Back in 1981, a popular band known as The Clash had a smash hit with their song, “Should I stay or should I go?” If you have an older car, it may be asking you that same question. When should you repair your car, and when is it time to replace it? The following are some things you should consider that can help you answer that question.

First, it’s a good idea to find out how much your car is worth. You can do this by looking in the Kelly Blue Book. You’ll start with a base figure and either subtract or add to that amount based on car’s features, mileage and condition. Once you know how much your car is worth, find out what kinds of repairs are typical. A good place to find this information is through online searches or by checking Consumer Reports. This popular magazine is available at most public libraries, as well as online in some cases.

Compare the cost of anticipated repairs against the value of your car. One rule of thumb is that if a repair is going to cost 50 percent of the value of the car or more, it may be time to replace the car. Obviously, this rule of thumb won’t work in every situation. For example, if your car is worth $1,000 and a $500 repair will keep it going for another three months, it may be worthwhile to make the repair and spend your three months putting together a down payment and shopping for another car. However, if your car is worth $4,000 and anticipated repairs will total $3,000, then it may be time to get what value out of the car you can and use that toward the purchase of a new or new-to-you car.

If you have a trusted mechanic, they can provide you with valuable input about what they expect the life expectancy of your car will be. Consider the following example of a Volkswagen Jetta owner. The car is completely paid for, but needs regular repairs that average around $100 a month. That may seem like a lot, but there are few other cars that offer the same mpg and performance for only $100 a month. In addition, you may reach a point where most repairs are completed and the car can be driven for another 50,000-100,000 miles without incident.

This is where the advice from your mechanic comes in handy. In the situation above, it’s likely that the driver wouldn’t have felt comfortable making that investment in the car without the advice of a mechanic who knew the car was structurally sound and knew the repairs were chiefly things that were wearing out – once those items were replaced; the car would continue to run for some time. It’s also doubtful that any driver could have purchased a car for under $1,000 that would have given the same level of reliability and service.

But when it comes down to it, owners have to make the decision for themselves as to whether it’s time for their car to go. Consider repair costs versus the cost of payments on left on the car or the purchase of another car. And consider what those repair costs will actually buy you in terms of continued use. Finally, think about the costs of a new car in terms of financing and insurance. There’s no absolute right or wrong answer here – only what works best and makes sense for you.