Your current car’s repairs exceed 50% of its market value or if critical safety features (like AEB) are missing.
The annual repair costs are under $3,000 and it has a reliable history (e.g., Toyota, Honda). buy a new car or not
: If your car was built before 2014 , it likely lacks Electronic Stability Control (ESC) and Autonomous Emergency Braking (AEB), which are now standard and significantly lower accident risks. The Financial Reality of New Cars (2026) Your current car’s repairs exceed 50% of its
: If annual maintenance and non-routine repairs average over $3,000, they likely outweigh the depreciation hit of a newer vehicle. The Financial Reality of New Cars (2026) :
Consider a 3 to 5-year-old used car . You avoid the initial 20–40% depreciation hit while still getting modern tech and remaining warranty. 📊 Repair vs. Replace: The "Rules of Thumb"
Before committing to a new loan, use these metrics to evaluate your current vehicle's worthiness.