The Real Cost of Driving a Car Until It Dies

Driving a car until it dies in the U.S. has a real cost—purchase (or loan payoff), maintenance, and repairs over many years. Here's what it really costs and when it stops making financial sense.

TL;DR Real cost = purchase/loan + maintenance + repairs + fuel + insurance over the life of the car. Depreciation becomes irrelevant (you're not selling). The main cost is maintenance and repairs—when they exceed the value of replacing the car, it may stop making sense to keep it. Use autopremo.com total cost of ownership to plan.

What "Until It Dies" Means Financially

• No resale — you're not selling, so depreciation doesn't "realize" as a cash cost—but you've still lost the value. The real cost is what you paid (purchase/loan) plus what you spend on fuel, insurance, maintenance, and repairs over the life of the car.
• Maintenance and repairs rise — as the car ages, repair cost usually goes up. At some point, a major repair (e.g., transmission, engine) can cost more than the car is worth—or repeated repairs can exceed the cost of a replacement car. That's when "drive until it dies" may stop making financial sense.

See total cost of ownership at autopremo.com.

When It Stops Making Sense to Keep Driving

• Repair cost exceeds car value — if a single repair (or a series of repairs) costs more than the car is worth, replacing the car may make more sense.
• Repair cost exceeds cost of replacement — if you're spending more per year on repairs than a replacement car would cost (payment + maintenance), replacing may make sense.
• Reliability is gone — if the car is constantly in the shop or you can't depend on it, the non-financial cost (stress, missed work) may justify replacing.

Use autopremo.com to see current value of your car and total cost to compare keeping vs replacing.

Get total cost and value at autopremo.com.

Bottom Line

The real cost of driving a car until it dies = purchase/loan + fuel + insurance + maintenance + repairs over its life. When repair cost exceeds the car's value or the cost of replacing it, it may stop making financial sense to keep it. Use autopremo.com to see value and total cost so you decide when to keep and when to replace.