Everyone comes to this point in their life: Is it time to get a new car?
Here are the reasons I'm thinking of doing so.
1. My 98 Ford Explorer Sport has some issues
- It needs 4 new tires (cost estimate is $600)
- It needs to have the window tint removed so it can pass MS inspection ($40)
- It seems to be idling a lot rougher than it used to be (??)
- It gets TERRIBLE gas mileage. I drive 4 miles to work and 4 miles home...total of 8 miles a day. I may drive an additional 4 miles during a day every now and then...so about maybe 70 miles a week for work. Then I may put an additional 80 miles or so a week on it. Total of 150 miles a week on average...and I fill up once a week...on a 16 gallon tank. If i'm doing the math right, that's a little over 10 miles per gallon...yuck!!
- Its losing value every week. It has 124,000 miles on it, and I can sell it for about $4000, or trade it in for about $3000 or less. I figure with the door locks, the tires, the engine idling problem, and a few other mechanical problems (struts and shocks, etc.) I'll be spending around $1500 for tune ups and repairs.
- It is a two door vehicle. My wife has told me whenever we have kids, she will NOT put the babies in it.
Thing is, we have both of our cars paid off, and we don't want a car payment, or if we have to have one, it can't be for very long...like maybe a year. Car payments are from the devil, just like student loan payments!!
Now, EVERYONE WEIGH IN!!! Let me know what I should do:
CHOICE A: Fix the car, drive it for another 50,000
CHOICE B: Sell or trade it in, get what I can for it, and get a new vehicle
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9 comments:
You gotta bite the bullet. Get a new car. In fact, go ahead and get a mini-van so you'll be prepared to join the wonderful world of parenthood!
Seriously, you're at that point I was at after Sunny and I got married. I loved my old Honda Accord, but it would've cost more than the vehicle was worth in order for me to fix it.
I agree with Jason. We were in the same boat with my Lumina -- it was a '93 with only 125,000 miles on it, and probably would have easily gone past 150K, but so many things other than the engine were starting to wear out, and it was only worth about $300, and the repairs to it would have cost more than that.
That should be your main thing to look at -- will the repairs that I have to make to get this in optimal selling or trade-in condition end up costing me money in the long run?
Also, if you are smart with what you buy, car payments are not necessarily a thing of the devil. Now, if you went out and got a Hummer or something ridiculous like that that is way more $$$$ than you need to spend, then yes they are. But, if you find something affordable that meets your needs and you can pay off quickly, then they are not, but that's just my opinion.
Keep it. Get new tires. Take off the tint yourself (remember to hold your breath). Put in new spark plugs and wires yourself and throw in some fuel system cleaner. Change the oil yourself with high-mileage oil every three months no matter how many miles you drive. AND . . .
Put the equivalent of a car payment (or more if possible) in the bank. Emigrant Direct has an FDIC insured account that's advertised at 4.5%. Save until you get pregnant or get stranded, whichever comes first. If you can't afford to do this, then you can't afford a car payment (natch).
Why should GMAC get the interest?! Save the money and take a briefcase of cash with you when you go to buy your next lightly used car. Bring 20% less cash than the guy is asking for, open the briefcase on the hood of his car and tell him he can even keep the case. Keep 5% of his asking price in your inside coat pocket; if he totally balks pull it out. Be ready to walk away.
this comment brought to you by Gordon Gekko
We've actually been saving a car payment in the bank each month...not quite what a real payment would be, but enough to see if this is something we can do. I hate car payments, and its amazing how much more you can do without them.
I think we've decided to either fix up the Explorer or get rid of it and buy a newer car that is slightly newer with fewer miles and gets better gas mileage...but i'm never going to own a new car...they lose like 10% of their value when they hand you the keys.
10% is a low number, in my opinion, and I used to work at a car dealership -- I would guess closer to 15 or even 20% for some models, maybe even higher. My wife and I have always said that we will never purchase a car that is newer than 2 years old, preferably 3. At that point, you can get a good purchase deal, and insurance rates seem to turn a corner around the 3-year mark as well and go down a bit more.
Also, and you probably know this, you're usually better off not getting the extended warranties they throw at you. They don't sound like a lot of money, but the one they offered us would have jacked our payments $40 higher -- Uh, I don't think so!
Wow...Greg Brooks seems to be on the right track. He's telling you pretty much the same thing I would have told you.
Rebecca and I are in a similar situation, except our 1994 Nissan Maxima has 193,000 miles on it. It needed two new tires, new spark plugs, a new rotor and distributor cap, an oil change, a feul filter change, and the exhaust gasket repaired. We decided to repair it. After hearing what they were going to charge for the spark plugs and distributor cap and labor, I decided to head to AutoZone. For $17, I got a book that basically tells me how to take apart and rebuild the car. I got spark plugs for $3 each (total of $18), and the new distributor cap and rotor for about $40. A total of $80, and they were going to charge $200 to do it. I fixed it on a Sunday afternoon, and you know I'm not the most mechanically inclined person on the planet. I've also learned to change my own oil (savings of $5 - $10 per oil change).
I guess my point is, if you can do some of the work yourself, you can save yourself some money (that you can put back for a newer vehicle), and you can dabble in a new trade. I've found it to be a good way to get my mind off of things. Well, there's my 2 (maybe 3) cents worth.
An addendum...in my short time in the auto mechanic field, the rough idling is probably caused by one of two things...the spark plugs need to be changed (and maybe the distributor) or the fuel filter needs to be changed.
One other thing to look at is the gas -- even when tuned up properly, what is your mileage? If you get 12 miles to the gallon in this vehicle, but can average 20 to 25 mpg in a different car, you could end up saving anywhere from $50 to $80 a month on gas easily. You just have to look at all of your costs involved -- not just the cost to repair now, but the cost to maintain (future break-downs and 'wear-outs'; routine maintenance), as well as your costs to operate (mainly gas). If it will be cheaper to continue to own and maintain this vehicle, then keep it and fix it up -- I'll even lend you a hand on it some weekend!
Fix the Explorer and put the car payment in the bank. In a couple of years you will be able to get something slightly used and your pocketbook will love you for it. When Lane Jr. comes along you are going to need money for other things, like diapers!
TR
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