Thread: Economics of Repairs vs a Newer Car

Originally Posted by h0wl0ngcanitbe

One solution would be to find ways to make more money and not worry about the small differences in life. Its really not that hard to try and generate the difference in income between owning something new and the maintenance of something used. Just a different perspective.

If it were that easy to make more money, everyone would be doing it. I have been trying to generate extra income for several years now. The only way I ever accomplished that was when I was still parting cars out. I made most of my money doing that while I was out of work. I also made most of my money doing that on big ticket items. I still have some stuff left and have been sitting on it for a long time now. I only sell a few things here and there because I don't have anything left that people are in major search of, or shipping is too expensive on the big items to make it feasible for the buyer.

And another thing, if you are just getting by on what you make now, just because you generate a little more income, doesn't mean you can afford a new(er) car. Financial responsibility is key. Finiancial irresponsbility is why this country is in the situation it is in.

Think about who will be driving the older car. If it is your wife with a new baby girl in the back seat, I would rather have her in something newer traveling through Minneapolis or any other major city. It would be awful for a car to break down on her and the new baby in the middle of rush hour. As someone else said said, how major/$ are the reapairs and did it leave you stranded. How long was it out of service?

Most importantly, what is the car used for?

I think that depends on who it is for. At work I have often been asked this very question. I think it boils down to how much is being spent on repair over time. I will google their ca nd see what common problems are likely to pop up an try to determine cost of repairs. In most cases when those numbers approach the cot of a car payment on what ever replacement they woould buy, I tell them to start looking. These are also people who have no ability to do any repairs. I also encourage them to consider an extended warranty if available. In Houston you must have a car to get around. You have to rent a car or get really creative when your car is in he shop. These people need their cars to run. If they are spending a car payment on repairs, but their car is in the shop often, it's time to move on.

Obviously this changes for people who can do some of their own work or have an extra car.

Originally Posted by matt5112

Better seats for the same investment? I think its a done deal.

Feel free to list the other +36 things that are better.

Originally Posted by stealthee

And another thing, if you are just getting by on what you make now, just because you generate a little more income, doesn't mean you can afford a new(er) car. Financial responsibility is key. Finiancial irresponsbility is why this country is in the situation it is in.

I guarantee you if you ask the people that are just "getting by" how much there Cable TV bill, Cell Phone bill, various other monthly subscription ie Magazines, Xbox live accounts, Net Flix, Starbucks/Smoking habit they will have a blank stare. Not fighting your point but there are other ways to generate income. Like reducing some excess and unnecessary expenses for one. You said it yourself there are ways, its not easy and if it was everyone would be doing it. My point exactly. Again its all about perspective.

I can look at the average american and reduce there monthly expenditures by 100-250 a month in five minuets just by looking at a three month bank statement. That adds up over time.

Originally Posted by h0wl0ngcanitbe

I guarantee you if you ask the people that are just "getting by" how much there Cable TV bill, Cell Phone bill, various other monthly subscription ie Magazines, Xbox live accounts, Net Flix, Starbucks/Smoking habit they will have a blank stare. Not fighting your point but there are other ways to generate income. Like reducing some excess and unnecessary expenses for one. You said it yourself there are ways, its not easy and if it was everyone would be doing it. My point exactly. Again its all about perspective.

I can look at the average american and reduce there monthly expenditures by 100-250 a month in five minuets just by looking at a three month bank statement. That adds up over time.

People just don't get it. I have that same conversation with people regularly. Then they tell you they HAVE to have the latest smartphone even though they had to pay $600 for it. Last years model just made their life miserable and they couldn't go on. And for some reason they need massive data, texting, and minutes because they can't live without that thing constantly in their face. People have a very skewed idea of needs vs wants.

A big one I always get people with....lunch. I work downtown and our office has refrigerators, microwaves, toasters, drinks, chips, cookies, etc all for free. I pack a lunch for work most days. I don't always have the time to get out and go buy lunch when I am busy anyway. Not too mention (being in downtown) they charge more for everything. I can pack leftovers, sandwich, frozen dinner, etc and save $$$$. These same people that are "broke" spend $10 a day on crap food every day (sometimes more when they splurge). Thats easily $200-$300 a month just on weekday lunches and this doesn't count their starbucks fix several times a day. Then they whine they cannot afford a new car, or tires for their car, or something else.

Originally Posted by h0wl0ngcanitbe

I guarantee you if you ask the people that are just "getting by" how much there Cable TV bill, Cell Phone bill, various other monthly subscription ie Magazines, Xbox live accounts, Net Flix, Starbucks/Smoking habit they will have a blank stare. Not fighting your point but there are other ways to generate income. Like reducing some excess and unnecessary expenses for one. You said it yourself there are ways, its not easy and if it was everyone would be doing it. My point exactly. Again its all about perspective.

I can look at the average american and reduce there monthly expenditures by 100-250 a month in five minuets just by looking at a three month bank statement. That adds up over time.

I am one of the people just getting by. My cable bill is $90 a month, and I am not going without TV. I didn't pay anything for my cell phone. The bill is around $98 a month, and I do HAVE to have my phone, its the only phone I use. Other than that I don't have any other extravangeces.

I spend about a total of $40 a month on lunch, so I know how to keep things simple and cheap.

In order to be able to afford a new car you would have to reduce someone's expendatures by about $400 a month, or figure out a way for them to make an additional $300 on top of what you can "save" them. It's not that easy.

Originally Posted by stealthee

I am one of the people just getting by. My cable bill is $90 a month, and I am not going without TV.

I dont know man ya kinda just said it there, if your just getting by and cannot "Go without" cable TV that kinda crystallizes the point. Bottom line is there is always a way to cut costs and despite how little it amounts to its a start and makes earning the difference less of arduous task. Im certain people have skills they could yield earnings that never come to mind in general life.

I've cut so much out and do without so much in life, I am not going without TV.

I've gone both routes, many times... I would say as far as the question goes, it depends on the use of the vehicle and the person using the vehicle.

If you're mechanically inclined and don't mind driving a jalopy around, a good used vehicle can be a good buy. That being said, you want something that you can find parts for at any junkyard, such as a Grand Prix, Civic, Accord, Etc. I can pull a complete engine at the local yard for $200+ a $50 core, and I don't think a trans is much more.

If you want peace of mind, or just dont' want to work on your own car all the time, I would buy newer. Most Auto Loans you can get something 7 years old, so this puts the best time to buy at the end of the year, when books are updated to include the next year model, and the older prices go down. If you get a 2006 in November 2013 it will cost a few grand less than it did in January. I would say get a newer vehicle you know the history of if you can, whether its from a friend/ family member, etc. There are a lot of shady tricks by dealerships to get by carfax, etc, so getting something slightly used from someone you know that bought it new and took care of it is always a good route to go.

Since we have touched on both, I'm going to give some advice which I've learned from personally. If you're into automotive hobbies, HAVE BOTH a Jalopy and a Good solid newer vehicle. You might be wondering why.... Here's a few reasons:
1) Keep miles off the Nice Car when you don't have to drive it
2) Experiance! This will be gained from working on the Jalopy. It can be made into a party with a few drinks and some friends involved.
3) If you can't fix the jalopy right away, you still have a way to work
4) They call a beater, a beater for a reason, have some fun driving it without any real consequence.
5) Mods void warraties! If you get a newer car with a warranty, leave it alone until the warranty is up, and mod the beater.

Another thing, if you have mutliple vehicles, get them for different purposes. For example, I am narrowing my car collection to a newer truck and my Monte. The truck will be a Daily Driven part/ car hauler, where as the monte will be a toy.

Originally Posted by stealthee

I've cut so much out and do without so much in life, I am not going without TV.

I truly hear ya I have "done with our" for so long it would drive you nuts.

Almost every problem I've had from a car was because the previous owner neglected things and broke them. Not to mention, I'm a non-smoker and finding a car that doesn't smell like burnt ashes and lacking cigarette burns in the headliner or elsewhere isn't easy. People here neglect and abuse things. My '10 Malibu I had that I got an awesome deal on with 8k miles on the clock, was still abused. The rear seat had a broken cup holder, stains in the rear seat that looks like spilled oil, and then it had issues with the electric steering. The final straw was the transmission starting to surge just as it was passing the 36k mile bumper to bumper warranty. Enough was enough.

I decided to get my Mustang to own something new and just like I want it (even the color I picked) for once in my life. So far, I'm enjoying a car that has given me 10k miles of awesome use, has 305hp, 6-speed manual, and gets 27mpg combined. I also like the piece of mind that I know what has happened to it and the fact it has been cared for, washed, and properly maintained. It's going to be my baby and hopefully a good long term investment, considering it's got an easy to work on suspension and drivetrain with lots of parts easily, and cheaply available for down the road maintenance. It's $320/month, which is me overpaying slightly to reduce my payments.

That said, I have a black GTP I'm trying to get set up for my DD. I actually sold my SE to a family member recently cause they were in desperate need of a car. I'd like to keep miles down on the Mustang and not drive it next winter. Having two cars comes in super handy when you do your own mechanic work as well.

After saying all of this... a car payment will rarely be cheaper than maintenance on a car unless you get something super bad and can't work on it yourself. However, cars to me are a hobby and I like to enjoy what I drive, along with it being reliable. To me, that justifies the extra cost until I have other things to think about (family, etc.)