When is it time to get rid of an old car?
Yes, when repairs cost more than the car is worth, but otherwise.... ?
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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.
208,000 miles
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.
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.
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.
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.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
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?
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?
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.
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).
While i think most cars would have had it by then on old Volvos as long as the body isn't starting to fall apart or something they can practically go forever as long as you fix the mechanical things as they creep up.
My brother had an old Volvo 240 wagon that he kept forever. After many years one of the doors wouldn't open from the outside. Then it happened to another door. His theory was none of these things ever died; it was just that after a while you couldn't get into them anymore.
Even then, I wouldn't care. I have a 1995 Accord as a second, kick-around car. It has 244,000+ miles and it looks like a 14 year old car (starting to have more and more cosmetic defects). There are high school students who have nicer cars than that. I couldn't care less. I love that thing. Aside from routine maintenance, I have never had any trouble with it. That thing is a tank.
As long as it's economically feasable, I say keep it.
That is actually a sign that the 240 is going into is Chrysalis stage. You don't want to be trapped in one that does that as it typically lasts for a year or more. :P
Hah! That gave me a good laugh at work. Thanks.
Few cars can be more troublesome or expensive to fix than a Volvo. Time is not on your side. I would dump it before something expensive happens.
You can get 1000.00 now, or nothing later when something breaks. One big repair will exceed the value of the car.
These aren't the tough 240 series that Volvo built it's reputation on.
Its got 315,000 on the clock, w/ original tranny and engine, in fact I've done very little to it in the last 215k.
The car needs a timing belt and oil change, windshield is cracked, sun visors broken, paint is peeling in places and the drivers window does not open. It would make a great Island car.
I finally decided I got my $3,800 worth out of it (thats what I paid back in Y2K)
I hope the 07 Sienna I picked up is at least half the car as the '92 Subaru.
That averages out to about 2 miles per hour!
tidester, host
SUVs and Smart Shopper
I guess It makes sense, I drove it about 65 miles a day for work (including commute) 5 days a week. Its pretty amazing how little $ I had to put into it.
Did you follow the recommended maintenance on your suburu or after a certain point just let it go? The recommended maintenace on my sienna at 180k will probably be $1,500 or so.
Right now new 2010 Siennas are pretty much gone, there's very few left so realistically you'd be looking at a 2011 in the spring, probably at sticker or darn close to it based on the last couple of times Honda or Toyota brought out a new van.
If another 50k miles of use out of your current van will cost you $2k in maintenance, then... that's a lot less than a fraction of the depreciation on a new van.
On the other hand, you'll be getting to the point where one major failure will "total" your van and you won't have the latest and greatest.
You must mean 2009 Siennas are pretty much gone. As for gettng sticker on new model Sienna or Ody's, that seems doubtful as minivan sales have plummeted while crossovers have taken their place. Personally I would much rather prefer a minivan over a cramped crossover.
2009 Siennas have been gone for months.
And I know of a couple of Sienna models that, if you can find one right now, sell for very close to MSRP.
Sienna prices and availability seem to vary significantly by region. There are deals out there if you are patient and willing to pay shipping. My 07 is out of a So. Calif dealership, Seattle prices are much higher.