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#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?
#11 of 34 Re: Here's the scenario... [benjaminh]
Dec 08, 2009 (7:53 am)
Well, I used to have a 91 BMW 325i. I loved that car! Worked well for about 1yr or so. I think we bought it for 2300 or so. But, it stated running more rough and needing more repairs done. It had 215,000 miles when I finally traded it in. This was when I traded it in for a 2006 Accord SE, I leased the new car.
At least with a lease payment, I don't have to worry about the repairs seen on an old car. I was 22 when I leased it then, and I have now since traded and already have a newer lease. The payment is still cheaper than have all the repairs. Not to mention a reliable transportation. I plan to trade my lease again in the Spring. By then it will be my 3rd lease at the age of 25. It just makes more sense for me. Seems like I have been trading about every 2yrs. I could not imagine trying to haul my family around in a car that could possibly break down or have problems.
But, with that said, I could totally love to not have that car payment every month. But, I think it is just a given. Sure, I could get the car paid down and eventually paid off. Then have nothing, but by then, you start having the repairs. At some point, doing a loan and paying it off would be nice.
It works for me, for now. I still wonder what happened to my old BMW?
#12 of 34 Re: Here's the scenario... [benjaminh]
Dec 08, 2009 (9:34 am)
Correct. I'm pretty much trying to time it so that I get $1k for the old wagon to pay for the insurance for the coming year on the Camry.
I thought it was creative thinking to put the Camry in storage. That way - not paying for additional insurance, not putting miles on an already low-mile car while driving the old wagon into the ground. I figure I'll get another few years (3-5) of driving the 2003 Camry (hasn't been on the road for a year) before having to entertain a new car and that new car payment.
#13 of 34 Suggestion
Dec 08, 2009 (9:44 am)
Start making car payments now but make them to a savings account. Use the account for repairs as needed or use it for a down payment on something newer when the time comes & you're ready to get rid of it. That way even if you suffer a catastrophic breakdown - I mean the car, not you personally - you can just sell it for scrap and use the "payments" as a down payment immediately. The more months you go w/no major repairs, the larger the down payment you'll have when you eventually buy.
My brother did this. After paying off his first car back in the '70's he kept making payments to savings. He kept the car long enough that he bought his next car with cash. Maintaining that routine he never pays any finance charges. (He's still making payments. Just to himself).
Also, by making the payments to the savings account you are already used to the payment and have it in your budget. You don't have to significantly alter your spending habits to accommodate the actual payment when the time comes.
Other benefits: If your down payment is large enough you won't need to consider gap insurance. Your general cash position is improved so your credit score will probably be better. You always have an emergency fund to tap for non-automotive uses like sudden medical bills. You practice good finance habits. If you think you'll go another year with no problems or need for the money you can pull it out & put it in a retirement account. The benefits go on and on.
When I say 'savings', BTW, I mean anything account that you're not going to access on a daily basis. Passbook savings doesn't pay squat for interest anymore, but you could be using a stock account at etrade or ameritrade or the like. Or some moneymarket thing. Or even buy 6 month CDs or bonds or something (although that would mean less liquidity).
#14 of 34 Re: Here's the scenario... [Sylvia]
Dec 08, 2009 (10:29 am)
Battery and brake job normal wear and tear. Noises... you're getting your brakes done so should be okay there. Has the car been reliable? If so then case closed.