Short answer: Compare the total cost of each path over the same number of years. Keeping it costs the repair quote now plus maintenance that grows each year, fuel, insurance, registration and downtime, minus its end value. Replacing costs the price minus your trade-in plus the new unit's running costs, minus its end value. The lower total wins on your numbers.
Compare the life-cycle cost of each path
Life-cycle costing adds up everything a vehicle costs over a set period: purchase or repair, maintenance, fuel, insurance, registration and downtime, minus what it's worth at the end. Fleets use it for repair-or-replace decisions because an aging unit's running costs keep rising, while a replacement costs more to own but less to run.
What goes into "Keep"
- The repair quote, paid now
- Maintenance per year, growing by a percentage each year
- Fuel, plus insurance and registration
- Down days per year × the cost of a down day
- Minus what the unit is worth at the end of the period
What goes into "Replace"
- The replacement price minus your trade-in (as-is, before the repair)
- The new unit's maintenance, with its own growth rate
- Its fuel, insurance and registration, and down days
- Minus what it is worth at the end of the period
The break-even repair quote
A break-even repair quote is the repair amount at which keeping the current vehicle and replacing it cost exactly the same over your chosen period. A shop quote below it means repairing is cheaper on your numbers. A quote above it means replacing is cheaper. It's the number to have in hand when the shop calls.
Discount rate, present value and equal annual cost
The discount rate makes future years count for a little less, using present value, so you can weigh future dollars by your cost of borrowing. At 0% the calculator uses simple totals. Above 0%, the yearly figure becomes the equal annual cost, which is the steady yearly amount each path is worth.
Worked example (fictional box truck)
Example only. Fictional numbers, not typical costs or savings.
These are the inputs the calculator's example button fills in: 4 years, 0% discount rate, 15,000 miles per year, $250 per down day.
| Keep | Replace | |
|---|---|---|
| Up front | $6,800 repair | $62,000 price minus $11,000 trade-in |
| Maintenance, year 1 | $4,200, growing 15% | $900, growing 10% |
| Fuel per year | $5,400 | $4,900 |
| Insurance and registration | $1,800 | $2,400 |
| Down days per year | 9 | 2 |
| End value | $4,000 | $28,000 |
With those inputs the calculator shows a 4-year total of about $61,572 to keep and $58,377 to replace, roughly $15,393 vs $14,594 a year ($1.03 vs $0.97 per mile). The break-even repair quote is about $3,605, so a $6,800 quote makes replacing cheaper on these fictional numbers. Your own numbers will give a different answer.
Units on hours: equipment and machines
Yes. Set "Measured in" to hours and the Repair or Replace Calculator shows cost per hour instead of cost per mile, which suits machines, tractors and other equipment tracked on an hour meter. It also supports miles and kilometres. Enter use per year in the same unit you chose.
What this leaves out
The calculator is an estimate only, not financial or tax advice. It leaves out taxes, depreciation schedules and loan terms. "Cheaper on your numbers" depends entirely on what you enter, so check big decisions with your accountant. You can copy a summary, download a CSV or print the result.
Spot which units to review
The Small Fleet Maintenance Tracker is an Excel and Google Sheets template. It calculates cost per mile or per hour for every unit, works out what is due by miles, km, hours or days, and flags units worth reviewing for replacement, with the reasons.
Also sold on Etsy in the shop SnackerscuffedStore.
Running a small agency rather than a fleet? Look for the Small Agency Client & Proposal Hub from snackerscuffed.
FAQ
How do you decide whether to repair or replace a vehicle?
Compare the total cost of each path over the same number of years. Keeping it costs the repair quote now plus maintenance that grows each year, fuel, insurance, registration and downtime, minus its end value. Replacing costs the price minus your trade-in plus the new unit's running costs, minus its end value. The lower total wins on your numbers.
What is a break-even repair quote?
A break-even repair quote is the repair amount at which keeping the current vehicle and replacing it cost exactly the same over your chosen period. A shop quote below it means repairing is cheaper on your numbers. A quote above it means replacing is cheaper. It's the number to have in hand when the shop calls.
What is life-cycle costing for fleet vehicles?
Life-cycle costing adds up everything a vehicle costs over a set period: purchase or repair, maintenance, fuel, insurance, registration and downtime, minus what it's worth at the end. Fleets use it for repair-or-replace decisions because an aging unit's running costs keep rising, while a replacement costs more to own but less to run.
Why include downtime in a repair or replace decision?
A unit in the shop still costs money: a rental, a crew waiting, or a job that slips. To include it, multiply down days per year by what one down day costs you. Even a rough daily figure makes the comparison more honest, because older units usually spend more days out of service.
What does the discount rate do in the calculator?
The discount rate makes future years count for a little less, using present value, so you can weigh future dollars by your cost of borrowing. At 0% the calculator uses simple totals. Above 0%, the yearly figure becomes the equal annual cost, which is the steady yearly amount each path is worth.
Does the repair or replace calculator work for equipment measured in hours?
Yes. Set "Measured in" to hours and the Repair or Replace Calculator shows cost per hour instead of cost per mile, which suits machines, tractors and other equipment tracked on an hour meter. It also supports miles and kilometres. Enter use per year in the same unit you chose.