How do you know when to call it quits with a car?

[Clairitek]

DH and I currently own a newish car (a 2012 Mazda3) and a 9 year old Honda Civic. Our mechanic thinks that the Civic is in stellar shape for the mileage- 178k. We just spent $1k on new shocks and brake rotors/pads. I believe the next big routine replacement will be the timing belt in 15-20k miles (the original one was replaced at 95k miles) which will probably run $600-$750. It is in good shape cosmetically. I believe with some elbow grease I can make the interior look pretty nice.

Private sale it is worth $3100-$3300. Trade in it is worth $1500-$2300.

What we have been struggling with is when to just sell the darn thing and move on. Right now we have a small car loan on the Mazda and no other debt payments. On one hand we were thinking we would just run it into the ground. But where do you draw the line on that? After dumping $1k into it I feel like we are beginning to teeter on the edge of unreasonable investment in something that is only worth $3300 max.

So in our shoes, what would you do? Sell it while it's still worth something? Or save that monthly car payment and drive it until it needs a major repair and we would have to pay someone to dispose of it? We both feel that we could be convinced either way.

 

[MichelleCarmen]

Can you make larger pmts on your Mazda loan and get it paid off and then buy a new(er) car so you only have one loan?

I guess I'd call it quits when the amount you're putting into maintenance/repairs could be used toward a down payment on a newer car OR if it suddenly has a major repair.

I'm in the same boat as you...we have a very small car loan on DH's car and my car is very old and has even more miles than yours! I don't want two car loans but there are multiple reasons I'll have to get a new car before we pay off the other....it basically came down to the reasons to purchase a newer vehicle outweigh keeping the older.

 

[JewelFreak]

When you can't stand the thing anymore. I drive mine till then -- usually about 10 years per car. It may be in good shape but the repair bills start adding up -- like yours are -- then a point comes where I am so sick of trying to make a silk purse out of an aged car, I make the decision overnight. While it still has some re-sale value. My bourgeois soul requires that, does yours?

--- Laurie

 

[chrono]

It's time to change when the repair bills come close to the same amount as a new car payment.

 

[movie zombie]

my husband is driving a 1993 Honda Accord EX with 345K miles.
he bought it in 199 when it had a mere 60k on it.
yes, he has driven this and will continue to do so until it just goes belly up.
why?
because he uses it as his commute car.
we have kept it running because it is good on gas mileage and the body is ok [interior is not but then it is not my car and I don't ride in it].
our mechanic is surprised that we continue to repair it.
it is reliable and the engine has never given a problem.
repair is cheaper than buying a new car.

my Honda Accord EX is a 2005 which I bought in 2010 used from a private party. I now have 128K on it. I like this car enough to also keep it running.

my prior Honda Accord EX was a 1996 bought with 128K on it and it had 199k on it when I gifted it to my grandson.

Honda is pretty much the only car I would continue to repair despite blue book.
replacement cost is just always going to cost more than repair.

however, if you don't like the car and/or body style and/or are not happy with gas mileage you have your excuse!

I hate car payments with a passion and I will probably never buy a new car again.
while I appreciate Chrono's view point, it isn't the one month car payment that bothers me, it is the many months/years of car payments.

 

[chrono]

MZ,
Actually, we are in agreement. I did not mean that the maintenance bill equals to a single month's car payment but when the annual repair cost gets close to the price of a new(-er) car. I am the type to drive the car until it has almost zero trade-in value. Of course, not everyone share the same mindset or car values. The term "new" did not necessarily mean a brand new car but a replacement car for Claritek. The depreciation of a brand new car as soon as it leaves the seller's lot is quite depressing.

 

[kenny]

Perhaps one strategy is to keep the old Honda going till you can save up to pay cash for the next car.
Interest is money down the toilet.
Even if you get a zero interest loan that will mean you would not be able to negotiate lower on the sale price.

I really love the resale value of Hondas.

 

[JulieN]

9 yo Honda Civic? that thing is a baby!

It's not about putting 1K into it when it's "worth" 3K, because that's just the resale value, not the cost of the alternatives, which is a new (or newer used) car.

 

[dk168]

I am hopelessly sentimental when it comes to my car, as I could have bought a brand new one for the amount of money I had spent on her for the past 7 years.

However, I had mine from new in 2002, and she has been one of the few constants in my life for the past 11 years, and have decided to keep her for as long as I can.

I traded in my previous car for this one when it started to become unreliable, and did not miss the old car at all. It was love at first sight when I saw my new car on then dealer's forecourt beaming at me. She was and still is, unique in my eyes!

I do not intend to keep my next car for as long as my current car, and shall trade it in soon after the extended warranty runs out, which is usually 4-5 years, as I have learnt my lesson about cars, in that they will become more and more costly to upkeep and repair as they become older.

As for method of selling a car, my personal preference would be to trade it in to save the hassle of selling privately, however, that's just me.

Good luck with whatever you decide.

DK

 

[decodelighted]

You guys are my heros ... seriously! My 2005 RAV4 has just over 90K miles and I'm a little itchy even though I LOVE the car! It's taken some dings/scratches/rear-endings in the last couple of years and those bother me. But I'm too cheap to fix them since doing so seems outrageous vs. recoup'd resale benefits.

I would like to ideally drive this car into the ground. 175K would be amazing! But every once in a while I get seduced by things I don't have. Native navigation ... super comfy multi-adjustable seats. (Those are the main two LOL!)

Hope I can stick it out for the long haul. And save the (I feel) wasted $ on "upgrading" a perfectly good, sound, reliable, safe car that suits 99% of my needs - at least for a lot longer.

DH has a brand new, "fun" car that I can enjoy zipping around in. He, on the flip side, works like crazy -- makes most of the $ right now ... and was really, really, REALLY missing a "fun car" in his life after years of sacrifice. So we decided to do that for him even though it's not the thriftiest/most practical thing. It really increases his enjoyment of errands and has made him feel pampered a bit for all his hard work. So - I guess: mixed bag!

However if my car starts having repair bills that equate to the cost of ownership of a new car - I'd probably bite.

 

[NewEnglandLady]

Just mirroring what others have said in the thread. I would keep it and continue saving until you can pay cash for your next car. I honestly don't think 175K is that many miles...certainly not enough to warrant a monthly mechanic's bill that is equal to a car payment. Driving a car into the ground is usually the best way to get as much as you can out of the car...I'd basically just drive it until it's worthless.

Our older car is a 1999 Hyundai Elantra with about 230K miles on it. It's worth about $100. We have had cash set aside for a new (used) car for a few years now, but maintenance costs for the Elantra are relatively low, so no point in buying a depreciating asset with cash that is earning us interest. I get that most people are embarrassed to drive an old, non-luxury vehicle, but I love it. I've never had a car payment and touch wood, never will!

 

[monarch64]

Can you get along with just one car for as long as it would take to save to pay cash for a new one? You could sell the Civic now, stash the money in something interest-bearing (is there such a thing right now?), save up to buy something new, then trade the Mazda in with plenty of life in it a few years from now?

I never had a car payment until 2006. Then, in 2008, I bought a used Jeep from my boss at the time and have been driving it ever since. I just paid it off. Will probably keep it as a 2nd or 3rd vehicle until it's totally done. It's a 2002 with 137k on it. Only thing I've had to do is replace a power steering hose and tires. We'd like to keep it for a 3rd to tow our boat with (we're close to a huge reservoir) and it has racks on top for other recreational stuff or luggage for road trips. It's so nice not to have a car payment again that I don't want to buy anything new til we have the cash saved up.

 

[baby monster]

My personal guideline is when the cost of repair is greater than current resale value of the car. At some point you begin to rebuild the car with new parts. Btw, I'm also on the "drive it into the ground" team.

 

[Clairitek]

Thanks for the thoughts everyone. Turns out that investment into the old car was closer to $1400 than $1000 so ouch to that! Oh well. At least she's in great shape for a good long time for us.

MC- We've discussed larger payments on the Mazda loan. It's certainly possible and we've entertained just paying it off. It's a super low interest rate but as Kenny mentioned interest is money down the drain and nothing is gained from it except for keeping more liquid cash on hand at the moment.

MZ- Our mechanic agrees with you re Hondas. My last car was a Honda Accord (1994) and died an intimely death that was fairly unusual for a Honda with only 165k miles on it. I'm glad that this one has made it this far.

Chrono, MZ, NEL, Julie, Deco, and baby monster- I see what you mean about trade-in/resale value vs the value of the older, paid-off car that doesn't have a monthly cost. If we were to buy something new (to us, likely not brand new) we would be paying $300-$400 on it. That's $3600-$4800 annually. If we have a reapair that expensive it wouldn't be a massive loss to just trash it/sell for parts because even keeping it for less than another year saves us a ton in car payments. From that view point it's certainly worth just keeping it for as long as we can stand it.

Monnie- I'd LOVE to be a one car family. We were for nearly two years after we moved out here and it was glorious. But then I moved to Utah and needed a car there since I worked in the middle of nowhere. With a baby in mind I don't think we can sell the Civic now.

Thanks again to everyone for their input. After talking with DH more about it last night he told me that he doesn't mind driving an older car because to him a car is just a way to get from one place to another. After dumping a lot of money into it last night he really wants to run it into the ground. He pointed out that we do have the more comfy newer (safer) car that has more space for road trips and baby. I have a friend with Tercel that has well over 300k miles on it. He's been talking about buying a new car for years but still hasn't bothered. It's quite incredible to think about all the money he has saved by not buying a new car. Thanks all for reassuring the sensible side of my brain and not letting the "Ohhhh shiny newish car!!" side take over. PSers are certainly a savvy bunch when it comes to $$.

 

[TooPatient]

We traded in our Mazda CX7 when it had a bit over 85,000 miles on it. This was the newest car either of us had ever gotten rid of. What it came down to was the warranty was ending at 100,000 miles. Since it was the first year production and had the turbo-charged engine, we had several problems with the car. All problems were covered under warranty but there were two things that each happened twice ($5,000+ repair cost without warranty) and were about due to happen again AND the turbo-charger brought other issued in that they can (and this one did) go bad and have to be replaced (at near $10,000).
We knew that we would get rid of the car before the warranty ended because that was just too much out of pocket. We decided to trade it in when they came out with the next model (CX5) that got better gas mileage and was available when we still had some trade in value.

We only have the one car (CX5) and have had it for 1 1/2 years now. Not sure how long we'll keep this one. So far, it has had no problems at all. We'd love to keep it longer than the warranty coverage (assuming it doesn't have major issues like the other one).

Our aim is to have this one paid off soon and then keep it until "the right time". I guess we'll figure that out as it comes. Ideally, we'd trade it in while there is still some trade in value and then pay cash for the rest of the new one.... Someday!


Oh -- Before the CX7 we had two older cars. The engine and transmission needed replaced in one (along with new brakes and other smaller stuff) and then the transmission went out in the other (or was that the engine?). Repairs would have been big $$$ and we would have been without any car (or stuck paying $$$ for rental) until repairs were done. It made a lot more sense to donate the cars and just buy a new car.

 

[movie zombie]

it really is easy to get seduced by all the new gadgets on cars.
the reality though is that they are merely transportation devices.
admittedly, my 2005 Honda accord has leather seats and some other nice features......
no GPS which is how I like it!
hubby's last bill on the 1993 was over $1k.
but it was still cheaper than another car, even used.
we've done the ball bearings twice!
he likes the car and at the end of the year that car is less than car payments.
go HONDA!

 

[monarch64]

MoZo--great points. My dad drove the '77 Cadillac his dad gave my parents the year he died until that thing was a total goner. I think he finally had it hauled away in 1999. I remember the leather being so cracked from the years it had spent in the sun and salt weather in Fort Lauderdale! My mom really used to get after him about that car because it started to rust out. He didn't give a whit.

We don't mind driving older cars at all. My husband is a pretty good mechanic. Sometimes we have to borrow a tool or something but for the most part we do our own maintenance on our vehicles. Great skills to have. Anything we don't know, like how to replace my power steering hose, we watch youtube videos and learn from there. How did anyone survive without the internet??

Clairitek, glad you came to a decision that works for you both. Here's a good baby/car tip: when you park at a supermarket, get the space next to the cart return, or as close as possible. Lugging a carseat with baby in it stinks when you're a long way away from the carts, and when you're by yourself and have to return the cart you don't want to leave baby in the car alone for long.