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When repair stops being cheaper than replace

A simple framework for knowing when it's time to stop throwing money at old kit and finance the replacement instead.

20 April 2026·TMF Content Team

The rule of thumb most operators miss

If you're spending more than 50% of the replacement cost on repairs in a single year, the machine has already made the decision for you.

But the headline number hides the real cost: downtime.

The three numbers you need

  1. Annual repair spend (last 12 months, not including scheduled servicing)
  2. Days out of service (for unplanned repairs)
  3. Replacement cost financed (monthly repayment on new or near-new kit)

If (1 + 2-as-lost-revenue) > (3 × 12), you're losing money keeping the old machine on.

What most operators get wrong

They compare repair cost to purchase price, not to finance repayment.

A $180k excavator might cost $3,200/month financed. If your current machine is costing you $4,500/month in repairs and downtime, you're already paying for the new one — you're just not getting it.

When to call us

When the maths starts to shift. Don't wait for the next breakdown to force the decision. Contract-aligned finance takes 24-48 hours for approvals in the Fast segment ($30-100k) and up to a week for Scale ($350k+).

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