The phrase "to replace the car" means to get rid of the old car and get a new one instead.
Sentences with «to replace the car»
Savings from replacing a car with a bike are even more impressive. (earth-policy.org)
Make sure you select a car insurance policy that will pay for the cost of replacing your car if it is stolen. (trustedchoice.com)
In all of the above, It is possible that your car so so damaged that the cost of repairing it is more than the cost of replacing the car. (myfinancekits.com)