We've asked this question every year for the last few years, but repairs always beat out monthly payment.
My baby is a 2000 Honda Civic. It's got 165K miles on it, and didn't need a major repair until 2010. We did the regular recommended maintenance (ouch, some of those are more expensive than your average repair!), and the only issues we had until recently was a window crank and when we were having our belts replaced were told our manifold was cracked (it really didn't cause any probs so we left it). Our first big repair was done in 2010 as a lump: a leaking oil gasket and a cracked radiator tank, plus we went ahead and did the manifold. Since then, the major repairs have really been for the A/C, but middle of Texas, it gets a lot of abuse: replaced leaking expansion valves/o-rings, the compressor, fan and the blower motor. It's come to about $3000. Now that's not a lot less than I could sell the car for. But over two years the repair was done, that was about a $125/mos. WAY less than a car payment. And we still can sell the car.
In fact, every time we take her in the shop guys tell me what a great car that model is. That this was the last year model of Civics that you could really do a lot of home repairs on / modify, so they're in high demand. They always tell me how easy it will be to sell, and one even told me to call him if I ever plan to sell it.
That being said, she may be leaving the nest sooner than later. We're trying to have our first child and this car doesn't have the safety features of today's cars (no side airbags, no ABS). Plus we're just tired of our cars not being large enough to carry even moderately sized things. She's a peppy little thing, but it's stuffy/hot in the summer (always been that way), the road noise is VERY loud, and it's cramped. And darn it, I've
earned power windows/locks!

If it lasts, we'll probably hold on to it until just before a little one arrives. We just paid off DH's Accord, so we're instead making monthly payments to our savings account for a downpayment. Mama wants a CRV!
