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New Car or Electric Vehicle? When Upgrading Makes Financial Sense
When Is It Worth Upgrading to a Newer Car or Switching to an Electric Vehicle?
Many drivers in Lithuania keep the same car for ten or even more years. Often this happens because replacing a vehicle seems complicated or expensive. However, the automotive industry is evolving quickly, offering a wide selection of new and used cars, while modern financing options make it possible to purchase a vehicle on installment plans whenever needed.
In most cases, the right moment to upgrade comes when the old car requires frequent repairs and its declining market value no longer justifies continued investment. Today, buying a new model straight from the dealership or choosing a used one is easier than ever — but which option should you choose? And could your next vehicle be an electric car?
In this article, we discuss when an old car becomes inefficient, the key signs that it’s time to replace your vehicle, and when it makes sense to switch to an electric alternative.
Operating Costs vs. Vehicle Value
Operating costs and the car’s current market value are usually the biggest indicators of when an older vehicle is no longer economical. In 2025, the average age of a first-time registered used car in Lithuania is about 10.3–10.5 years. This raises an important question — is it still worth keeping an aging vehicle?
Repair expenses, environmental taxes, and rapid depreciation often encourage drivers to consider a newer model or switch to an electric vehicle. Most used cars in Lithuania are imported from Germany (36% of all imports), with typical models being 7–12-year-old diesel cars.
Annual maintenance costs — repairs, insurance, and technical inspections — can reach €500–1000. Meanwhile, used car prices have increased by 12–15% over the past two years. After 5–7 years of ownership, a vehicle’s value may drop by 30–40%.
This makes purchasing a new or nearly new car a more practical choice — newer vehicles are in better condition, come with manufacturer warranties, and have lower running costs.
Technological Improvements and Safety Factors
Technology and safety systems are strong reasons to replace an older car. Features in older models quickly become outdated — even vehicles just 5–7 years old may lack modern driver assistance features or active safety technologies.
Updated Euro NCAP safety standards require advanced systems like improved airbags, automatic emergency braking, and lane-keeping assistance. Choosing a brand-new model or a certified used car ensures higher safety levels and provides peace of mind during everyday driving.
Environmental Impact and Taxes
Environmental concerns and rising taxes are pushing more drivers to reconsider keeping older cars. Maintaining an old diesel car is becoming increasingly expensive due to annual pollution taxes, making repairs worthwhile only to a limited extent.
On the other hand, newer petrol, hybrid, or electric vehicles are more eco-friendly and come with lower taxes. While diesel vehicles still account for about 62–64% of newly registered used cars, their share is slowly declining. In 2025, models such as the Toyota Yaris, Škoda Octavia, and Toyota RAV4 are gaining popularity as many buyers prefer hybrid or petrol options for lower running costs and tax advantages.
Is It Time to Buy an Electric Car?
Lithuania’s electric vehicle infrastructure is expanding rapidly — new charging stations are being installed, and many households are now using solar power systems. This makes charging an electric car convenient both at home and on the road.
In 2025, electric vehicle share in new transactions increased by about 17% compared to the previous year. Forecasts suggest that by 2030, the number of EVs in Lithuania may triple as charging networks grow and tax incentives continue.
If you're considering replacing your current vehicle with a new car or an EV, the investment often pays off — lower fuel and maintenance costs, better overall condition, and flexible financing possibilities such as leasing.
(You can read more about reducing EV driving costs here.)
When Is It Worth Upgrading to a Newer Car?
How can you tell that it’s time for a change? The following signs may indicate that upgrading your vehicle is the smarter choice:
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frequent and costly repairs;
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increased insurance and tax expenses;
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outdated comfort and safety technologies;
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low market value compared to ongoing investments.
Switching to a new or used car through leasing or financing can reduce running costs, improve daily driving safety, and provide a more modern, reliable vehicle.
An electric car becomes especially attractive if you have access to charging infrastructure or a home solar system. In many cases, replacing an old car with a nearly new or brand-new vehicle is an economically sound decision.
Visit BRC Auto
Visit BRC Auto to find out how much you can receive for your old car or explore which newer model might be right for you. Our specialists will evaluate your vehicle, discuss financing options, and help you choose the best solution tailored to your needs.
FAQ
1. When is it financially smart to upgrade to a newer car?
Upgrading becomes financially reasonable when your current vehicle requires frequent repairs, its market value drops significantly, and annual maintenance or fuel costs continue to rise. If repair bills exceed the car’s value growth or reliability is declining, it’s time to consider a newer model.
2. Is an electric vehicle cheaper to maintain than a petrol or diesel car?
Yes. Electric vehicles typically have lower maintenance costs because they have fewer moving parts, no oil changes, and fewer components that wear out. Electricity costs can also be cheaper than fuel, especially when charging at home using night rates or solar power.
3. How do I know if an EV fits my lifestyle?
An EV is a great choice if your daily driving distance is moderate, you have access to home or workplace charging, and you want to lower long-term operating costs. If you frequently drive long distances, you’ll need to ensure your routes have reliable fast-charging options.
4. Are hybrid cars a good alternative before switching to a full EV?
Yes. Hybrids offer improved fuel efficiency, lower emissions, and reduced operating costs compared to older petrol or diesel cars. For drivers not fully ready for an EV, hybrids provide a practical middle ground.
5. Do new cars really offer better safety?
Absolutely. Newer vehicles include advanced safety technologies such as lane-keeping assist, automatic emergency braking, improved airbag systems, and better crash-test ratings. These features significantly reduce risk compared to older car models.
6. How much does my car depreciate, and when is it no longer worth repairing?
Most cars lose around 30–40% of their value within the first 5–7 years. If your vehicle’s repair costs repeatedly exceed 10–15% of its market value, or major components (engine, transmission) fail, it is usually no longer economically worthwhile to keep repairing it.
7. Is charging infrastructure good enough for daily EV use?
Yes. Charging networks in many regions — including Lithuania — are expanding rapidly. Home charging remains the most convenient option, while public fast chargers allow easy city and highway travel.
8. What should I consider before choosing a new car vs. an EV?
Think about your budget, driving habits, charging availability, long-term maintenance costs, and environmental impact. New cars offer reliability and technology, while EVs provide lower running costs and long-term savings.
