Fix it or junk it? What to do with the old car

If your car is paid for (or almost paid for) and the repairs don’t cost much, it’s probably a good idea to keep it.

The key to keeping a car running for 200,000 miles is in the care and maintenance you give it. Change the oil regularly, rotate the tires, and don’t let small problems turn into big ones.

If your car has high mileage, its days might be limited, but at the same time, you probably won’t get much by selling it. As such, it’s smart to drive the vehicle until it dies. Paying for cheap repairs on high-mileage cars can be a good idea, especially if the car is paid off. With expensive repairs, you may be better off upgrading.

One important factor to consider is rust. If your car is rusting, it’ll get worse with time. Rust can cause extensive damage to exhaust and power train components, among other things. And with severe rust, it may only be a matter of time before components fail. It might be best to put your rust bucket out to pasture.

Another consideration: The market for used cars is better than ever. CoPilot has found that used car prices are up 43 percent above projected normal levels. Cars that should retail for $23,000 are instead retailing for $33,000. Kelly Blue Book also reports record-level prices for new cars, with vehicles costing about $48,000 on average.

If the used car you bought for $12,000 has less than 50,000 miles on it, you might be able to recover the whole cost in the current used car market. If you sell, you could put that money toward a new car. New car financing has very low interest, and with a high credit score, you might even be able to finance it for zero interest. But remember, the average price of a new car has hit record highs, according to KBB.com.