Think keeping that Toyota forever saves money? Think again.

Conventional wisdom suggests that holding onto a “reliable” car like a Toyota or Honda for as long as possible is a sound financial decision. However, recent analyses indicate that this strategy may not always be cost-effective.

The Hidden Costs of Extended Ownership

While vehicles from brands like Toyota are renowned for their longevity, the expenses associated with maintaining an aging car can accumulate significantly. According to a report by AAA, the average annual cost to maintain a new car in 2024 was $12,297, encompassing maintenance, repairs, insurance, and depreciation. As cars age, maintenance and repair costs tend to increase, potentially offsetting the benefits of avoiding a new car purchase.

Depreciation vs. Maintenance: Striking the Right Balance

Depreciation is often the most substantial cost in the early years of vehicle ownership. For instance, Lending Tree notes that new cars can depreciate by up to 60% over five years. However, as a car ages and its value plateaus, maintenance and repair expenses can rise sharply. This shift means that the financial advantage of avoiding depreciation diminishes over time, especially if significant repairs become necessary.

When to Consider Selling

Determining the optimal time to sell a vehicle involves weighing various factors. Financial Samurai suggest that you should own your car for about 10 years, or until the cost of repairs exceeds its value. Additionally, if a car requires frequent repairs or if safety features become outdated, it may be more economical and safer to invest in a newer model.

Here's a helpful checklist to help you determine whether it's time to sell your car.

✅ Is It Time to Sell Your Car? — A Self-Assessment Checklist

• 🔧 Are repairs becoming frequent or costly?

  • Are you facing repairs that cost more than the car’s current value?

• 💰 Am I spending more on maintenance than I would on a newer vehicle?

  • Compare total annual maintenance costs vs. the average monthly payment for a newer car.

• 🚨 Are safety features outdated or missing?

  • Does your car lack modern safety features like blind-spot monitoring, backup cameras, or lane assist?

• 📉 Has the car’s value dropped below $3,000–$5,000?

  • At a certain point, depreciation levels off—making future repair costs riskier.

• 🚙 Do I feel confident driving long distances or in bad weather?

  • If you hesitate to take road trips or worry about breakdowns, it might be time to upgrade.

• 🛑 Has my car left me stranded in the past year?

  • Reliability issues are often a red flag that major components are nearing the end of life.

• 🕒 How old is the vehicle — and how many miles are on it?

  • If your car is 10+ years old and/or over 100,000 miles, bigger repairs may be around the corner.

• 🔄 Has my lifestyle changed?

  • Do you need more space, better fuel economy, or fewer emissions (e.g., switching to a hybrid or EV)?

• 💸 Could I get a strong resale value now due to high used car prices?

  • Market conditions fluctuate—sometimes it’s financially smart to sell while your car still has value.