What Keeping Your Car for 10 Extra Years Actually Saves You

What if the smartest car purchase you ever make is not buying one? Sounds dramatic until you see what a new car costs these days.

Kelley Blue Book reported that the average new vehicle sold for $49,461 in April 2026. Experian’s first quarter auto finance report showed that the average new-car loan reached $43,925 and the average payment grew to $770 a month in the first quarter of 2026. 

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But when you divide it into monthly payments, that $50,000 new car doesn’t seem too expensive anymore. It just becomes another monthly bill to pay. Except that bill will follow you for years.

Alternatively, here's what keeping your car for 10 extra years actually saves you.

But Wouldn’t a Loan be Cheaper than Repairs?

A repair bill feels worse than a car payment because it hits all at once. One morning, the mechanic tells you it’ll cost $1,600 to repair your car and suddenly the dealership down the road seems pretty reasonable.

But that comparison is usually rigged against your current car. You’re comparing one ugly repair to one nice monthly payment, not repair costs against the entire cost of a new loan.

Basically, car loans will almost never be cheaper than repairs unless your car is 20+ years old and has something like 300,000 miles on it. 

The average length of a new-car loan is now 69.48 months, per Experian. That’s about $53,500 in payments before you even factor in insurance changes, registration fees, taxes or the money your new car loses to depreciation.

And yes, that estimate gives the older car a pretty big repair budget, which is fair enough because keeping an old car is not free. Per Consumer Reports, maintenance and repair costs rise as cars age and the difference between brands can be thousands of dollars over a 10-year period. 

That said, a new car will almost always be more expensive in the long run.

What About that Addictive 'New-Car Smell'?

AAA’s 2025 Your Driving Costs study estimated that owning and operating a new vehicle costs $11,577 per year or about $965 per month. The biggest hidden cost is depreciation, which AAA estimates at $4,334 per year. 

Your paid-off car may not have the giant screen or that new-car smell, but financially, it has one beautiful feature: no loan.

Should You Drive Your Paid-Off Car Forever?

This is no longer a fringe “drive it 'till the wheels fall off” idea. The average age of a vehicle on U.S. roads in 2025 was 12.8 years, according to S&P Global Mobility.

There is, of course, a point where loyalty becomes denial. If your car has rust, ongoing safety problems, hard-to-find parts or repairs and the cost of repairs exceeds the car’s value, buying a new one can be the most financially sound decision for you. 

After all, the point is not to idealize an unreliable clunker you despise. 

But if you drive a reliable, safe, paid-off vehicle, keeping it for another 10 years could save $38,000 to $45,000.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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