Should you get rid of your old car, keep it, or buy a new one?
Working out if it’s better to repair your car or replace it can be difficult. Canstar asks an expert for advice and provides tips on solving this conundrum.

Working out if it’s better to repair your car or replace it can be difficult. Canstar asks an expert for advice and provides tips on solving this conundrum.
KEY POINTS
- If the cost to repair your car exceeds its value, it’s probably time to consider replacing it.
- The average age of passenger vehicles in Australia is around 11 years.
- Maintaining a car costs money, but could potentially save you in the long run.
Should you replace or repair your car?
National mechanic chain Ultra Tune spokesperson Rod Cedaro says the decision to replace or fix an older car can be a hard one to make. But, as a rule of thumb, he says that if it costs more to repair than it’s worth, then it’s perhaps time to consider your options.
“Have your vehicle assessed and valued, if the cost of rectification exceeds the value of the vehicle, that’s a pretty good indication it’s time to cut your losses and dispose of the vehicle,” Mr Cedaro says.
Car insurers take a similar stance when it comes to repair claims after accidents. If it will cost more to fix a car than its market value or insured value, it may be ‘written off’ and you may instead receive a payout from the insurer.
One way to calculate if it may be worth replacing your car could be to:
- Research how much it might cost to repair. Ask for a quote for repairs from a mechanic, or mechanics, if you are able to get multiple quotes.This is also a good time to check the terms and conditions of your car’s warranty if you have one.
- Research your options for your car if you decide to replace it. Consider:
- How much you might get for your car if it was in working condition and you sold it on the open market
- What its trade-in value might be. You could contact a few secondhand dealers for estimates
- What a wrecking yard might pay for it if the repairs needed are extensive.
- How much you might get for your car if it was in working condition and you sold it on the open market
- Research your options if you buy another car:
- Estimate how much you might be able to spend on a new car and what car fits into your budget
- Work out the cost of maintaining a new car, such as the expenses if you choose to take out a car loan plus ongoing running costs, and how you might fit these into your budget.
At the end of this research, you should have a clearer picture of the finances involved in choosing between repairing or replacing your car.
Other factors to take into account could include logistics, such as how you will get around while your car is being repaired or replaced, and sentimental value – how much the car means to you emotionally.
What is considered as an ‘older model’ car in Australia?
Australians love their cars. We have 15.7 million passenger vehicles registered to drive on our roads, according to the Bureau of Infrastructure and Transport Research Economics (BITRE). But a lot of cars on the road are no longer under warranty, and potentially approaching the end of their lifespan.
BITRE says the average age of passenger vehicles in Australia is around 11 years, but Mr Cedaro says the average age of vehicles serviced by the national mechanics chain is between five to 12 years old.
“An older car would be considered seven-plus years of age,” Mr Cedaro says.
He says that’s because manufacturers are now typically refreshing their model range every five to seven years.
“The general trend has been a lot more models coming onto the market at a faster rate in newer-created segments than ever before,” he says.
Technology changes are also driving that higher rate of turnover. A case in point could be the recent surge of ‘green’ vehicles coming on to the market, such as electric and hybrid vehicles.
BITRE statistics also show people are increasingly opting to buy these kinds of vehicles, replacing traditional powered cars with these new models.
The comparison rates for car loans are based on credit of $30,000 and a term of 5 years, unsecured, unless otherwise stated.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Canstar may earn a fee for referrals from its website tables, and from Sponsorship or Promotion of certain products. Fees payable by product providers for referrals and Sponsorship or Promotion may vary between providers, website position, and revenue model. Sponsorship or Promotion fees may be higher than referral fees. Sponsored or Promotion products are clearly disclosed as such on website pages. They may appear in a number of areas of the website such as in comparison tables, on hub pages and in articles. Sponsored or Promotion products may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The table position of a Sponsored or Promoted product does not indicate any ranking or rating by Canstar. For more information please see How We Get Paid.
Are older cars more expensive to repair than newer cars?
Whether or not it’s cheaper to repair and service an older car depends on many factors, including the make and model of the car, and what needs to be done. It could pay to get quotes from a few different mechanics or service centres to compare prices.
You might also find a difference in service and repair costs charged by manufacturer service centres to those not affiliated with a car brand.
Mr Cedaro says in some cases, it could be cheaper to service an older car than a newer one when using a mechanic who isn’t affiliated with a manufacturer, due to the technology needed to access the computer systems of newer cars.
“Technology in the motor vehicle sector is changing rapidly, which means continuously having to update technology to read vehicle computers which indicate faults,” he says.
“From that perspective, much of the cost of maintenance in relation to newer vehicles stems from the ongoing need to update technology.”
What are some of the common problems with older cars?
Mr Cedaro says an indication of the most common problems with older cars can be found when looking at the items that the national car service chain most commonly supplied to customers. These “high turnover” items include:
- Brakes
- Lubricants
- Batteries
- Tyres
- Wiper blades
- Filters (oil and air)
- Shock absorbers
- Suspension pivot points
- Suspension bushes
“These items wear out in typical vehicle use and need to be replaced intermittently during the lifecycle of the vehicle,” he says.
Other common issues for older cars include weathered interiors and oil leaks. Some of these issues are a quick fix, while others come with considerable costs.
Do you need to regularly service older vehicles?
Mr Cedaro says maintaining a car costs money, but this could potentially save you in the long run.
“Vehicles typically have scheduled maintenance intervals around mileage travelled – generally every 10,000km,” he says. “They are there for a reason. When scheduled maintenance is ‘skipped’ to ‘save money’, problems can compound.
“For example, not replacing the oil or oil filter can lead to dire engine problems with catastrophic consequences. The same [can happen] with brake pads – not replacing brake pads can destroy other brake components.”
Mr Cedaro says costs to fix problems that could be easily avoided by following a simple maintenance schedule, can potentially run into many thousands of dollars.
Most car manufacturers issue a manual which sets out recommended service intervals. For new cars, skipping services or not fixing items in a timely manner could impact your warranty coverage.
Are there ‘early warning signs’ a car might be about to cost you a lot of money at a mechanic?
There are some telltale signs that a car might be having difficulty and need some mechanical attention according to Mr Cedaro, which can include:
- Loss of power
- Unusual noises
- Increased exhaust smoke
- Uneven “pulling” or tracking of a vehicle to one side.
“In short, do not ignore a warning light,” is Mr Cedaro’s firm advice.
Are there any benefits mechanically to owning an older car?
There can be many benefits to owning an older car, says Mr Cedaro, including styling and often the quality of build.
“Mechanically… they ‘don’t build them like they used to’: meaning that a well maintained older vehicle that was built to do a lot higher mileage would outlast [many] a current day model,” he says.
Are new cars safer than older cars?
While there are benefits to keeping an older car, a big factor to consider is safety. You might think an older car’s sturdy construction makes it a safer choice, but that’s not necessarily the case.
Australia’s car safety testing program, ANCAP, released industry-leading research in 2017, revealing that fatality rates for accidents involving older vehicles (built before 2000) are four times higher than newer vehicles.
It’s also worth keeping in mind that safety standards are updated over time, meaning that a car with a 5 star safety rating from ten years ago isn’t comparable to a 5 star rated vehicle made today.
How can you dispose of a car?
If you decide to replace your car, there are a few options to consider:
- Selling it privately, such as by listing it on an online car sales site. You may have to get a roadworthy certificate before you can sell your car yourself, depending on where you live in Australia.
- Trading it in. You may be able to exchange your old car for a discounted price on a newer car from a new or used car dealer. You may or may not need a roadworthy, depending on the outcome of your negotiations.
- Donating or giving it away. Mr Cedaro says there are various groups located around Australia that will come and collect your vehicle and dispose of it for you, including not-for-profit groups such as Kids Under Cover.
When a car has come to the end of its life, and you have decided to no longer repair it, there are a few options you may like to consider:
- Local government dump/recycling centres: Some councils allow residents to take a car to a council-owned recycling centre or landfill site and leave it there, either for a fee or for free, depending on the council
- Car recyclers/wreckers, who could potentially pay you money to scrap it, or remove it for free in exchange for scrapping rights
- Break it down for parts. If you have mechanical knowledge, you could do the job of the wreckers yourself.
The comparison rates for car loans are based on credit of $30,000 and a term of 5 years, unsecured, unless otherwise stated.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Canstar may earn a fee for referrals from its website tables, and from Sponsorship or Promotion of certain products. Fees payable by product providers for referrals and Sponsorship or Promotion may vary between providers, website position, and revenue model. Sponsorship or Promotion fees may be higher than referral fees. Sponsored or Promotion products are clearly disclosed as such on website pages. They may appear in a number of areas of the website such as in comparison tables, on hub pages and in articles. Sponsored or Promotion products may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The table position of a Sponsored or Promoted product does not indicate any ranking or rating by Canstar. For more information please see How We Get Paid.
Cover image source: SKT Studio/Shutterstock.com
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.

The comparison rates for car loans are based on credit of $30,000 and a term of 5 years, unsecured, unless otherwise stated.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
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