Ask the Car People.SM


Justifying Repair Expenditures Exceeding Market Value

21 messages,  Last post on Feb 23, 2010 at 8:03 PM

You are in the Classic Cars Forum.

What is this discussion about? Classic Cars

Messages Page 3 of 3

#12 of 21 Re: When considering repair or not [michaell] by Mr_Shiftright HOST

Feb 22, 2010 (3:58 pm)

Replying to: michaell (Feb 22, 2010 1:03 pm)
I think $6K is justified on an otherwise sound '70 C-10. These trucks have some value at least and the wise man knows that investing in cosmetics always brings more value than investing in mechanicals.
 
You can resale a good looking vehicle that's all worn out underneath much easier than one with a rebuilt drivetrain and a rusted, banged up body.

#13 of 21 Re: When considering repair or not [michaell] by hpmctorque

Feb 23, 2010 (5:52 am)

Replying to: michaell (Feb 22, 2010 1:03 pm)
The "3000 miles a year" is an important factor in justifying whether to spend more on repairs than the market value of a vehicle. With depreciation on a new or late model used vehicle being such a significant component of the cost of ownership, amortizing the higher cost to repair an older may compare favorably with the depreciation on a newer vehicle. The probability of this being the case is higher if the yearly miles driven on both vehicles (old and new) is low. If you drive a lot of miles, then the higher repair costs on an older vehicle could exceed the depreciation on a newer one over time.
 
What I'm saying is that annual mileage matters.

#14 of 21 Re: When considering repair or not [hpmctorque] by Mr_Shiftright HOST

Feb 23, 2010 (6:57 am)

Replying to: hpmctorque (Feb 23, 2010 5:52 am)
true enough on paper but I'm wondering if we have to grant the older vehicles something more than utilitarian status. Some people get their money's worth just looking at a nice old rig sitting in the driveway, and bragging about it. It's hard to brag about your Taurus.

#15 of 21 Re: When considering repair or not [Mr_Shiftright] by michaell

Feb 23, 2010 (7:23 am)

Replying to: Mr_Shiftright (Feb 23, 2010 6:57 am)
I had a chance to drive the C-10 about a month ago on a visit to see the folks.
 
Dad had the brakes redone - I don't know exactly what he did, but they have become quite 'grabby'. I mean, like 1" of pedal travel will throw you against the steering wheel. Very hard to modulate. I drove it around the block, then parked it.
 
Spent the rest of the week driving their '03 Hyundai Sonata.
 
Here's a picture that I took not long after the restoration was done:
 

#16 of 21 Re: When considering repair or not [Mr_Shiftright] by hpmctorque

Feb 23, 2010 (9:14 am)

Replying to: Mr_Shiftright (Feb 23, 2010 6:57 am)
I would agree that you have to like the old vehicle, and assign some value to the strict cost per mile comparison between old and new vehicles. Similarly, the peace of mind of a new car warranty has value. There's no question that there's a subjective component to the fix it versus trade it evaluation.

#17 of 21 Re: When considering repair or not [michaell] by hpmctorque

Feb 23, 2010 (9:15 am)

Replying to: michaell (Feb 23, 2010 7:23 am)
Nice truck! I can see why your dad wanted to keep it.

#18 of 21 Re: When considering repair or not [hpmctorque] by michaell

Feb 23, 2010 (9:58 am)

Replying to: hpmctorque (Feb 23, 2010 9:15 am)
Nice truck! I can see why your dad wanted to keep it.
 
When he bought it, mom told him it would be the last truck he'd ever get, so I'm not surprised that he's kept it all these years.
 
I don't think it's ever been more than 250 miles from home (this is in Southern California)
 
If he were to sell it and get something else, I don't think anyone in town would recognize him.

#19 of 21 Re: When considering repair or not [michaell] by andre1969

Feb 23, 2010 (10:52 am)

Replying to: michaell (Feb 23, 2010 9:58 am)
If he were to sell it and get something else, I don't think anyone in town would recognize him.
 
I've gone through something similar. My Granddad died way back in 1990, but I've still run across one or two people who recognize my '85 Silverado as his truck!
 
As for the grabby brakes, I had to have the rear brakes on the '85 done about a month ago, and they were incredibly grabby until they "broke in", I guess. I've seen that happen before on some vehicles.

#20 of 21 Something I learned a long time ago in HS by watkinst

Feb 23, 2010 (11:46 am)

If you like to save money and like to have nice cars - do your research - I'm talking major research dig up every little bit of info on the car you can. Everything from paint quality - engine history - transmission history etc. Make sure there are no well known major failures with the model you want to own.
 
Buy a good one probably from a private owner not a rental return sold by a dealer after buying it cheap at the auction lot.
 
Then read up on it so you know when the shocks start going bad - how long brake pads generally last - how long the rotors generally run. And keep the car for a very long time 10+ years. If you don't want to do the maintenance your self at least know enough to BS with the service guy- ask them what price they are selling the new parts to you for. Almost instantly they will knock off 15-20% on the parts costs just so that when you compare parts prices they fall in the average price range vs your discovery they are ripping you off with high priced parts.
 
If the car is in great shape - is a quality car with a good reputation of being durable and long lasting - yes dropping a few thousand in it to repair original parts that have had a long life is probably worth it. Much cheaper than buying a similar car new.
 
Once the car has reached the point where its just flat worn out and not dependable enough for your needs - replace it with another well researched - used - owner sold car. You'll save thousands and thousands of dollars over your life time. Put that money into a nice house - great trips a retirement fund. Your friends who crack jokes about your old cars won't be cracking jokes when your retired and they are still working. Or when you buy that really nice house and they are still struggling with owning a condo etc.
 
Cars are the largest expense and worst place to put your money.
 
My wife and I have
2001 Jetta 1.8T 5spd 55,000 (hers)
2001 Legacy GT 5spd 160,000 (mine)
1993 Landcruiser bought from original owner dirt cheap at 104,000. We put about $3000 into it over 6yrs replacing original worn out bits - its been flawless and is now at 140,000.
 
The only reason I'm researching newer vehicles - the Subaru is tired and the old LC gets horrid milege. I'd like to replace both with a fuel efficient large SUV. My only choice appears to be the MB GL CDI. So I found a mechanic locally I've been talking to him about common repairs and service costs. Checking out the model years for any common major product issues and looking at the dealer buyback values for lease returns.
 
So far it looks like an 09 coming off lease in late 2010 with 25-30,000 miles on it could be had for around $38-40,000. 08's still have some mechanical issues left over from the 07 disaster of a year. The 09's are proving to be much better regarding properly working systems and no major engine or running gear issues.
 
Porsche - I have a few co-workers with them. They all had issues till one found a new mechanic. He told them to do track days at least once a month. This was a few years ago. Since then outside of replacing tires once a year they have had very few issues. Turns out doing track days gets the old juices really flowing in the Porsche and helps reduce the number of issues that crop up with the daily stop and go grind to work.

#21 of 21 Re: Something I learned a long time ago in HS [watkinst] by euphonium

Feb 23, 2010 (8:03 pm)

Replying to: watkinst (Feb 23, 2010 11:46 am)
Your friends who crack jokes about your old cars won't be cracking jokes when your retired and they are still working. Or when you buy that really nice house and they are still struggling with owning a condo etc.
 
The above is very very true. We're retired & still driving our old cars, 94 & 95 garaged in a really nice house, on the hill.

Messages Page 3 of 3

To POST a message, please Sign In.

Advertisement

Browse by Category

Browse by Vehicle
   View All Vehicles

Browse by Board
Browse by Topic
View All Topics

Edmunds Community

Advertisement