You’re not counting labor costs, tracking down an issue with an older car can be seriously time consuming, and that time costs something like $75-100/hr.
For instance, my fun car had a persistent miss that made it basically undrivable. It took me something like 20-30 hours to find the issues and fix them. I have OBD2 scanners (the real deal, not the toys), all the tools needed, and the ability to read the service manuals and follow the dianostic proceedures.
Someone driving an old pile, isn’t likely to have the time, know how, or funds to fix the old car. So instead of spending $5k to fix the thing, they spend $300/mo on a new (or new to them) car.
Most states limit the max outlay required before they give someone a pass. In some cases, a vehicle requiring repair expenditures over $450 may get a waiver from the state exempting it from further repairs regardless of test outcome.
You can see a lot of details here. http://www.rff.org/Documents/RFF-DP-99-23-REV.pdf Also, repairs often increase fuel economy so not only do city's become far more livable again the net cost is fairly low.
For instance, my fun car had a persistent miss that made it basically undrivable. It took me something like 20-30 hours to find the issues and fix them. I have OBD2 scanners (the real deal, not the toys), all the tools needed, and the ability to read the service manuals and follow the dianostic proceedures.
Someone driving an old pile, isn’t likely to have the time, know how, or funds to fix the old car. So instead of spending $5k to fix the thing, they spend $300/mo on a new (or new to them) car.