This was virtually unheard of just a few years ago, but times have changed. According to www.dispatch.com, Eric Evarts asks, "Do you really need a new car right now, or is there a way to eke a few more months out of your old car?" If you've got an older car that lacks modern safety features, you're more likely to be in the market to buy a car. But repairing your old car might make more sense than replacing it"
"When zero-down financing and easy credit terms ruled, a lot of people got used to buying a new vehicle when repairs on their current car got to be pesky... brake jobs aren't that expensive compared with new-car expenses." Jack Gillis of the Consumer Federation of America and author of The Car Book adds, "Even shelling out for a catastrophic repair, like $5,000 for a new engine, might be wiser than buying another car. If you add up a 10 percent down payment on a new vehicle, plus higher insurance and monthly loan payments, it's very easy to eat up that $5,000 and you'll see how much more that new car will really cost you."
And don't forget the added GAP insurance costs too when purchasing a new car.