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]

Originally Posted by 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.

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]

Originally Posted by 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.

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]

Originally Posted by 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.

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]

Originally Posted by 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.

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]

Originally Posted by 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.

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.
If CHAPSTICK inflates in price like food and fuel, it will be $50 a tube. Buy that now also.

[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.