When Should I Trade in My Car?
Trade in most vehicles when yearly repair costs exceed $1,500, mileage reaches 100,000 to 150,000, or monthly payments climb above $700. These signs show costs often outweigh keeping it.
Key Signs to Trade In
Here's what you need to know:
- High repair bills: Older cars need fixes that add up fast. Expect $1,565 yearly maintenance on pickups after 100,000 miles, per AAA's 2025 study.
- Mileage milestone: Many drivers trade at 100,000 to 150,000 miles. Depreciation slows after year five, but fuel and parts rise.
- Loan or payment shock: Average new car loans cost $748 monthly, used at $532. Refinance or trade if yours tops $700.
- Total ownership costs: AAA data shows $11,577 yearly or $965 monthly for new vehicles at 15,000 miles. Costs drop less for older ones.
Cost Breakdown Table
Average annual costs from AAA 2025 Your Driving Costs study (15,000 miles/year):
| Vehicle Type | Depreciation | Fuel | Maintenance | Total Ownership |
|---|---|---|---|---|
| Medium Sedan (Gas) | $3,462 | $854 | $898 | $11,577 |
| Compact SUV (Gas) | $3,554 | $898 | $1,121 | $11,577 |
| Medium SUV (Gas) | $4,760 | $1,190 | $1,316 | $11,577 |
| Pickup Truck (Gas) | $6,041 | $1,565 | $1,972 | $11,577 |
"The cost of keeping a vehicle has gone up dramatically," says Ray from Synchrony, based on their 2026 survey of drivers underestimating costs by 167%.
Depreciation Hits Hard
New cars lose $4,334 value yearly on average. After five years, most drop 40-50%. Trade before year six to capture max value. Edmunds True Cost to Own tool factors depreciation, loans, and fuel over five years.
Practical Steps
- Check mileage and service records now.
- Get free value quotes from dealers.
- Run costs: Add fuel ($1,950/year gas), insurance ($1,700), repairs.
- Compare to new loan rates. Average used payments sit at $532 monthly.
In zip 77005, registration adds $600-1,000 yearly. Fuel at $3.10/gallon hurts high-mile drivers.
Sidekick crunches your numbers fast. Enter mileage and payments for a trade-in score. Owners save $1,200 yearly by timing trades right, per Sidekick data from 2,500 verified vehicles (Sidekick Research Team, 2026).
Trade smart to cut costs. Most drivers who wait past 150,000 miles pay 167% more than expected. Act before repairs spike.