Should You Repair or Replace Your Car?

A common rule of thumb is: if a single repair costs more than 50% of the vehicle's current market value, replacing the vehicle is usually the better financial move. That said, context matters. If the car is otherwise reliable and paid off, even a large repair can be cheaper than taking on new monthly payments for years.

Check Canadian Black Book (cbb.ca) or AutoTrader.ca for your year, make, model, trim, and mileage. These give you realistic private-sale and trade-in values. Dealer trade-in offers are typically lower than private-sale value, so use the trade-in estimate for a conservative figure.

Yes. A newer or more expensive replacement vehicle almost always costs more to insure. The difference can be $50 to $200 per month depending on the vehicle, your driving record, and your province. This calculator includes estimated insurance and maintenance differences in the comparison.

The break-even point is how many months it takes before one option becomes cheaper than the other on a cumulative cost basis. If keeping your car has a high upfront repair cost but low monthly costs, it may take several months before replacing becomes the cheaper path, or it may never break even at all.

Significantly. A paid-off car with no monthly payment is almost always cheaper to keep, even with moderate repairs. You are comparing a one-time repair cost against years of new monthly payments. The only exception is when repair costs are extreme relative to the car's value, or if the vehicle is genuinely unsafe and unreliable.