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#1 of 34 When is it time to get rid of an old car?
Dec 07, 2009 (1:18 pm)
Yes, when repairs cost more than the car is worth, but otherwise.... ?
#2 of 34 Re: When is it time to get rid of an old car? [Sylvia]
Dec 07, 2009 (1:39 pm)
I guess we first have to define what "old" means?
I've got a 7 year old car with 91K on the odometer. Yes, there are a few minor issues that could be addressed - some cosmetic, some mechanical, but none of them prevent the car from doing what I need it to do, nor that compromise the safety and reliability.
As much as I'd like to trade it in and get something newer, there isn't much reason for me to do so just yet.
Somewhere on these forums I saw a pretty good approach ... when the monthly cost of keeping the car on the road exceeds the payment on a new (or newer) vehicle, then it may be time to do so. Monthly outlay is the same, but you're paying for the reliability (and, if it's a new car, a warranty) versus the nickel and diming to death of the old car.
#3 of 34 Here's the scenario...
Dec 07, 2009 (1:45 pm)
18 yr old car (Volvo 940 SE wagon)
Just bought a new battery
Due for a brake job
Noises are starting here and there that should likely be looked into
The insurance is cheap, obviously no car payments (bought the car used in 1998) so it's been great for 11 years.
#4 of 34 When making car payments
Dec 07, 2009 (2:14 pm)
you are buying money to use to buy the car. Save now the payments that would be made in the future.
Balance the cost of buying the car and buying the money to pay for the car against what you are driving - knowing what repairs you have made and predicting future maintenence.
Applying loan interest to buying a depreciating asset is not a good business practice. It's a financial self inflicted wound.
You do NOT deserve the newer vehicle if you can't pay cash.
#5 of 34 Re: Here's the scenario... [Sylvia]
Dec 07, 2009 (2:21 pm)
I'm sure that there are others who are more qualified than I to speak to the mechanical issues - both known and unknown - but let me ask a few questions:
1) are you concerned that it might leave you stranded?
2) do you want to upgrade to something newer / nicer / more fuel efficient?
From what I've read on the forums here at Edmunds, 200K is a pretty good life for a modern automobile. Perhaps its time to retire the old gal - or hand it off to a family member in need - and move on.
#6 of 34 I'm looking at it this way...
Dec 07, 2009 (2:54 pm)
I have a newer car that I bought when we needed 3 cars in the house. We only need 2 at the moment so I put the 2003 Camry in the garage and have the insurance set for storage rather than driving to save $$. I figured that way I'm not spending insurance and reg on 3 cars when we only need two. I could drive the oldest car until it was (and is) about to give up.
What I'll likely do is try to sell it at just the right time for me - to get $1000 for it - that I can use to pay the insurance and reg for the coming year on the newer car.
What happens to the old girl after I sell her is someone else's issue.
I figure this isn't a bad strategy.
#8 of 34 Re: When is it time to get rid of an old car? [Sylvia]
Dec 07, 2009 (6:09 pm)
I would say the time to get rid of an old car is when the average monthly cost of repairs starts to approach the monthly payment of a new(er) car. I say approach because you should take into account the value of being inconvenienced during each time the vehicle needs repair.
#9 of 34 time to purchase old car.
Dec 07, 2009 (8:06 pm)
I would say that when you have low finance and you want to drive car, then this the time to purchase old car.
#10 of 34 Re: Here's the scenario... [Sylvia]
Dec 08, 2009 (4:14 am)
waaay past time to replace this puppy, imho. Brakes? Other strange noises? Time to let it go if you're not going to invest major money.
So, you put a Camry in storage to drive this? That's....unusual, but creative thinking, I guess.
So, you don't even need to buy a new car, right, just up your insurance on the Yota?