Sweet spot for car upgrade

[IMATERP]

Dilemna on my hands....

Greetings Everyone,

I havn't formally introduced myself but I'm a FIRE wannabe. Looking at potentially 07/17/2017 as the Magic Date. Anyway, were talking about cars here...

I've got a 2008 Honda Accord with 120,000 miles and I'm debating weather to put more money into it or just cut my losses. You see, two years ago - the engine died at 97,000 miles and Honda negotiated a partial fix for me. They offered to replace the engine with a brand new engine for $3,500 (my portion.) The car was worthless without a running engine but worth around $7,500 - 8K with a running engine. Hence...no brainer...
During the past year, my vehicle has developed a grinding sound when starting in cold weather conditions. It's a known problem but Honda has no fix. Hence, I feel as though I'm damaging the vehicle anytime I turn the key (when I hear the sound.)

So, I am pondering either putting in $700 for the 120K Maint w/Spark plugs or just getting an oil change or two over the next year - and cut my losses.

I am very attached to the Honda but I need to keep the sentimental feelings aside. In fact, I sent a request to our local mechanic requesting a quote for the servicing and if he thinks that Honda might have a fix in place for the "grinding start up" during winter.

 

[Big_Hitter]

what does CFP stand for?

 

[IMATERP]

what does CFP stand for?

The intention was to be Certified Financial Planner but I never ended up going that route. I specialize in finance work with Non for Profits and Govt. Accounting in the State Govt. System. So, in essence, it really means nothing - but the financial knowledge that I have attained through School and work makes me very astute financially.... (55, Paid off home, Free Health Insurance from age 60 on, Monthly pension from age 60 on, etc.)

Michael

 

[REWahoo]

The intention was to be Certified Financial Planner but I never ended up going that route. I specialize in finance work with Non for Profits and Govt. Accounting in the State Govt. System. So, in essence, it really means nothing - but the financial knowledge that I have attained through School and work makes me very astute financially.... (55, Paid off home, Free Health Insurance from age 60 on, Monthly pension from age 60 on, etc.)

So your user name should actually be "MichaelnotaCFP"

 

[Big_Hitter]

So your user name should actually be "MichaelnotaCFP"

I thought it was Can't ****ing Plan - good to hear though

 

[Jerry1]

I've been thinking about this given the two sweet spot posts. I'm running some numbers and of course, it matters which car you buy, but I am thinking the following might be pretty sweet.

Buy a couple year old car. Say it has under 30,000 miles. Drive said car for five years or about 100,000 miles. Sell the car for what will still be a pretty good price.

For example, seems like I could get a used Camry for $20K. Drive that for 100,000 miles and sell it. It should still fetch $5K to $10K. Using $5K, you would have spent $15K plus repairs. So the cost of the car is $3,000 per year and/or $15 cents per mile. Beyond satisfying the need to drive for a reasonable cost, you don't get too far away from current technology and you are upgrading every 5 years or so.

I tested this out on Autotrader and it worked pretty well for some cars and not at all for others. Some cars depreciate very quickly and severely. For example, one two year car was about $30K but a seven year old car with over 100,000 on it was close to $10K. Still not bad, but the Camry example worked really well.

I'll run some more examples and see what I get. Does/has anyone done this as a rule?

 

[REWahoo]

I'll run some more examples and see what I get. Does/has anyone done this as a rule?

Haven't done it 'as a rule', but I have done it - and it is a very good strategy provided, as you stated, you choose the right car.

Example: DD#1 & family just purchased from a dealer a one-year old Camry (the SE mid-trim level) for $16K. It is still under factory warranty and as a Certified car has an extended warranty plus two years free maintenance (oil changes and tire rotations). They will put 25,000+ miles per year on the car and keep it for at least four years when it should be worth $5,000 or so, depreciating about $11K.

Not bad.

Edit: FWIW, I'm a big fan of buying one or two year old Certified vehicles. We currently have two - a 2014 Toyota Highlander and a 2015 Buick Regal.

 

[IMATERP]

So your user name should actually be "MichaelnotaCFP"

I resemble that remark....

Anyway, per my previous message regarding the Honda - I've opted to do the Maint. and keep it for 2 more years. I took the opportunity to stop by a local AAA (not AA) auto center and determine if the quote from Honda was reasonable. It was, I just dont keep up with the cost of change.

Michael

 

[MOSAT]

The DW and I are also contemplating a new car. We have a newer Honda Civic 2012 with 30K miles on it so that one's good. It just rides a bit rough for longer road trips, which we are planning on taking in retirement. The other is a Toyota Camry 1999 with 140K miles on it, great car, rides good , few if any repairs, but they are getting more frequent. The car is just getting long in the tooth for an over the road car. My usual decision point is when the monthly cost of repairs starts to equal or exceed a new car payment. We finance them, with low interest as it is it's not bad. So we are in the market now to replace the Camry. Any suggestions on an "over the road" SUV type car?

 

[REWahoo]

Any suggestions on an "over the road" SUV type car?

Toyota Highlander

 

[Big_Hitter]

Toyota Highlander

Subaru Forester Turbo

 

[braumeister]

Honda CR-V.
My last three cars, including the current one.
I don't keep them much past 150K miles, but I've been extremely happy with both the comfort and reliability of them. Zero maintenance beyond the standard oil changes, etc.

 

[Big_Hitter]

Honda CR-V.
My last three cars, including the current one.
I don't keep them much past 150K miles, but I've been extremely happy with both the comfort and reliability of them. Zero maintenance beyond the standard oil changes, etc.

I've had 5 foresters...crvs are too hard to see out of, plus I don't see many of them on the ski hill

 

[REWahoo]

Honda CR-V.
My last three cars, including the current one.
I don't keep them much past 150K miles, but I've been extremely happy with both the comfort and reliability of them. Zero maintenance beyond the standard oil changes, etc.

I'm a fan of Honda reliability - we had a 2008 Pilot that was a great car - except for road noise. I test drove a new Accord and CR-V and found the road noise improved, but still significantly elevated. Very irritating, especially on long drives.

 

[braumeister]

I've had no problems with the CR-V on the ski hill, but I agree the Forester is a good car.

Every time I've gone shopping, I wind up with two or three top choices, and the final decision comes down to one thing. How comfortable is the driver's seat for a long trip? Every time, it has been the CR-V. Your butt may vary.

 

[Big_Hitter]

I've had no problems with the CR-V on the ski hill, but I agree the Forester is a good car.

Every time I've gone shopping, I wind up with two or three top choices, and the final decision comes down to one thing. How comfortable is the driver's seat for a long trip? Every time, it has been the CR-V. Your butt may vary.

ybmv? yeah I dig subaru seats

 

[Gearhead Jim]

vettes have such a high depreciation rate I'm not sure I'd ever buy a new one and I like new cars. You can get a NICE c5 nowadays for a little over 10K

check out this c6 https://boise.craigslist.org/cto/5782062852.html

As stated in my previous post, I consider a Corvette to be as much a toy as transportation. And if you put a lot of miles on them like we do, I'd never own one that wasn't under factory or GM extended warranty. Your situation may be different.

I wonder how a 12-20 year old Chevy sedan compares in price to a Honda or Toyota of the same age?

C5's are now between 12 and 20 years old, and at just 5k miles per year will have between 60k and 100k miles. They seem to get lots of TLC from the first owner and then it usually goes downhill after that.
I've seen several new members in our local Corvette club who bought a "nice" Corvette 10-20 years old and got eaten alive by the repair costs.

 

[Big_Hitter]

I wonder how a 12-20 year old Chevy sedan compares in price to a Honda or Toyota of the same age?

good question. I have a 95 firehawk convertible. I think I could sell it easily for $8K. Not sure a 95 honda/toyota would sell for that.

 

[JohnnyBGoode]

I've got a 2003 Lexus RX 300 AWD with 202,000 miles on it, so I'm definitely in favor of driving a car as long as it makes sense. In addition to all the other posts here about reliability (and we are a 4-for-4 Toyota family) I think one other thing to consider is the safety improvements in newer cars.

As long as the older car is running well and has the basics (airbags, anitlock brakes, etc.) then I think it is fine to keep driving, but when one gets close to the "tipping point" about whether it is worth upgrading to a newer car (not necessarily brand new, but newer) then I do think the new safety features available are well worth considering. These include backup cameras, side cameras, radar-controlled cruise control, etc. Yes, they would be more to break down presumably but there is considerable upside.

For me, my car is still running fine but the 20-mpg is a bit annoying. I've got an order in for one of those new Tesla 3's coming out end of next year (first new car purchase is 20+ years). They seem worth waiting for and I'm quite happy driving my older car for a while longer. There is question whether it will be worth just hanging on to it for drives to the snow after the new Tesla comes in, but I've got some time to think about it.

 

[Big_Hitter]

Thanks, I am very interested in the Evolution you posted. I have looked at a few used ones on Craigslist, but they have a few problems

Sent from my XT1254 using Early Retirement Forum mobile app

I just went to the club car dealer that is fixing Blackie (my 08 RXV).

He said he's had nothing but problems with EVs and Star carts. Apparently once the batteries go out (usually within 2 years) they are very expensive to replace. He says they are made cheaply in China.

Of course he tried talking me into buying a brand new, fully loaded club car for $8600.... ...worst part is I'm seriously considering it

 

[Car-Guy]

Sweet spots for cars/trucks. Either very recent/current models (new) or 40 to 60 years old. Very little interest in anything in-between.

YMMV (and probably will for most on this board)

 

[Big_Hitter]

^^ You mean like these two beauties?

 

[pb4uski]

.... Any suggestions on an "over the road" SUV type car?

We have been really happy with our Subaru Outback. It is a great road-trip car... very comfortable... plus AWD and a higher ground clearance than most SUVs. IMO, it is somewhat between a wagon and an SUV.