How to Avoid Holding onto a Car That’s Costing You Money

Is your car getting a few years old, and now you are thinking about when to get rid of your car? At this point, your car might start to cost more in repairs than to run it on a daily basis. Many Australian drivers cling to old cars without realising the repair bills, depreciation, and maintenance costs.

Above all, it’s more expensive to keep an old car running after a few years, as it becomes more expensive. So how can you avoid holding onto a car that is costing you money? In this article, we are going to share some financial and practical signs that your car is costing too much money. We will also discuss when and how you should sell your car instead of fixing it over and over again.

Why Some Cars Cost More Than You Think

Before you decide that a car is not worth fixing, it is important to understand what makes a car more expensive to own.

Depreciation & Value Loss

• New cars in Australia lose as much as 10-15% of their value the moment they leave the lot.
• By the end of three years, many vehicles have lost 40-50% of their original value.
• After five years, depreciation often exceeds 55-65%, depending on model and condition.

Running, Repair & Maintenance Costs

• According to Jacaranda Finance’s 2025 report, the average annual servicing, repairs and tyres cost around AU$1,828 per car.
• Fuel, registration, insurance, tyres, and general upkeep can add thousands of dollars each year.
• Hidden costs (insurance, CTP, licensing, etc.) also stack up over time.

Other Ongoing Costs

• Insurance premiums, registration fees, and compulsory third-party (CTP) insurance vary by state but are recurring annual expenses.
• Unexpected breakdowns or major services (for example, engine or transmission repairs) can cost far more than routine servicing.

What are the Signs to Sell Your Car?

Recognising signs you should sell your car early can save you money, stress, and hassles. Here are red flags to watch for:

Financial Signals

1. Repair bills are creeping above the car’s resale value
   • If the cost of a major repair is more than or approaching what the car is worth on the used market, it may not be worth keeping.
2. You’re spending more each year on maintenance than comparable newer car repayments or running costs.
   • For annual servicing, insurance + registration + fuel + unexpected repairs is close to what you’d pay in repayments. In this case, a better option is to sell the car and invest the money in a newer model.
3. Depreciation is steep and accelerating.
   • For cars older than 3-5 years with high kilometres, the value may decline faster than you expect. In this case, making resale sooner is more financially sensible.

Usage & Condition Signals

1. You’re using the car less, or it’s no longer reliable
   • Frequent breakdowns, long downtimes, or safety concerns are practical reasons to stop holding onto it.
2. Rust, structural wear, or high odometer reading
   • These degrade resale value, increase insurance risk, and mean repairs cost more.
3. Parts are becoming hard to source or expensive.
   • Especially for older or rare models, or if import costs or labour are high.

Opportunity Signals

1. You need the cash
   • Selling your old car can free up capital for a newer vehicle or fund other priorities.
2. Market demand is in your favour.
   • If your region has a good demand for used cars, you may get a better price now than if you wait for more wear & tear. In 2024 alone, more than 2 million pre-owned cars were sold nationwide.

When to Replace Your Car? Key Factors to Consider

If you are not sure about when to replace your car, then follow these steps while considering the factors mentioned below:

1. Calculate the Current Market Value

Explore the online marketplaces in Brisbane, QLD and find the same models on the market as your car. Find a few options and compare the prices to get a common figure. If the current market value seems way off from the actual value of the car, then it is probably better to sell it.

1. Estimate Upcoming Maintenance / Repair Costs

Get a quote for any major scheduled services, expected wear-and-tear (tyres, brakes), or likely breakdown repairs. If the repair is costing too much and it is exceeding the current market value of the car, then it’s time to sell.

1. Forecast Running Costs for Next 1–2 Years

The older a car becomes, the more costly it will be to run in the long run. These factors include fuel, insurance, registration fees, and possible breakdowns.

1. Compare Against a Replacement

Find a similar model in better condition on the market. Calculate its total cost (purchase price + running costs) over the next 1–3 years. This estimation can give you an idea if upgrading to a newer model would be more affordable in the long run.

1. Weigh Intangible Factors

The value of the car is not just limited to its fuel consumption or body condition. Also consider reliability, safety, inconvenience of breakdowns, resale value drop, your personal comfort & risk tolerance.

1. Make the Decision Point

If keeping vs selling yields a net financial loss (or risk you can’t tolerate), that’s your signal: it’s time to sell. In simple words, keeping an old vehicle might cost you more than owning a new one.

How to Sell Your Car Instantly?

Selling your old car can become a challenge if its condition is not right or if it costs a lot to keep. Hence, you might have to wait for months after listing your car online. Unless you get in touch with Cash for Cars Brisbane, as they give you the following benefits:

• Quick Payment: With Cash for Cars services in Brisbane, you get instant payments on the same day.
• Buy All Types of Vehicles: Even if your car is not running or if it’s dipped in rust, they can offer you up to $9,999 depending on the condition, make, and model.
• Free Towing Service: No need to take your car anywhere. Just send them the location and they will take it right from your lot without costing you a dime.
• Hassle-Free Process: From inspection to handling all the paperwork, Cash for Cars takes care of everything.

Final Thoughts

Once you understand when to get rid of your car, don’t wait for the decision. After considering the factors and performing the calculations mentioned in our blog, you can make a wise choice. With services like Cash for Cars, you can conveniently get the right value for your vehicle. Don’t hold onto a car that’s costing you money: explore your options, get a valuation, and take action today.