Tempted by a new car

[soupcxan]

Current car (mazda) is 8 years old with 80k miles. Generally its mechanically sound but a couple of things have popped up that are getting to about $1000 to repair. Also the suspension has gotten really noisy and the dealer says there's not much they can do about it. I can certainly drive this car another 1-2 years but don't feel like I'm going to keep it past 100k. Carmax offered to buy the mazda for $5,500.

I drove the Accord and CR-V but I have to admit I like the Acura TSX the best, at under $30k (similar offerings from Lexus are over $35k). No question that I can afford it, but I also know that new cars are just holes in the ground you throw money into. Like the Accord, the TSX holds its value too well so buying used doesn't make sense.

There's no question that paying $1000 to fix the mazda and driving it for another year is cheaper than buying a luxury car. But I'm getting to the point where additional investments in the mazda feel like throwing money away. Would be nice to have the additional safety features (6 airbags vs. 2) and other comforts from the newer car.

 

[travelover]

I say take the Mazda in and have everything fixed, have it detailed inside and out and have some new car smell air fresheners hung from the rear view mirror.

 

[Nodak]

The last car I bought was a "program" car. The local dealer picked it up for me at the Ford company auction. It had been used by a Ford Motor Credit employee who put 6,000 miles on it. I saved about $5,000 that way.

 

[JBmadera]

I just went over to the Acura site to check it out - nice looking car. Just before I closed the page DW walked into my office and asked me what heck was I doing looking at new cars....doh!

My honda has 100k miles and it's still going strong, I just repair it as needed, hoping to get 150k+.

 

[kjpliny]

We bought a new 2009 Acura TSX for my wife, replacing her 96 Camry which had 145k miles on it. The Acura is very nice. We got the Tech Package...everything total was $32k with NYS taxes, plates, etc. We paid cash. I highly recommend the car.

 

[W2R]

You know you want this car, and if you don't buy it this year, you'll buy it in the next year or two. It seems to me that the only decision here is not IF you should buy it, but when.

Your repair bills will vanish if you are driving a new car. Also, with inflation on the horizon, and with Toyota's quake-related problems, prices of all cars may increase in the next few years.

I think you should go for it. You can afford it, you want it, and it's time.

 

[Janet H]

The key here is understanding that if you can afford it and you want it, you are purchasing pleasure.

Last year I also replaced an aging but functional vehicle with a more expensive one. It has all kinds of bells and whistles. I could have either fixed the old rig or purchased a cheaper replacement; either solution would have solved my transportation issues.

I still smile when I settle into my comfortable heated seats and turn on the fancy radio. I bought a little personal pleasure. I worked hard for it and this is how I choose to spend my dough... no guilt. Ok... not much, anyway.

 

[FinanceDude]

I know a couple mechanics, they are not very high on Mazdas at all, lost of "little things" that cost lots of money. One thing about Acura, they are reliable as heck, look good and not dated over time, and you can drive them forever..........

My next car is the TSX wagon, but not for a few years..........

 

[Nords]

Current car (mazda) is 8 years old with 80k miles. Generally its mechanically sound but a couple of things have popped up that are getting to about $1000 to repair. Also the suspension has gotten really noisy and the dealer says there's not much they can do about it. I can certainly drive this car another 1-2 years but don't feel like I'm going to keep it past 100k. Carmax offered to buy the mazda for $5,500.

Without a car crisis driving the agenda, you have the perfect opportunity to stalk Craigslist & AutoTrader for a few months and pick up a real score. Nothing moves the negotiations along faster than a diffident attitude of "Well, thanks, I think I'll just keep driving my beater Mazda for a few more months and see what else comes along."

I still smile when I settle into my comfortable heated seats...

The only flaw in that image is living in a climate that makes heated seats a good thing...

 

[Ronnieboy]

My honda has 100k miles and it's still going strong, I just repair it as needed, hoping to get 150k+.

And that is a low estimate

 

[soupcxan]

My next car is the TSX wagon, but not for a few years..........

That is a good point, if we decide to start a family in the next year or two I don't know if I would regret this...on the other hand, it's not like buying a coupe that is totally impractical, and DW's car is also going to be due for a replacement.

 

[landonew]

Current car (mazda) Also the suspension has gotten really noisy and the dealer says there's not much they can do about it.

I think the dealership is trying to sell you a new car. Apart from the frame, essentially all parts on a vehicle can be replaced. It's a question of "cost", not a question of "can". If you want to get an idea of the cost to fix (i.e. quiet) your suspension, you should consult an independent mechanic (perhaps even several, to get multiple bids). The fix could be as simple as a little grease placed in/around a few bushings, or as complicated as rebuilding the front-end. FWIW, I recently had a reputable mechanic rebuild my '00 dodge pickup's front end for around $1500 (parts + labor).

 

[MasterBlaster]

A few points for discussion.

1) Just the interest on the difference between a new Acura ($30k) and the existing Mazda ($5.5k) @ 4% is around $1000 per year. It's more if you consider the opportunity cost on the long term (investment) growth of that money.

2) The sales tax on the new car alone would pay for any needed repairs on the Mazda.

3) The choice is not only between the old Mazda and the new Acura. There are a whole spectra of new and used cars between the existing Mazda and the new Acura. Each new or used car fits particular price points and quality levels.

4) Cars don't quit at any particular mileage level. Engines and transmissions can be rebuilt. Pretty much everything can be repaired.

5) Buying a new car is almost always an emotional or personal decision. It almost never makes economic sense to buy a new car.

6) But Oh that new car smell !

 

[Animorph]

I try to have DW buy a new car after 8 years simply to avoid the hassle of a car that is getting less dependable rather quickly as it ages. I'm willing to spend something for that benefit, though in my experience 8 years seems more like a break-even cost point for our cars than a lifestyle choice. If you can afford the TSX and feel it's worth the money, go for it.

 

[67walkon]

Acura has .9% factory financing right now on new cars. My daughter just bought one last weekend. .9% APR is pretty sweet--it doesn't make sense to put your cash into it, unless you are making less than .9%.

 

[e86s54]

The last car I bought was a "program" car. The local dealer picked it up for me at the Ford company auction. It had been used by a Ford Motor Credit employee who put 6,000 miles on it. I saved about $5,000 that way.

Ditto...however that car might have been a rental. That's not always a bad thing, but might lower your warranty. But to me it was worth the big price discount for an essentially new car with lots of warranty.

The TSX is based on the euro Accord and is very well rated. I have owned a TL a couple of model types ago and it was a good car and Honda/Accura stood by it, but then I didn't have any problems to 100k miles when I sold it. I still see it from time to time 6 years later with the same person I sold it to driving it to work.

My wife also just returned a Lexus IS250 AWD. Very nice looking car, but overall we were disappointed and not likely to buy a Lexus again. After owning a few german cars (BMW/Audi), I'm partial to the germans.

But in the case of the TSX, I believe it is good value for the money. However, keeping the Mazda would be the cheaper route to take...but its not all about money and a TSX is certainly not an extravagant car.

 

[soupcxan]

Part of the irritation factor with the mazda are things like this - one headlight starts working intermittently. If you bang on it, it works for a while. I replaced the bulb but the short seems to be inside the headlight assembly which can only be replaced as a whole unit (which is a couple hundred bucks just for the part, and to replace it you have to take the bumper off, which adds more labor, etc.). Now it's totally dead and driving with one headlight is just not safe. So we could be talking about $750 all-in just to fix the light. Even at an independent shop it seems like it could cost close to $500 for parts and labor.

I think I could accept the cost better if it were a wear and tear item (a water pump, a timing belt, etc.) but the light just sits there. Why is it shorting out? I don't live in a damp climate!

 

[Moemg]

That is a good point, if we decide to start a family in the next year or two I don't know if I would regret this...on the other hand, it's not like buying a coupe that is totally impractical, and DW's car is also going to be due for a replacement.

If you are getting ready to start a family I would buy a slightly larger car .

 

[jazztbone]

Are you FIREd? If not, I would fix up the car and drive it until repairs become no longer cost-effective. $1,000 (even a year!) is a drop in the bucket compared to buying a new car.

If you are FIREd and it fits in your annual spending budget, go for it!

That's the mantra of this board, isn't it?

There are lots of things I can think of that are "nicer" than what I currently have, but none are worth postponing my FIRE schedule. You have to make your own choice.

 

[soupcxan]

Are you FIREd?

I'm approaching 30. If I were FIRE'd I wouldn't care about the suspension noises because I wouldn't be driving anywhere, and I'd have the time to fix the dang headlight myself.

 

[BigNick]

I think I could accept the cost better if it were a wear and tear item (a water pump, a timing belt, etc.) but the light just sits there. Why is it shorting out? I don't live in a damp climate!

This reminds me of something that used to tick me off on eBay. I would look at a $5 item and not buy it because it had $8 of postage. But had it been $12 with $1 postage, I'd have said, hey, good deal!

If you feel like having a new car, that's great. But come out and say so. And don't forget that it will depreciate by $5K the moment you drive it off the lot.

I reckon that people who buy cars new and sell them after 3 years probably spend $140/mo (plus or minus a lot, of course) more than people who buy that car after 3 years and keep it for 6 more. Reckoning: $24K car, 50% depreciation in first 3 years, $4K/year, versus $12K car, 80% depreciation in 6 years ($1600/year) plus $720/year in repairs (less in year 1, more in year 6). $140/mo is $42K from the portfolio with a 4% WR. Two car household, that's $84K more you need in the portfolio.

 

[jazztbone]

Well, you ain't gonna get to FIREd by blowing 30k on a new car. You've gotta put your priorities in order, son. Frugality is the number one key to getting there for the average middle-class millionaire. Be conservative with your spending now, and by the time you're 45-50 you'll be able to buy any car you want, and have all day to drive it anywhere you want!

 

[powerplay]

I say if you really want the new car and can comfortably afford it then go for it!

I don't agree that the slightly used car is always the cheaper/better deal. In 1999 I purchased a new Camry. It was an ad car from the Saturday newspaper which always features lots of car ads. I waited 3-4 months before what I wanted came available via the Saturday ads and also the dealer had 10-12 of them advertised at the same price. It was then that I went to the dealer and bought the car. Meanwhile I looked at 1-2 year old used cars and found the prices higher than the new car I ultimately purchased. The Fleet broker I checked with at a local dealer flat out told me he wouldn't match the ad price and tried to steer me to another brand of car. It's been a good car and I'm starting to think about a new vehicle for a variety of reasons.

 

[brewer12345]

Part of the irritation factor with the mazda are things like this - one headlight starts working intermittently. If you bang on it, it works for a while. I replaced the bulb but the short seems to be inside the headlight assembly which can only be replaced as a whole unit (which is a couple hundred bucks just for the part, and to replace it you have to take the bumper off, which adds more labor, etc.). Now it's totally dead and driving with one headlight is just not safe. So we could be talking about $750 all-in just to fix the light. Even at an independent shop it seems like it could cost close to $500 for parts and labor.

I think I could accept the cost better if it were a wear and tear item (a water pump, a timing belt, etc.) but the light just sits there. Why is it shorting out? I don't live in a damp climate!

There is a point where the PITA factor becomes an issue, in some cases more than cost considerations. If you get to the PITA limit, it is time to shop for something new(er).

If it were me, I would take it to a good independent and have them fix *everything* once and for all. Drop a couple of grand and run the car for a few more years. But I don't drive a whole lot and I do not much care about cars. You may just want a new car, in which case have at it. But if it is just the PITA factor, spend a couple grand rather than 30 and keep it going for a bit.

 

[freebird5825]

I just went over to the Acura site to check it out - nice looking car. Just before I closed the page DW walked into my office and asked me what heck was I doing looking at new cars....doh!

My honda has 100k miles and it's still going strong, I just repair it as needed, hoping to get 150k+.

Ditto...my 92 Honda Accord EX has 142K miles, a ton of rust on the rear quarter panels, the rear bumper cover almost falling off but still running like a top.
Mr B has taken it over as his own little putt-putt (my nickname for it ) car to drive around. The Honda in the shop now getting new wheel bearings in the front, and some long screws and possibly some automotive grade epoxy to refasten that bumper cover. I already used some blow-in foam (permanent kind) to seal some rust holes above the rear wheels. My mechanic was impressed.

So he is driving his own car, an Impala with 145K miles on it.

Moral of the story? BOTH cars are PAID FOR.