($11,000 against $5,000). Those two parts add up to the $14,598 gap exactly: $8,598 plus $6,000 is $14,598. Insurance, fuel, and upkeep are identical on both sides by design, so they cancel out of the comparison.

Upkeep is the line that moves most. At RepairPal all-model average of $652 a year for repairs and maintenance, the keep side upkeep is $3,260 over 5 years, its total falls to $27,587, about $460 a month, and the gap widens to $17,338. At AAA 2026 new-car figure of $1,755 a year for maintenance, repairs, and tires, the keep side upkeep is $8,775, its total rises to $33,102, about $552 a month, and the gap narrows to $11,823. Every $100 a year on upkeep moves the 5-year keep total by $500. The break-even: upkeep on the kept car would have to average $4,120 a year for 5 years straight before the keep side tied the $44,925 replacement side. Below that average, keeping stays cheaper in this example. Above it, replacing wins on cost alone. A single bad year does not flip it; the average over 5 years is what matters. Cash out the door is $25,327 to keep against $53,925 to replace, as stated on the page, a cash gap of $28,598. The replace cash total uses the page rounded about $865 a month for payment, insurance, gas, and upkeep together, so it is stated as printed and not decomposed here.

What moves the answer: the upkeep range

Upkeep is the line that moves most. At RepairPal's all-model average of $652 a year for repairs and maintenance, the keep side's upkeep is $3,260 over 5 years, its total falls to $27,587, about $460 a month, and the gap widens to $17,338. At AAA's 2026 new-car figure of $1,755 a year for maintenance, repairs, and tires, the keep side's upkeep is $8,775, its total rises to $33,102, about $552 a month, and the gap narrows to $11,823. Every $100 a year on upkeep moves the 5-year keep total by $500.

The break-even: upkeep on the kept car would have to average $4,120 a year for 5 years straight before the keep side tied the $44,925 replacement side. Below that average, keeping stays cheaper in this example. Above it, replacing wins on cost alone. A single bad year does not flip it; the average over 5 years is what matters.

Cash out the door

Cash is starker than true cost. Keeping means no payment and no purchase: insurance, fuel, and upkeep total $25,327 out of pocket over 5 years, and the $3,000 remaining value is yours if you sell. Replacing means $2,000 down plus loan years at about $865 a month for payment, insurance, gas, and upkeep together, and the cash out the door totals $53,925 against the $44,925 true cost, with the $9,000 resale yours if you sell. The true-cost gap is $14,598; the cash gap is $28,598.

What this page does not count

Liability-only insurance on the old car. Both sides use full coverage at $2,237 a year. The $20,000 example notes liability-only at $99 a month would save $5,245 over five years on paper, and that saving is not counted here.

A trade-in on the old car toward the replacement. The replacement example uses $2,000 cash down and no trade-in, so a trade-in would shrink the replacement loan and is not modeled here.

Breakdown risk, time without a car, newer safety tech, and hassle. None of those are priced, and none are counted.

A single catastrophic failure beyond the upkeep range. No single figure is claimed for one; the $4,120 a year break-even is the yardstick for judging any repair run.

How this page differs

The fix my car or buy a new one page tests a single repair bill against replacing with a new RAV4, using a $23,399 threshold on running costs alone. This page runs full 5-year totals on both sides, including the value each car loses, against a used $20,000 sedan. Different replacement, different method, different question.

The keep it 10 years page runs a decade horizon against buying new. This page runs 5 years against a used replacement. For your own car, loan, and quote, the calculator is where every input above gets replaced.

Figures and sources

AAA Your Driving Costs 2026: maintenance, repairs, and tires at 11.7 cents a mile for a new car, about $1,755 a year at 15,000 miles a year. AAA also notes the figure runs higher for an older vehicle. RepairPal: all-model average of $652 a year for repairs and maintenance, midsize-car average of $526 a year, across 2010 to 2019 model years. Insurify mid-2026 data via the $20,000 used-car example: full coverage at $2,237 a year. Replacement total, loan, tax, fees, and cash figures: the Driveonomics $20,000 used-car example, linked above. Kept-car values ($8,000 now, $3,000 after 5 years) are stated example assumptions, not published prices, and a different model, condition, or mileage moves them. Gas at $4.071 a gallon (EIA national average, week ending August 31, 2026) matches the $20,000 used-car example so both sides share one pump price.

Educational estimates only, not financial, tax, legal or insurance advice. Every figure on this page is a typical example worked from the inputs stated on the page, not a quote for a specific car, loan, or driver. Your rate, insurance, fuel use, upkeep, and resale value will move your total. See Terms.

Calculation transparency

Scope. Two 5-year totals on the same miles, insurance, and gas price: keep a paid-off 10-year-old midsize sedan, or replace it with a $20,000 used sedan from the site $20,000 used-car example.

Rules and time period. Keep car worth about $8,000 now and $3,000 after 5 years, stated assumptions; replace car $20,000, 10% down ($2,000), $20,300 financed at 11.19% APR over 60 months, 7% sales tax ($1,400), $900 in title and dealer fees, $9,000 resale after 5 years, a stated assumption; both sides 12,000 miles a year, 30 miles a gallon, gas at $4.071 a gallon, insurance $2,237 a year, upkeep $1,200 a year.

Scope and limitations. Educational estimate only. Liability-only insurance on the old car, a trade-in on the old car toward the replacement, breakdown risk, time without a car, newer safety tech, hassle, and a single catastrophic failure beyond the upkeep range are not counted. Kept-car values are stated example assumptions, not published prices, and a different model, condition, or mileage moves them. Prices vary by car, shop, and city. Get a written quote for your own car before you decide.

Source links checked November 6, 2026. Figures: AAA Your Driving Costs 2026: maintenance, repairs, and tires at 11.7 cents a mile for a new car, about $1,755 a year at 15,000 miles a year; RepairPal all-model average of $652 a year for repairs and maintenance and midsize-car average of $526 a year, across 2010 to 2019 model years; Insurify mid-2026 data via the $20,000 used-car example, full coverage at $2,237 a year; replacement total, loan, tax, fees, and cash figures from the Driveonomics $20,000 used-car example; gas at $4.071 a gallon, the EIA national average, week ending August 31, 2026. The RepairPal and Insurify figures are named only, not linked.

Primary sources: AAA Your Driving Costs 2026; EIA, U.S. weekly retail gasoline prices; What a $20,000 used car really costs; How much do common car repairs cost. How the numbers are calculated is written down on the methodology page, and every source is listed on the sources page.

Definitions

Value lost. The value a car loses over 5 years. On this page, $5,000 to keep ($8,000 now minus $3,000 later) and $11,000 to replace ($20,000 minus $9,000).

Upkeep. Maintenance, repairs, and tires together. On this page, $1,200 a year in the example, with RepairPal $652 a year and AAA $1,755 a year as the sensitivity range.

Break-even. The upkeep bill that would tie the two sides. On this page, upkeep on the kept car would have to average $4,120 a year for 5 years straight before the keep side tied the $44,925 replacement side.

Loan interest. The interest paid on the loan. On this page, $6,298 inside the replace side $8,598 tax, fees, and interest line.

APR. Annual percentage rate, the yearly interest rate on the loan. This example uses 11.19% over 60 months.

Cash out the door. The money actually paid out over 5 years. On this page, $25,327 to keep against $53,925 to replace, as stated on the page.

Sales tax. A tax on the purchase price, charged by your state. On this page, 7%, or $1,400 on the $20,000 replacement.

Questions people actually ask

Should I repair my car or replace it?

In the worked example on this page, keeping a paid-off sedan costs $30,327 over 5 years against $44,925 for a $20,000 used replacement, a gap of $14,598. That is the comparison, not a verdict: your car, your upkeep, and your loan quote move both totals, so the calculator is where your own car, loan, and quote replace every input above.

How much does keeping an older car cost per year?

In this example, $30,327 over 5 years works out to $6,065 a year, or about $505 a month, with upkeep at $1,200 a year. At RepairPal's all-model average of $652 a year for repairs and maintenance, the 5-year keep total falls to $27,587. At AAA's new-car figure of $1,755 a year for maintenance, repairs, and tires, it rises to $33,102.

What upkeep bill would flip the answer?

Upkeep on the kept car would have to average $4,120 a year for 5 years straight before the keep side tied the $44,925 replacement side. That is the break-even: below it, keeping stays cheaper in this example, and above it, replacing wins on cost alone. A single bad year does not flip it; the average over 5 years is what matters.

How is this page different from the fix my car or buy a new one page?

That page tests a single repair bill against replacing with a new RAV4, using a $23,399 threshold on running costs alone. This page runs full 5-year totals on both sides, including the value each car loses, against a used $20,000 sedan replacement. Different replacement, different method, different question.

Does a trade-in or cheaper insurance change the math?

Both are left out of this example on purpose. The replacement example uses $2,000 cash down and no trade-in, so a trade-in on the old car would shrink the replacement loan and is not modeled here. Both sides use full-coverage insurance at $2,237 a year; the $20,000 example notes liability-only at $99 a month would save $5,245 over five years on paper, and that saving is not counted here either.