I have a 1996 Saturn that I intend on keeping, but mostly because in the course of buying it (which I am still doing…) I have managed to replace most of the major components in the car. Literally, the only two things left to replace that are major are the engine and the transmission. And since both of those cost about the same (on my car) to repair or to replace, and I’ve replaced everything else… I will probably keep the car when one, the other, or both fail and replace them, too.

But, as I said, and as others have said, it depends on your situation. If you have more newer parts on the car than not, then the choices to me would be (A) buying a totally new car, or (B) fixing the current one. Buying a “new” used car is generally a toss-up, and I don’t generally like toss-ups like that.

At some point in the next few years it’ll start requiring more and more non-routine works. Once it does, I’ll start shopping around.

It’s not a hard and fast rule, but I hoope I’ll figure it out before I’ve poured too much money into it.

I did the math last summer and found that it was cheaper to move closer to work than to continue my commute over a 1 year period. Owning an average 1995 car in this area costs about $4k/year (insurance, fuel, repairs/maintenance, capitol costs over time) and commuting cost an additional $8k (value of my time).

As for fix vs. replace, you’ll find a difference between repair, buy used, and buy new (depending on the vehicles in question). Consumer reports usually runs numbers that include average failure rates overall for most vehicles. In my area of Canada, I budget $1k/year in maintenance for a newer import, and up to $3k/year for anything 10 years or older. A better vehicle (and better maintenance record) will require fewer repairs on average, so I use Consumer Reports car guides when replacing vehicles.