Last post on Aug 12, 2009 at 3:34 PM
You are in the Hyundai Azera
What is this discussion about?
Hyundai Azera, Toyota Avalon, Ford Five Hundred, Chevrolet Impala, Ford Taurus, Car Comparisons, Sedan
#504 of 863 Re: Hyundai Azera vs Toyota Avalon vs Ford 500 vs Chevrolet Impala [snakeweasel]
Nov 07, 2006 (7:02 am)
I've had a couple of cars that received black circles in CR for reliability (1991 Ford Escort and 1999 Mercury Cougar) and I put a lot of miles on both of them (180K on Escort and 125K on Cougar). Since I put a lot of highway miles on the cars, they were "easy" miles, and the Escort was trouble-free until about 110K miles when I had to replace an alternater and water pump, and the Cougar gave me more problems (alternator at 70k miles, 110k miles and 120k miles, AC compressor at 115k miles), but in either case an extended warranty would have been a waste of $$ since the repairs (except for one alternator replacement) all occured at over 100k miles.
I would say that for those who drive a lot of highway miles not to bother with an extended warranty (unless you're really suspicious about the reliability) because of the improved quality of cars. I actually did buy an extended warranty for my Ford Freestyle because I'm suspicious of the new CVT transmission, plus this car gets a lot of suburb driving versus all highway. I'm buying a Honda Fit to replace my Cougar and I'm definitely not bothering with an extended warranty.
On the question of getting rid of cars once they reach 100K miles. That's fine, but in the long run more expensive. For example you buy a car for $25K and after 4 years and 100k miles it's paid off. If you trade it in and buy a new car, you're lucky to get $5K for the car because of the mileage, so now you're financing another $20K for 4 years. So in reality you're paying $5000 per year every year by trading in your 4yr old 100k mile car. Even if you put in $1000 per year in repairs, you're still better off than making your constant $5000/year in car payments. Especially with Hondas and Toyotas. Their reliability is really good and you could keep the car 10 years and $200k miles and only have to put in a few thousand over the lifetime on the car in repairs, which sure beats $5000/year in constant car payments.
Extended warranties are really just another way for a company to make money. You buy a TV, cellphone, toaster, new home, or whatever, and there will be the offer of an extended warranty to play on your fears of the unexpected huge repair cost, but like the previous poster indicated, the fact that companies are making huge profits on extended warranties mean that they don't pay out nearly as much as they bring in.
#505 of 863 Re: Hyundai Azera vs Toyota Avalon vs Ford 500 vs Chevrolet Impala [bobw3]
Nov 07, 2006 (7:25 am)
I've had a couple of cars that received ....
First off I don't trust CR any further than I can throw a bull elephant. That being said in all the cars I have had (including those that had bad reliability ratings from CR) non of them would have used an extended warranty. And I have driven some of those cars rather hard.
On the question of getting rid of cars once they reach 100K miles. That's fine, but in the long run more expensive. For example you buy a car for $25K and after 4 years and 100k miles it's paid off. If you trade it in and buy a new car, you're lucky to get $5K for the car because of the mileage, so now you're financing another $20K for 4 years.
They typical driver will take 80 months ( six and two thirds years) to get to the 100K mark. This means that they can save up those monthly payments for an additional downpayment. Say you buy that $25K car with a 10% downpayment and pay off the loan in 5 years saving the payment for the next 20 months. When it comes time to trade in you have close to $10K saved and the $5K as a trade in. Now suppose the new car is $32.5K ($25K adjusted at an inflation rate of 4% per year) you can now buy the car at the same payments but at a loan term of one year less.
But of course keeping the car longer makes even better financial sense.
#506 of 863 Re: Hyundai Azera vs Toyota Avalon vs Ford 500 vs Chevrolet Impala [snakeweasel]
Nov 07, 2006 (7:40 am)
I was trying to be conservative, but in the long run, it's always cheaper to keep the used car then keep buying new, but at some point (especially if you have a real dog), all the trips to the dealer and the uncertainity of when and where the next breakdown will occur will get people to buy a new car sooner. Or when needs change and/or there are improvements in safety. Even if I had a 15 year old car running great, I doubt if it had all of the new saftey features of a modern car, so at some point there are reasons other than cost for getting a new car.
#507 of 863 Re: Hyundai Azera vs Toyota Avalon vs Ford 500 vs Chevrolet Impala [bobw3]
Nov 07, 2006 (11:22 am)
just had a conversation like this with my now gainfully employed son - his current ride a 98 Camry, paid for of course. After 150k beginning to look like it might start needing some bigger repairs, and scared of the possible size of the bills, he wants to 'solve' the problem with a $30k new car. Told him to put $700.00/mo. in his spreadsheet (payment+insurance difference), and then figure that he needs to budget $200 of that keeping it running. That was about a year ago, he has actually spent $800.00 on repairs and he went out a bought a house, instead!
#508 of 863 Re: Hyundai Azera vs Toyota Avalon vs Ford 500 vs Chevrolet Impala [captain
Nov 07, 2006 (11:51 am)
Congratulations! You got your son on the right path to living a financially secured life. Tell him to run that Camry into the ground. yes he will have some minor repairs at that mileage but it still beats a new car payment.
#509 of 863 Re: Hyundai Azera vs Toyota Avalon vs Ford 500 vs Chevrolet Impala [djm2]
Nov 07, 2006 (1:01 pm)
djm2 wrote: "Who would keep a vehicle for 10 years or 200K? After four years, my vehicles have 100,000 miles on them, and they are history! Reason, ---- I can only get a 100,000 mile extended factory warranty on the vehicle. I would never own a vehicle without an extended warranty. These new "high tech" vehicles are just TOO EXPENSIVE to repair!"
I have two Classic 900 SAABs, one is 22 years old and the other 20 years old. Both have MAJOR miles on them, and I perform all maintenance. The bodies and mechanicals are in excellent condition (no major engine or transmission work as yet) - why not drive them? I'd rather put car payments or lease payments into a bank, or investment, accounts.
#510 of 863 Re: Hyundai Azera vs Toyota Avalon vs Ford 500 vs Chevrolet Impala [w9cw]
Nov 08, 2006 (2:34 pm)
I have a different philosophy of life! I would rather have a "new vehicle" every three or four years, and enjoy the "creature comforts" of life. Too many of my friends are already dead! Enjoy your money, because you can't take it with you. If you save it, the "nursing home will get it", and the owners of the "home" will buy themselves a new vehicle. ---- Best regards. --------- Dwayne
#511 of 863 Re: Hyundai Azera vs Toyota Avalon vs Ford 500 vs Chevrolet Impala [snakeweasel]
Nov 08, 2006 (2:41 pm)
Why should I sell it before the 100,000 mile mark? Honda is picking up all the major repairs. I am riding on Honda's Dime! This is Great! All I do, is have the vehicle serviced every 3,000 miles, and the rest is Honda's responsibility. If a major component goes between 83,000 and 100,000 miles it is Honda's problem. I am ahead of the "financial game! I am a winner, in the game of extended warranties! --- Best regards. ---- Dwayne
#512 of 863 Re: Hyundai Azera vs Toyota Avalon vs Ford 500 vs Chevrolet Impala [djm2]
Nov 08, 2006 (5:38 pm)
Honda is picking up all the major repairs. I am riding on Honda's Dime!
Really? Does Honda pay you for the time you spend taking your car in and picking it up or your time waiting for your car (if you wait for it)? Does Honda pay for the inconvenience of having to take your car in? I don't think so.
There is a greater cost to getting a car fixed than just paying for the repairs.
If a major component goes between 83,000 and 100,000 miles it is Honda's problem.
It is also your problem as you have to deal with a car that at best is working poorly and at worst leaves you stranded. You also have to deal with getting your car to the dealership, not having your car and picking it up. Is that Hondas problem? No thats yours.
I tell you what, you tell me how much its Hondas problem and not yours if you are in the middle of the country 5 miles from the nearest town at 2 AM in the middle of winter when its 10 degrees out.
I am a winner, in the game of extended warranties!
If you want to believe that go right ahead. I rather have a car that doesn't break down.
#513 of 863 Re: Hyundai Azera vs Toyota Avalon vs Ford 500 vs Chevrolet Impala [snakeweasel]
Nov 09, 2006 (5:10 am)
If you have owned cars that have never had a componant failure in 10 years or 100,000 miles, you are probably the first one. Congratulations!
A/C unit replacement runs in average $2500.
Power door locks or window activators $300-$400.
The story goes on!