Use the 50% Rule to Decide
Use the 50% rule for your $3,000 repair. If the cost stays under half your car's market value, repair it. If it tops 50%, replace the car. This rule works best for cars with 120,000+ miles or other major fixes due soon.
Start by finding your car's value. Free tools like Kelley Blue Book or Edmunds give quick estimates. Enter the year, mileage, and condition. A $5,000 car makes $3,000 equal 60% of value: replace it. An $8,000 car makes it 37%: repair it.
Factor in age and miles. Cars hit 90,000 to 120,000 miles and often need big services. Past 150,000 miles, drop your threshold to 20-30% of value. More breakdowns follow high miles. Repairs seldom boost resale value enough to cover costs.
Look at total ownership costs. Drivers average $900 yearly on maintenance. Repairs run about 9.68 cents per mile, or $1,452 at 15,000 miles a year. One $3,000 fix beats new car payments, higher insurance, and taxes. But repeated big repairs tip the scale to replace.
Common big repairs cost a lot:
| Repair Type | Cost Range |
|---|---|
| Transmission | $3,000 to $9,000 |
| Engine | $5,000 to $10,000 |
| Head Gasket | $3,000 to $5,500 |
| Timing Belt | $600 to $1,000 |
Quick Steps to Decide
- Get your car's market value from a site like Kelley Blue Book.
- Divide repair cost by value. Under 50% means repair. Over 50% means replace.
- Check repair bills from the last 24 months. Over $100 a month on average? Replace.
- Ask the shop for a full estimate with parts, labor, and warranty details.
- List upcoming needs: tires, brakes, battery, fluids, timing belt. Add those costs.
- Pay $100 to $200 for a pre-repair inspection to spot hidden problems.
- Weigh safety and downtime. Fix brakes, steering, or cooling issues right away.
- If replacing, compare new monthly costs: loan, insurance, taxes, maintenance vs. your current car.
Bottom line: Repair if $3,000 is under half the value and the car runs well otherwise. Replace if over 50%, miles run high, or problems pile up.
Sidekick tracks your repair history and total costs to show repair vs. replace in dollars per month.