A car is not worth repairing when the repair cost exceeds 50% to 75% of the vehicle’s current market value. At that point, you’re putting money into a depreciating asset that may need more repairs soon. Selling or scrapping makes more financial sense.
Signs your car isn’t worth fixing:
- Engine or transmission failure (repairs often cost $3,000 to $7,000)
- Frame damage from a collision
- Severe rust affecting structural components
- Multiple systems failing at once
- The car has over 200,000 miles with recurring problems
Use the 50% rule as a guideline. If your car is worth $4,000 and needs $2,500 in repairs, that’s borderline. Factor in the car’s age, reliability history, and whether more repairs are likely.
Some repairs signal the end. A blown head gasket on a high-mileage vehicle, a failed catalytic converter on an older car, or accident damage beyond cosmetic fixes all point toward selling rather than repairing.
Once you decide repairs aren’t worth it, learn what to do with a car that isn’t worth fixing. You have several options depending on the vehicle’s condition.
