Buy new or fix the old one?

[deathroll]

My financially strapped post-graduate college daughter/son-in-law own a 2005 Chevy Cobalt, 103,000 miles, that needs a new fuse box ($500) and some (?) transmission work ($500+).

So, how exactly do you determine when it's time to give up on the old paid-off vehicle? Should they dump another $1,000+ dollars into a low-end, getting old, American built car? They HATE car payments. How do you know when it's time?

Thanks folks.

[JimBobTheClown]

Run it into the ground

[junebuggator]

The average car payment for someone with good credit is 400-500 a month. So in my estimation you are still way ahead by repairing your paid for vehicle. Why the American culture has turned from this way of thinking is beyond me.

[g8rphan19]

why does it matter that its american built? Every car with over 100,000 miles on it is going to have something go wrong with it. Where the American culture has turned away from american built cars is beyond me...

[Jaggator]

If the paid off vehicle has been maintained well since they've owned it, it's better to pay for the repairs and keep it since you say they are financially strapped. Let's assume repairs run about $1,000...that equates to about 3 car payments.

My Dad use to say a car rides better when you know they're paid off.

[Jaggator]

Deathroll, this may further help you and them...

Good article...

http://www.edmunds.com/car-care/fix-up-or-trade-up.html


"If the cost of repairs is greater than either the value of the vehicle (check its True Market Value (TMV®) here) or one year's worth of monthly payments, it's time to buy another vehicle."

[gtr2x]

My motto is if I have to worry about the car starting in the morning or dieing on the freeway in rush hour, its time for a change......or at least a AAA membership.

[gatorjjh]

If the paid off vehicle has been maintained well since they've owned it, it's better to pay for the repairs and keep it since you say they are financially strapped. Let's assume repairs run about $1,000...that equates to about 3 car payments.

My Dad use to say a car rides better when you know they're paid off.

your Dad is/was a wise man :)

[brolowe]

Dad had lived and experienced this so he knew what he was talking about. I've plenty of money for whatever I want but I always get 160K out of everything I own. Its easy to do and you can do the simple math to prove it. Figure a $400 payment and work with it. It takes a LOT of repairs to come up wiht that money.

[NorthCaptivaGator]

My motto is if I have to worry about the car starting in the morning or dieing on the freeway in rush hour, its time for a change......or at least a AAA membership.

Agreed, an unreliable car can cost you a lot more than repairs,

[gatorbadboy]

If it does not need anything major, repair it. The longer you can reliably run a paid off one, the more money you save yourself. My dad once did the math. If you pay off a car, but continue to take the payment amount out of your budget for 4 years, you can likely walk in and pay cash for the next car you buy. The interest savings means you could own a brand new car every 5 years and pay no interest.

[vertigo0923]

My financially strapped post-graduate college daughter/son-in-law own a 2005 Chevy Cobalt, 103,000 miles, that needs a new fuse box ($500) and some (?) transmission work ($500+).

So, how exactly do you determine when it's time to give up on the old paid-off vehicle? Should they dump another $1,000+ dollars into a low-end, getting old, American built car? They HATE car payments. How do you know when it's time?

Thanks folks.

we have always been members of the 'keep it ten years' (at least) club. lol.

[gatorknights]

Two words: Honda Civic.

Between the 2 I've owned over the past 20 years, I've piled on almost 400,000 miles, and the only repair costs were tires and maybe 2 or 3 oil changes. Best car ever.

Plus, they are real babe magnets.

[FrankGator627]

Two words: Honda Civic.

Between the 2 I've owned over the past 20 years, I've piled on almost 400,000 miles, and the only repair costs were tires and maybe 2 or 3 oil changes. Best car ever.

Plus, they are real babe magnets.

I hope you were doing your own oil changes or you meant 20-30 oil changes...

[tegator80]

I always drive my cars into the ground. It is the most cost efficient thing to do. And yes, I have a AAA membership. But the thing that stood out in your post was 103k miles and Chevrolet. Unless the car has been driving well and is just now showing signs of wear and tear, I am afraid that the end is coming sooner than later.

[MeyerIsBack]

Two words: Honda Civic.

Between the 2 I've owned over the past 20 years, I've piled on almost 400,000 miles, and the only repair costs were tires and maybe 2 or 3 oil changes. Best car ever.

Plus, they are real babe magnets.

400k miles on 2 or 3 oil changes is mighty impressive.

[Gator515151]

If there is one thing I have learned from watching the new style of reality shows on TV (Duck Dynasty, Sons of Guns, Rocket City Rednecks, Myth Busters, hell even Pawn Stars) it is that when a vehicle reaches the end of it's useful life it is time to BLOW IT UP!...My favorite is the acetylene/oxigen bomb, be careful a little goes a long way.

[AzCatFan]

Never easy to figure out when to repair an older car or trade it in. For me, it's reliability versus repair costs. If a beater needs $2,000 in repairs, that's equal to about 5 new car payments. If I think the repair will be the only major one needed for 12 months, to me, it's worth getting the car fix. If I simply don't trust the reliability of the older car and feel it will need more repairs sooner rather than later, then I believe you are only throwing good money after bad.

[grayg8rstevo]

Financial planning would dictate to you that monies be set aside every month for the replacement of the vehicle , just like a car payment After. few years, when nelliebelle is toast, the money to replace it will be there. At least most of it.
That is one school of thought.
The other one is that with the dollar devaluing because the government is printing and spending like crazy, massive inflation is inevitable . Soon. Get what you need, modestly , while the dollar buys something and interest rates are incredibly low. Buy what you must have NOW. Then prepare to ki$$ your a$$ goodbye.
Good naturally of course, lol.:yes:
If CHAPSTICK inflates in price like food and fuel, it will be $50 a tube. Buy that now also.:laugh:

[GatoRella]

Fix it..

If your post grad daughter is strapped why does she think she can afford a new car and all that interest? Fwiw I am 29 with a good job and her car is nicer than mine. People spend waaaaay to much money on cars they can't afford, see bankruptcy court.

Also Im guessing she needs help from you in some way ($$, or cosign) be careful. Much better to help with a repair than cosign on a new vehicle, but that's jmo.

[g8orbill]

Two words: Honda Civic.

Between the 2 I've owned over the past 20 years, I've piled on almost 400,000 miles, and the only repair costs were tires and maybe 2 or 3 oil changes. Best car ever.

Plus, they are real babe magnets.

what about us big sob's who cannot fit comfortably in a Civic

I love my Gator Blue F-150

[vertigo0923]

i didn't have a choice on 'fix' with my mustang. waaaaaaaaaaaah! deer lands on hood, that was it, plus that 166k miles i put on 'er.
am having fun with this eclipse. fabulous sound system. gotta love the butt warming seats up here, too. and it's another vroom vrooooom for me. (beep beep)

[northgagator]

i didn't have a choice on 'fix' with my mustang. waaaaaaaaaaaah! deer lands on hood, that was it, plus that 166k miles i put on 'er.
am having fun with this eclipse. fabulous sound system. gotta love the butt warming seats up here, too. and it's another vroom vrooooom for me. (beep beep)

Sorry for your lost on the Mustang. I knew that you loved that car.

[gatorknights]

what about us big sob's who cannot fit comfortably in a Civic

I love my Gator Blue F-150


LOL!!

Sometimes there are advantages to being a smaller guy. But I have big feet, and you know what they say about us guys with big feet...

:laugh:

[MeyerIsBack]

LOL!!

Sometimes there are advantages to being a smaller guy. But I have big feet, and you know what they say about us guys with big feet...

:laugh:

You need big shoes?

[OaktownGator]

If you need to buy, now is a good time. Interest rates are low and new car market is soft due to the economy.

Look for an entry level car with good reliability ratings. Should be able to get a new one under 15K. Payments less than 300 a month.

That payment cost should be considered against estimated ongoing cost of repairs, and delta in cost of fuel. If you get a car with significantly better gas mileage, and you drive much, that can be significant with today's gas prices... which will only get higher over time.

On the flip side, insurance cost is likely to go up with the new vehicle.

[G8trGr8t]

Based on reliability ratings for that car buy used. 3 - 5 years old direct from owner with less than 12k per year mileage is my target. Takes some time to find right deal but it is worth it. Look in parts of state with lots of snowbirds or lot of older folks that don't drive that much.

[jmoliver]

I drive daily a 2005 BMW 325i. I just turned 130,000 miles. It gets great gas mileage with medium grade fuel. I have been very lucky with the car. I change the oil and filters every 6,000 and have the mechanic check it out. I have averaged under $ 1,000 a year in repairs. I have recently changed some front end parts and the rear wheel bearings. I think it is getting to the point where I want to see how long it will last.

[gatorknights]

You need big shoes?


Let's just say Mrs. Gatorknights ain't complaining if you nome sane.

[deathroll]

LOL!!

I have big feet, and you know what they say about us guys with big feet...

:laugh:

Just an FYI, knights. I also have a pedicure thread running around here somewhere.

[g8orbill]

LOL!!

Sometimes there are advantages to being a smaller guy. But I have big feet, and you know what they say about us guys with big feet...

:laugh:

J-I wear a 15 EEE - so yes I know what they say

[deathroll]

OK, so they decided to keep it and get it repaired. Spent the $500 on the fuse box but now, straight from the service station, the speedometer doesn't work. Technician/repair man says he knows nothing about it and it's not his fault. Still haven't had the transmission fixed. Might just be time to pull the plug, in spite of just having dropped $500 into that fuse box.

[dawny]

We just sold our 1999 silverado Ls $2000, with 300,000 miles a work truck, still ran great, best truck on the road, bought another one 2004 4door for $4500 with 150,00 miles 5.3 liter, this truck was perfect except the miles but will run for over 350,000 miles,my Daughter has one also, dont like payments.

[mapagator]

My rule of thumb - drive it until the repair exceeds the value of the car.
I routinely drive my cars near or over 200K miles, and since I live in Atlanta that usually takes 8-10 years. And I agree with the Honda recommendation - oil changes every 3500 and regular maintenance keeps those cars running. But I have a 2004 Ford Explorer with 180K now that same formula has worked.

[tegator80]

OK, so they decided to keep it and get it repaired. Spent the $500 on the fuse box but now, straight from the service station, the speedometer doesn't work. Technician/repair man says he knows nothing about it and it's not his fault. Still haven't had the transmission fixed. Might just be time to pull the plug, in spite of just having dropped $500 into that fuse box.

Yeh, being a Chevy it is a hard call. I would probably still hold my nose and continue to repair, as long as finance is the driving force. One thing you need to remember if you get a used car: do your homework as there a a bunch of Sandy cars hitting the market that haven't shown the signs of salt water intrusion yet. You don't want to be surprised when the cars rust out and the electrical fails.

[OaktownGator]

Yeh, being a Chevy it is a hard call. I would probably still hold my nose and continue to repair, as long as finance is the driving force. One thing you need to remember if you get a used car: do your homework as there a a bunch of Sandy cars hitting the market that haven't shown the signs of salt water intrusion yet. You don't want to be surprised when the cars rust out and the electrical fails.
Used cars are also a bigger risk in a bad economy - people don't maintain their cars properly because they'd rather eat and pay the rent.

[brainstorm]

My 2002 Mazda Millenia broke down today - the timing belt - and I will be $600 poorer tomorrow. But, I have to consider the car is in good shape otherwise, is paid for, gets 24mpg and I can put cheap insurance on it.

A new car comes with 6-7 years of expensive payments and a full coverage insurance requirement. It is a huge drain on your net worth and cash flow.