Car Purchase -- Deciding When

[free4now]

Huh? Of course that point happens. It might not be easy to determine when it occurs, but it would seem to have to occur. I don't know of anyone who's been driving a car heavily (i.e., realistically) for 4 decades.

While it's certainly true that there aren't many 40 year daily drivers on the road here, the reason is not because "the repairs on a 40 year old car cost more than the cost of a new car". It's generally because one of two things happened:

1. A big repair was required that would cost more than the purchase price of a better used car.

2. The owner found the old car undesirable due to reliability or other concerns.

I do agree that there probably is a point perhaps 20-30 years into a modern car's lifetime when it will be more expensive to keep nice than payments on a new car. But that point is mostly irrelevant because anyone except a classic car collector will have sold it a long time ago.

 

[starter82]

While it's certainly true that there aren't many 40 year daily drivers on the road here, the reason is not because "the repairs on a 40 year old car cost more than the cost of a new car". It's generally because one of two things happened:

1. A big repair was required that would cost more than the purchase price of a better used car.

2. The owner found the old car undesirable due to reliability or other concerns.

I do agree that there probably is a point perhaps 20-30 years into a modern car's lifetime when it will be more expensive to keep nice than payments on a new car. But that point is mostly irrelevant because anyone except a classic car collector will have sold it a long time ago.

Exactly. It's all the more reason to focus less on the cost of what the new car will cost.

I didn't say new car or used. Had I, 'new' would have referred to 'different' car.

Yes, I believe that if you go far enough out.... it's not just about how much repairs will cost but also the time that you're without the car (renting a car? paying a friend to drive you around for a few days, etc.?). It's not simply about any one repair but about the total cost. I think it'd be somewhat difficult for a single repair to be more expensive than the cost of a new car (clearly depends on the kind of car). Then again, the Civics of today get worse gas mileage than those of yesteryear. That should be a factor as well.

Also, how high's the resale? Around here, there are several Honda models (and others) that don't drop in value very quickly. I bought a new one (first car) because the used one wasn't much cheaper. Add in the warranty and possible greater dependability, not beatable.

 

[old woman]

I am 59 and my Dodge Dakota is 10 it runs fine so I will keep it a while maybe in about 6 years if I don't trust it I will buy something new. If I buy new at 65 it might be my last car since I won't commute it shouldn't get 90K miles in 15 years and by then I will be 80 it if last a few more years and dies it may not be worth buying another so maybe i should buy one sooner replace it when I am 75 so I have a nice one the rest of the years I want to drive. Mom got a new one at 77 but she doesn't drive much now probably doesn't have 15,000 miles in 3 years.

 

[JustMeUC]

I had a 91' Honda Accord that got over 300,000. It was still running like a trooper when it got killed by tree during Hurricane Fran. I averaged about $300-500/year on maintenance including oil changes.

Now I bought a 92' Toyota Camry with 190,000 miles that I bought off my boss for $1800 last year. The interior and exterior were spotless. I knew that he changed the oil every 3000 miles (overkill in my opinion) and he had all maintenance records and I have since put about 30,000 miles on it with just oil changes. I hope to get over 300,000 miles on it. <fingers crossed> I average 30 mpg which I check regularly.

I also have a 2001 Chevy S-10 truck that has 30,000 miles on it. It is basically used for Truck purposes.

I just can not justify buying a new(er) car when there are so many perfectly well maintained older Toyotas and Hondas out there that can easily reach over 300,000 if taken care of. There is no way that I can spend the kind of money on maintenance that you take in depreciation with a new(er) car. I look at a car as a way to get from point A to point B. My cars have the basics, PW, PL, Cruise, AC etc etc....

Sure, It helps that 90% of my miles are highway, but still.... I carry a cell phone and have family nearby that could come to my rescue if I broke down.

 

[Spanky]

Amazing! >300K miles. We sold our Camry when it had 160K miles. It's possible that it might had been good for another 100K miles.

 

[Sandy]

Since grad school, I have only gotten rid of cars under 2 conditions:

The car has been wrecked beyond repair. I had one car totaled when a truck hit me while parked, another had a bent frame from a wreck by someone who borrowed it. It had been repaired, but kept wearing out the right front tire every 3-6 months, so I decided it probably wasn't completely safe.

Lifestyle changes: I had a 2 door hatch Mazda 323 that was 13 years old and needed a new clutch. But, I also had two car seats in the back, the twins getting larger, and it was too tight for my DH to get in and buckle them up. We bought a new 01 Honda van - which we will keep and probably give to the twins when they can drive (only 5 more years).

 

[FinanceGeek]

I tend to buy ex-rental vehicles, they come at ~2/3 of "new vehicle" cost with ~20k miles on them and the balance of the manufacturers warranty. They also tend to come fairly loaded in terms of features, which can be a good or bad thing. They tend to be American made which depending on your opinion can be good or bad.

For a full sized SUV I'd pay around $20k for such a vehicle, at 10% opportunity cost thats $2k per year and I figure another $2k per year for depreciation. So if non-routine maintenance repairs are less than perhaps half that, or say $180 per month I'd keep the vehicle, otherwise I'd get another one. There are second order effects too like higher insurance premiums on a newer vehicle's comprehensive / collision but I haven't included them in my model.

In practice I keep my vehicles around 10 years which gives me around 120,000 miles above and beyond what the rental company put on them. I've done this for many years, did it with passenger cars before SUVs were popular too, and its worked out OK so far.

I've encountered a singularity in my model right now in that gas prices have risen tremendously, making the resale value of my existing SUV @ 15 mpg pretty darned near zero. So, I'm a bit stuck as of now.

As others have said there are tremendous quality and safety improvements trading up to a newer vehicle - in car navigation, LATCH child seat attachment point, side airbags, etc etc etc

 

[TromboneAl]

One consideration for me was that 1. we live 30 miles from the mechanic's, and 2. I didn't want to break down in the middle of nowhere (which I drive through a lot).

But now 1. I'm retired, so I have the time to take a car in for repairs, and 2. I have a cell phone.

I saw this guy on Jay Leno:

This Volvo has been driven 1,800,000 miles.

It is almost all original, only a few parts replaced, and it's been repainted a few times. The engine was rebuilt once at 680,000 miles.

 

[TromboneAl]

That info was out of date. He's now driven that car over 2.5 million miles.

 

[starter82]

He must really love the car.

 

[W2R]

He must really love the car.

I am all for LBYM, but after imagining getting into that 2,500,000 mile car enthusiastically each morning, somehow this seems a little twisted.

I'll bet the seats are VERY uncomfortable by now, and I'll bet it smells a little odd.

 

[audreyh1]

The last two times our car purchases were driven by a changes in lifestyle - needing a bigger vehicle and then later needing one that could be towed behind our motorhome.

Before that we bought really reliable cars (Toyota, Honda), and then pretty much counted on them lasting us for 10 years. We always did the annual maintenance, and were hit by very few "surprise" repairs.

Audrey

 

[FinanceDude]

We have two different cars for two different needs:

Mine: 2003 Honda Accord 4-cyl: gets the brunt of the miles, errand runner, everyday everything car.

Hers: 2006 Honda Odyssey. Loaded vehicle, vacation cruiser, etc. Also useful for hauling the many things one needs, from softener salt to 2X4's, etc. DW only drives about 8000 miles a year so we'll keep this one for at least 10 years. Has Navi, rear DVD, and XM for the long trips...........

When we retire, we'll go down to one vehicle,but not sure what that may be...........