The Paid-Off Car vs. New Car Decision Gets Easier When You Run These 5 Numbers

A paid-off car can look expensive when a major repair arrives, but comparing repair costs with a new vehicle’s purchase price, trade-in value, ownership expenses and financing costs can reveal which option actually saves money – Shutterstock

A paid-off car can feel like a financial superhero until the repair bill arrives, while a shiny new car can look like the hero until the monthly payment starts eating the budget. The decision gets much easier when you stop comparing an old car with a new car and start comparing the actual dollars attached to each choice.

Five numbers can reveal whether that paid-off vehicle deserves another year in the driveway or whether replacing it makes more financial sense.