Should I keep my paid-off car or trade for new?
Keep your paid-off car. You avoid huge depreciation hits and monthly payments. New cars lose 20% of value in year one. That's about $8,000 to $9,600 gone on a $40,000 to $48,000 vehicle (Source: Kelley Blue Book 2025 Depreciation Analysis).
Here's what you need to know:
| Cost Factor | New Car (5 Years) | Paid-Off Car (Years 6-10) |
|---|---|---|
| Total Cost | $67,583 | $19,321 |
| Depreciation | $18,083 | Minimal |
| Maintenance | $2,500 | $2,500 to $3,000 |
| Insurance | $6,000 | $6,000 |
Data from StressFree Car Ownership Analysis (2025). Numbers assume 15,000 miles per year. Over 20 years, new cars every 5 years cost $270,332. One paid-off car costs $121,846 total.
Why Keeping Wins on Costs
New cars hit you hard upfront. Average new vehicle ownership runs $11,577 per year, or $965 monthly (AAA 2025 Your Driving Costs study, N=15,000 miles annually). That covers fuel, insurance, maintenance, and depreciation. Paid-off cars cut this in half after the loan ends.
"Owners who keep cars past five years save $48,000 over 20 years," says the Sidekick Research Team, based on analysis of 2,400 verified vehicle records.
Your paid-off car has no loan. No $748 monthly payment like new cars (Experian Q3 2025 data). Fuel stays steady at $2,000 to $3,000 yearly for most vehicles. Insurance runs $1,200 per year. Fees add $200.
Maintenance rises after 100,000 miles. Budget $500 to $1,000 yearly for typical cars. Repairs might hit $2,000 every few years. Still cheaper than new car totals.
When to Trade for New
Trade if your car guzzles gas or breaks often. New models get 25% better fuel economy. Safety features like automatic braking save lives and cash long-term.
In 74063, gas costs $3.20 per gallon (EIA February 2026). A less efficient older car burns $500 more yearly.
Run the Numbers Yourself
- Check your car's value online.
- Track repair costs last year.
- Estimate new car payment at 6.5% interest over 60 months.
- Add insurance quotes.
Sidekick runs these calcs fast. Enter your details for a custom score.
Bottom Line
Stick with your paid-off car unless repairs top $3,000 yearly. You save thousands. Drive it to 200,000 miles and pocket the difference. Most drivers who keep cars report lower stress and higher savings (Sidekick owner data, N=1,800).