Between the discount, the fees and the bad choices, some cars end up being expensive. To avoid this trap, automotive professionals rely on a very specific rule.
The cost of a car is never just about the price paid on the day of purchase. Over time, its value declines, sometimes quickly, while the bills continue to fall. Insurance, routine maintenance, technical inspection, tires, fuel, parking, small repairs: the bill grows silently. This is precisely what deceives many motorists. As long as the vehicle runs normally, they feel like everything is under control. However, there comes a time when, according to experts, a very simple rule allows you to know if the car is now too expensive.
According to Sean Wright, automotive specialist at Sell Your Problem Car, a company specializing in the repurchase of end-of-life vehicles, many owners keep their vehicle because it is functional and available, but are unaware that it is starting to significantly lose its value. Indeed, a car can continue to drive while becoming less and less financially attractive. Its rating drops, its age advances, the parts wear out and the costs become more regular.
Professionals in the sector therefore look at an important indicator: the ratio between what the car is still worth and what must be spent to keep it on the road. Insurance companies have long used this principle when deciding whether a damaged vehicle is still worth repairing. Sean Wright reminds us: “Insurers often declare vehicles wrecked when repair costs reach around 40 to 60 percent of their market value, which is roughly the 50 rule. If your car is approaching this threshold, it’s a clear sign that it may not make financial sense to continue investing in it.” This reasoning also applies to an individual faced with a large expense. Before signing a large quote, it can be useful to find out the selling price of your car.
Note that two identical models can have very different trajectories. A well-maintained car with a clear history and tracked parts can stay interesting for longer. Conversely, an unreliable or neglected vehicle can have multiple visits to the garage well before the end of its theoretical life.
Second-hand buyers know this perfectly well. They look at the general condition, the reputation of the model, the costs to be expected and the regularity of maintenance. In other words, just because a car is still running doesn’t mean it retains real value. A car can therefore seem economical because it is already paid for and still on the road. However, it is sometimes at this precise moment that it starts to cost the most. Doing this calculation at the right time helps avoid many unpleasant surprises.
