How many years should you keep a car?

You should keep a car until maintenance costs outweigh payments or its safety/tech lags significantly, often around 5-10 years for good value, but many drive them 10-14 years or longer, especially if well-maintained, reliable, and paid off, as modern cars last over 200,000 miles; the best time depends on balancing depreciation, repair costs, and lifestyle needs.

How long should you keep a car after buying it?

Depends, but 5-6 years is pretty common. Longest was 12 years, sometimes 1 or 2. I like to get 1 year for every thousand dollars I paid for the car, and hopefully no catastrophic failures within the time frame of owning it.

Is it worth keeping a car for 10 years?

Absolutely. A car's value dips, in a non linear way, from its first zero to 15 years. After that the curve sort of flattens and its value has more to do with its condition than age. But a lot of cars are good for 20 years or more.

What age should you get rid of a car?

The average lifespan of a car is around 10 - 12 years. If your car is older than that and has excessed a mileage of over 100,000, it might be time to scrap your car and replace it.

How long should you keep a car before trading it in?

The sweet spot to trade in a car for maximum value is often 3 to 5 years, hitting around 30,000 to 60,000 miles, to avoid the steepest depreciation while still having a modern, reliable car under warranty. However, the best time depends on your situation: trade when you have positive equity, major repairs loom (around year 5-8), your lifestyle changes, or you hit a key mileage milestone where value drops faster (like 60k miles). 

Keep Making Car Repairs or Just Buy a New One?

What is the 20 4 10 rule for cars?

The "20/4/10" car rule is a financial guideline for affordable car buying: make a 20% down payment, finance the car for no more than 4 years (48 months), and keep your total monthly car expenses (payment, insurance, gas, etc.) under 10% of your gross monthly income. This strategy helps prevent overspending and keeps you from being "upside down" on your loan. 

When should I not trade in my car?

You should not trade in your car when you're "upside down" (owe more than it's worth), especially early in the loan, as you'll just roll that negative equity into the new loan, making your new payments higher and costing you more. Also, avoid trading too soon (within the first few years) due to rapid depreciation, if your loan has prepayment penalties, or if the trade-in is the only way to afford a new car rather than a helpful boost. 

At what point should I get rid of a car?

The Cost of Repairs is More Than Your Junker's Worth

You know it's time to junk your car when you've got a few bills adding up. Consider your transmission and engine. These two components of your car will break the bank if you're not prepared for their breakdowns, leaving you with a broken car.

What is the 20 4 rule for buying a car?

The 20/4/10 Rule at a Glance

The rule is quite simple: put at least a 20 percent down payment on the vehicle purchase, aim for a loan term no more than 48 months, or four years, and keep the sum of vehicle-related expenses no more than 10 percent of your monthly income.

What is the average lifespan of a car?

The average vehicle lifespan is around 12 years or 200,000 miles, but modern cars often exceed this with proper maintenance, reaching 250,000-300,000+ miles, thanks to better engineering and owner care like regular servicing and smooth driving. Factors like reliability, climate, and driving habits greatly influence how long a car lasts, with some studies showing average junked car age around 16.5 years and mileage of 156,000+. 

What is the 8% rule when buying a car?

The 20/3/8 rule is a guideline that suggests you put 20% down on a car and repay the loan over three years. Applying the rule correctly will also require your monthly payment and car expenses be 8% or less of your income.

Which brand of car lasts the longest?

Toyota consistently ranks as the top brand for longevity, with high percentages of its vehicles reaching 250,000+ miles, followed closely by its luxury brand Lexus, and then Honda and its luxury brand Acura, all Japanese brands known for exceptional durability and reliability over the long term. These brands dominate studies by iSeeCars.com and Kelley Blue Book for making vehicles that withstand the test of time. 

Is mileage or age more important?

Neither mileage nor age is definitively more important; both matter, but maintenance history and overall condition are the most crucial factors, as a well-kept high-mileage car can be better than a neglected low-mileage one, though age brings issues like degrading rubber parts and newer cars offer better safety tech. Prioritize a vehicle with thorough service records, as consistent upkeep prevents wear, regardless of the odometer reading or calendar year, say AAA, Griffin Ford Fort Atkinson, and Kalispell Ford. 

What is the red flag rule for car dealers?

The Red Flags Rule (the Rule), enforced by the Federal Trade Commission (FTC), requires automobile dealers to develop and implement a written identity theft prevention program designed to identify, detect, and respond to warning signs—known as “red flags”—that indicate that a customer or potential customer could be ...

What is the 3 6 second rule?

The 3/6-second rule is a driving safety guideline for maintaining a safe following distance: use 3 seconds in normal conditions and increase to 6 seconds (or more) in adverse weather or with large vehicles, measured by counting seconds after the car ahead passes a fixed point (like a sign) until your car reaches it, giving you time to react and stop safely. This rule prevents rear-end collisions by ensuring enough time for perception, reaction, and braking. 

Why Dave Ramsey says not to finance a car?

“Cars, trucks, RVs, boats, and everything that has motors and wheels go down in value,” Ramsey wrote recently. “NEVER finance them, because they go down in value and you get stuck in them. Don't let debt trap you in something that's losing value every day. Save up, pay cash, and own it outright.”

What is a red flag when buying a car?

Use your best judgment; if a car looks or feels wrong, don't buy it. Look out for excessive rust, a worn tailpipe, or illuminated dash lights. During your test drive, pay special attention to how the car handles and sounds. If something's off, ask the seller and double-check the title and history report.

What should a $30,000 car payment be?

For a $30,000 car, your monthly payment could range from around $500 to over $700, depending heavily on your down payment, loan term (e.g., 60 vs. 48 months), and interest rate (APR), with longer terms and higher rates increasing payments, while a larger down payment (like 20%) lowers them significantly. For example, with a $3k down payment, 5.8% rate, and 60 months, it's about $520; with a good rate on a 4-year loan, it could be $733. 

What is Dave Ramsey's rule on car buying?

Dave Ramsey's core car buying rule is to pay cash for a reliable used car, avoiding car loans entirely because cars lose value, and ensuring the total value of all your vehicles doesn't exceed half your annual income, emphasizing that things that depreciate shouldn't be financed. He advocates buying what you can afford outright to prevent debt, suggesting you save up and buy a modest, dependable vehicle instead of a new car that rapidly loses value.
 

When to walk away from a car?

Regardless of if you're purchasing from a private party or from a car dealership, if the seller of the vehicle won't show you a CarFax report or the reconditioning repair work, that's a sure sign that you should walk away from the car deal.

At what mileage should you sell your car?

30,000 to 60,000 Miles

It's a good idea to sell your car before it hits 60,000 miles if you don't want to spend a lot of money on repairs and replacement parts. During this mileage bracket, your car should be about five years old, meaning it'll still command a substantial amount.

What is considered a junk car?

What's considered a junk car? A junk car is a vehicle of any age that is damaged or defective in a way that makes it inoperable or unsafe. But if your car still runs, you can try selling it before sending it off to car heaven.

What is the best mileage to trade in a car?

The best mileage to trade in a car is typically under 30,000 miles for premium value, but the most practical time is often around 30,000-40,000 miles (before basic warranty ends) or 60,000-70,000 miles (before powertrain warranty expires and costly repairs loom), as you maximize value before significant depreciation and major maintenance costs hit, though well-maintained cars still hold value past 100k miles. 

How long should you keep a used car before you trade it in?

By year three, depreciation begins to level off, and you might have positive equity. After year five, the risk of maintenance costs increases significantly. Trading within that three-to-five-year window often means that you're maximizing value while still driving a reliable, relatively modern vehicle.