Sell the car now or keep driving it: what actually makes more sense?
You’re sitting on a relatively new vehicle: a 2024 RAV4 Hybrid, not even two years old, already showing around 72,000 miles on the odometer. You log a lot of miles for work, and you financed it for about $32,000 on a four‑year loan at 2.99% APR. Now you’re wondering:
Is it smarter to keep this car long-term, running it “into the ground,” or should you sell while it’s still relatively new and before the mileage spikes over 200,000?
Let’s break down the decision from several angles: cost, reliability, depreciation, and your personal situation.
—
1. The core trade-off: depreciation vs. ongoing costs
Every car loses value over time, but *how* it loses value matters.
– Early years = steep depreciation:
The first few years are when a car’s value drops the fastest. You’ve already taken most of that initial hit by buying new and driving 72,000 miles in under two years.
– High mileage = lower resale value:
Because you drive a lot, your car will quickly fall into “high-mileage” territory. That lowers its resale value, even if it’s mechanically sound.
– Keeping the car longer = lower cost per mile:
Once you’ve absorbed the initial depreciation, each additional mile you put on the car tends to lower your *cost per mile*, as long as repair and maintenance costs stay reasonable.
Given your situation, you are already deep into the “heavy use” category. Selling soon means you lock in some remaining value, but you’d be jumping into another car that will immediately start depreciating from a higher price point.
—
2. Loan and interest: why your financing matters
Your financing terms are actually quite good:
– Purchase price: ~$32,000
– Term: 4 years
– APR: 2.99%
At that interest rate, your cost of borrowing is relatively low. That tilts the scales slightly *toward* keeping the car, because:
– You’re not bleeding money on interest.
– Starting over with a new car at today’s rates could mean a higher APR and a more expensive loan overall.
– A short 4-year term means you’ll be payment-free sooner if you keep the vehicle.
Selling and upgrading to a new car would likely come with a higher purchase price and possibly a worse interest rate, increasing your monthly outlay and long-term cost.
—
3. Reliability: how long can a RAV4 Hybrid realistically last?
Toyota hybrids, including the RAV4 Hybrid, have a strong reputation for longevity and reliability when properly maintained. While nothing is guaranteed, many owners see:
– 150,000–200,000+ miles without major issues
– Some hybrids lasting well past 250,000 miles with routine care
If you’re already at 72,000 miles in under two years, and your driving pattern continues, you might hit 200,000 miles in just a few more years. That *sounds* like a lot, but this is well within the expected life range for a well-maintained Toyota hybrid.
Key points in favor of driving it longer:
– Hybrids are engineered to handle high mileage, especially for commuting and highway driving.
– Toyota’s hybrid systems are known for robust design and relatively low failure rates compared to some competitors.
– With consistent maintenance, the biggest cost risks (like hybrid battery replacement) often appear much later in the car’s life, if at all.
—
4. Maintenance and repair costs vs. replacing the car
Over time, your costs shift from depreciation and financing toward maintenance and repairs. The main question is whether those future repair costs will exceed the cost of replacing the car earlier.
What to expect as the miles climb:
– Routine maintenance: Oil changes, filters, tires, brakes, fluid changes – these are predictable and relatively modest expenses per mile.
– Wear items: Suspension components, more frequent tire replacements (because of your high mileage), possibly brake work – these become more common as mileage increases.
– Hybrid-specific components:
– The high-voltage battery can eventually degrade, but many last a decade or more.
– If a hybrid battery fails out of warranty, it can be expensive, but it often happens much later than 150,000–200,000 miles for many owners.
Compare that to replacing the car:
– A new vehicle means restarting the depreciation curve at a higher purchase price.
– Higher monthly payments are likely, especially if interest rates or car prices are higher now.
– Insurance can sometimes be higher with a newer, more expensive vehicle.
For someone who drives a lot, the economically rational move is often to keep a reliable vehicle for as long as it’s mechanically sound and safe – because each additional year you own it spreads the initial cost over more miles.
—
5. Resale timing: is there a “sweet spot” to sell?
You might be wondering if there’s a perfect mileage window where it’s best to sell before the car becomes “too high mileage.”
In your situation:
– You’ve already crossed what many buyers consider the “low-mileage” threshold. A 2-year-old car with 72,000 miles is firmly in high-use territory.
– Within a few years, you’ll be approaching 150,000–200,000 miles if your driving continues at this pace.
– The car’s value will decline over time, but the major depreciation hit has already happened.
Selling now would capture more value than selling at 200,000 miles, but that doesn’t automatically mean it’s the best financial decision. You’d need to:
1. Estimate what your car is worth today vs. what it might be worth in, say, 2–3 years at much higher mileage.
2. Compare that to the extra cost of buying and financing another vehicle, plus the immediate depreciation on the replacement.
In many real-world cases, keeping the current reliable car and driving it much longer still wins out financially, especially when you’re already “underwater” on the depreciation curve.
—
6. Risk tolerance and peace of mind
Money isn’t the only factor. You also have to consider your comfort level with:
– Potential breakdowns: If you travel a lot for work, reliability is crucial. But a relatively new Toyota hybrid with proper maintenance is statistically more reliable than a random used car or even some new models from less reliable brands.
– Unexpected repair bills: Even if they’re rare, big repair costs can be stressful. Some owners prefer to drive newer cars to minimize that anxiety, even if it costs more overall.
– Time and logistics: Do you have time to deal with repairs and maintenance if something goes wrong on a high-mileage car? Or does your lifestyle demand constant, trouble-free operation?
If peace of mind is more valuable to you than extracting every dollar of value, you might lean toward replacing earlier. If you prioritize financial efficiency and you’re okay with occasionally handling repairs, keeping the car longer typically wins.
—
7. How your driving pattern changes the math
Your situation is unusual in one big way: you rack up miles very quickly.
That has a few important implications:
– You reach “high mileage” much faster than the average driver, so mileage-based depreciation hits you sooner, regardless of the car’s age.
– But your use is likely mostly highway driving, which is generally easier on the engine and components than short, stop‑and‑go city trips.
– High annual mileage makes the *cost per mile* metric much more important than the *cost per year*. A reliable hybrid that gets good fuel economy and requires only normal maintenance can be financially superior to cycling through newer vehicles more often.
Because of your intense usage, it often makes the most sense to choose a durable, efficient vehicle and keep it for as many miles as practically possible. The RAV4 Hybrid fits that profile quite well.
—
8. Warranty and coverage: where are you in the protection window?
Consider these questions:
– Are you still within the basic or powertrain warranty?
– What’s the coverage for the hybrid system and battery in your region?
– Did you purchase any extended warranty or service plan?
If major components are still under warranty for several more years or tens of thousands of miles, that’s another argument for keeping the car:
– You have coverage during the highest‑mileage part of its early life.
– Any major defect likely shows up while still protected.
– You benefit from extended peace of mind without paying for a brand‑new vehicle.
Once the car is well outside warranty and approaching very high mileage, you can reevaluate based on its condition and any repairs that have appeared.
—
9. Scenario comparison: keep vs. sell
To simplify, imagine two main scenarios:
Scenario A: Keep and drive it into the ground
– Keep the RAV4 Hybrid until well past 150,000–200,000 miles, assuming no catastrophic issues.
– Continue paying off the loan; in a relatively short time, the car is paid off and you have no monthly payment.
– Maintenance and repairs slowly climb over time, but you avoid a new car payment and fresh depreciation.
– Cost per mile stays relatively low because you spread the original $32k over a very large number of miles.
Scenario B: Sell soon and replace with a new (or newer) vehicle
– Sell while the car still has relatively “young” model year status but high mileage.
– Use the proceeds and possibly some equity (if you have it) as a down payment on a newer car.
– Take on a new loan, likely at a higher price point and possibly a higher interest rate.
– Restart the depreciation cycle, paying a premium for the feeling of having fewer miles and possibly updated features.
Financially, Scenario A is usually more efficient, especially when the current vehicle is from a reliable brand with a strong hybrid system and you’re driving a lot each year.
—
10. When selling does make more sense
There are circumstances where selling sooner could be the better choice:
– Your needs are changing:
You might need a different type of vehicle (larger, smaller, different configuration) that fits your work or personal life better.
– You can’t stand the idea of high-mileage ownership:
If anxiety about future repairs or breakdowns is going to bother you constantly, the mental cost might outweigh the financial logic.
– You’re offered unusually strong trade-in value:
If, for some reason, used prices are unusually high for your model and mileage, and a dealer or buyer offers a surprisingly good price, it could tip the scales toward selling.
– You foresee major expensive repairs coming soon:
If an inspection reveals emerging issues that could be very costly, and you’d rather reset the clock with a newer vehicle, selling early might protect you from a large one‑time hit.
—
11. Practical steps to decide
To make a grounded decision, you can:
1. Get an accurate current market value of your RAV4 Hybrid (based on year, trim, mileage, and condition).
2. Check your loan payoff amount and calculate your equity (or negative equity).
3. Estimate total ownership costs if you keep the car for another 3–5 years:
– Remaining loan payments
– Expected routine maintenance
– A conservative allowance for potential repairs
4. Compare that to the cost of a replacement vehicle:
– New purchase price
– Projected monthly payment and total interest
– Insurance differences
– Fuel efficiency differences (if any)
In most realistic estimates, keeping the RAV4 Hybrid and driving it to a high mileage will result in lower total cost, especially with your low APR and the model’s strong reliability record.
—
Conclusion
Given your specific situation — a nearly new 2024 RAV4 Hybrid with 72,000 miles, a low 2.99% APR loan, and very high annual mileage — the more financially sound move is generally to keep the car and run it for as many miles as you reasonably can, assuming:
– It’s mechanically healthy.
– You stay on top of maintenance.
– You’re comfortable owning a high-mileage vehicle.
Selling now and buying another car will likely increase your long-term costs, restart heavy depreciation, and saddle you with a higher overall financial burden, even if you enjoy a lower odometer reading on the newer car.
If your priority is minimizing total cost per mile and making full use of the money you’ve already sunk into this vehicle, driving it “into the ground” is the strategy that most often wins.