In California due to code compliance and zoning issues I woudl not tear the garage down because as long as it's standing you can use the same foundation and essentially just repair or remodel it. IF YOU tear it down then when you decide to rebuild it that will be to new building codes and even teh old foundation may not make it due to age, size etc and suddenly you have a much larger expense than leaving the old structure in place.
If i will need to rebuild, i would consider converting it to a living space/ADU. I suspect i will have to meet all new building code on that to satisfy inspections.