Keep vs Replace Checklist (Fast, Practical)

Educational decision guide. U.S.-focused; costs vary by state/region and personal circumstances.

When money is tight, the first question is often “Do I keep it?” This checklist helps you decide quickly without getting trapped by emotion, sunk costs, or unrealistic expectations.

Working household rule: If it’s safe and predictable, keeping it is often cheaper than replacing it—especially when replacement includes taxes, fees, and unknown-history risk.

Step 1: Safety and legality

Brakes, tires, steering, suspension, lights
State inspection / emissions issues
Airbags and critical warnings

If safety is compromised, fix or stop driving—no exceptions.

Step 2: Predictability

A vehicle that “randomly strands you” is financially dangerous. Track breakdown frequency and the cost of surprises.

Step 3: The 12‑month view

Add up the last 12 months of repairs/maintenance. If it’s stable, you’re probably fine. If it’s accelerating, reassess.

Step 4: Break-even months

Divide the repair cost by the number of months you realistically expect to keep the vehicle. If a $1,800 repair buys 18 months, that’s $100/month—often cheaper than replacing.

FAQ

Is it dumb to keep an old car?

Not necessarily. If it’s safe and predictable, keeping it can be the cheapest option.

Should I compare repairs to resale value?

Resale value matters, but also compare to replacement cost + taxes/fees + unknown risk.