The Debt-Free Car Project Chapter 6: Midyear Check-In

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The Debt-Free Car Project Chapter 6: Midyear Check-In

Our debt-free car had been over budget for a few months, but time and good preventive maintenance helped get it back into the black.

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bassrockerx

your maintenance plan of setting aside $$ each month weather you use it or not makes a lot of sense. however, that is almost a whole paycheck for me and there is no way i could afford a car that needed nearly 400 dollars every month sunk into it. especially considering most buyers of these cars will be financing a car for 4 grand. so you add a car payment to this and you are easilly spending 1/2 your income on your lexus clunker.
i do agree with one point you made is to expect to pay about $1000 dollars when you purchase a new car because at the minimum the car will need tires and/or brakes plus a waterpump or whatever the person that sold you the car neglected to tell you.

racerits

I love the articles and the concept. I recently made the decision to purchase a high mileage car when my newer (2000) car was fully depreciated. I purchased an 86 535i with 215,000 miles and haven't looked back. I drive the car everyday and have never had a no start. I am currently ahead of the payment curve and love not having to pay interest on a car.

My experience is very positive and recommend this to anyone who needs to buy a car on the cheap and for any car buff who would like to sample a fine older car. A nice positive is that I can sell the car for what I paid for it any time.

There are some risks that must be managed. Know thy powertrain is rule number 1. You can never completely eliminate the possibility of catastrophic failure. Due diligence and a little luck will help to minimize the risk. Wikipedia helped immensely by providing the engine nomenclature to complete further research. There are plenty of engines, like the M30B34 in my car, that are dead solid reliable. There are also plenty of engines and transmissions from reputable manufactures that took a bit of time to get right. Do your homework and you will find plenty of reliable powertrains built by every manufacturer. Some will surprise you...for example I was not expecting the high reliability ratings of the Dodge Caravan 3.8. I definitely didn't expect to discover a Subaru engine that eats head gaskets.

lhutch

These expenses are pretty much in line with what I've experienced with my 1995 BMW 525i, averaging ~$250-$300 a year. With only 160,000 miles, it was a no-brainer to spend $2500 a year keeping the car going - it drives great, comfortable with good performance.

However, now that I'm approaching 250,000 miles, the calculus gets harder - beginning to have to repeat the maintenance items that were done 100,000 miles ago, but now the paint is starting to go, the leather crack, and the oil consumption has increased.

And of course, the risk of being stranded is far more than is was 100k miles ago as well.

cruzeowner1

I'm sorry, but I'm with Omnius on this. Example: my own 2012 Chevy Cruze. I financed it 100% for 5 years and my monthly payment is $366. In addition, my fuel economy is way better, I have 10,000 mi oil change intervals, no fears of breaking down, and a warranty incase I do. Before I bought my new car, I used Edmunds TCO as well as insurance quotes from my insurance company and new cars easily cost less when you factor in better fuel economy, better insurance rates, and reduced maintenance and repair bills.

laesquire

I would wager that anyone buying a car for under $4k likely doesn't have $400/month for repairs - they are (unrealistically) counting on more like $0/month.

rosskarlos

Truly said there is no direct repair for cars . They have their own capacity and durability to have repair and maintenance. Many people are holding on their old cars and not relying upon buying a new car.

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