Long post about auto dilemma if anyone feels like dispensing advice

smilelari · October 2010

I don't like spending money on cars. To me, it just doesn't make that much sense (financially) to pour a bunch of money into a car payment considering how quickly value decreases. I drive a 1995 Pontiac Sunfire. I've driven the same car since 1998 and it's been paid for since 2003. DH drives a 2001 Jeep Cherokee and has driven it since 2004. It's been paid off since 2009. So, we've had a good year with no car payments.

Last week we took my car into the shop for a minor issue. My left turn signal wasn't working and the tail light was out. The problem wasn't the bulbs. Turns out it was blowing fuses. Problem fixed for a reasonable $143 (including an oil change). This is the first non-routine visit we've had to the mechanic in over a year. When they did the courtesy check, they found $1800 worth of crap that "needs to be fixed".

Here's where we start to have issues. Neither DH or I are really car people. We don't know if this is the beginning of the end for this car and we should start shopping, if we should continue to drive it and do nothing or if we should invest the $1800 in repairs.

I asked around a little and it sounds like the issues aren't dangerous and I can safely drive the car until it starts showing symptoms of the diagnosed issues. That's what my gut tells me to do. Then, I would have the repairs done. $1800 every couple years really isn't that much to spend on a car. But, DH is much less of a "drive it into the ground" kind of guy and it feels like he wants to start shopping. If we start shopping I have no idea what to shop for. It seems like used car prices have gone up enough that it might be smart to buy new instead.

We could technically afford a car payment, but we're trying to save a down payment for the next house and it would certainly hurt our goals.

So I'm not sure if I should:
1. Do nothing
2. Have the car repaired
3. Shop for a new car
4. Shop for a new-to-me used car

LilMissSunshine · October 2010

I would have these repairs made and if things start to deteriorate again from there, i would start shopping around. If you really didn't want to have the repairs made, I would go with #4.

I was recently in the same position as you. My car has been great, but had to have some non-standard stuff done that added up a bit. We decided that if things really started to go after we got the other stuff repaired, we would start to think about buying a used car.

Jen1231 · October 2010

In your situation I would probably keep the car that I have now and get it fixed. Since you said you were trying to save for a down payment on a new house. Once you find a house you like and get comfortable with the bills then maybe start looking for a new car. That's what I would do.

Culkinator54 · October 2010

I'm not sure where you took your car, but my brother (who is a certified mechanic for a Chrylser dealer) says that 99% of the things they put on those sheets after a courtesy check are really unnecessary to get done right away. When my vehicle was 5 months old, I took it in for an oil change, and they said I needed new brakes. I was freaked! I had my brother look at it, and he said I had another 10,000 miles to go before I even needed to think about it.

I'm a drive the car to the ground kind of person, so I'd wait and keep driving it. However, you are correct in saying it's almost just as good to buy new these days. There are a ton of incentives to buy new instead of used, and in the long run, it really can be a better deal.

kcisthebombdotcom · October 2010

When they did the "courtesy check", I'm sure they gave you a printout of what specifically they found wrong with the car. I'd price shop those issues to other mechanics, and ask around to friends/family that are more car saavy to see if those are issues that truly need to be fixed.

If I found there was some validity to the claim the first mechanic made and it was a fair price for those repairs, I would pay the $1800. That's not a whole lot of money.

emiliemadison · October 2010

4. But a "new to you" used car

Your current vehicle is only worth about $900. If you have to spend more in one repair than the car is worth, it's time to get a new car.

If you're willing to shell out $1800 every year or so in repairs (and you WILL, based on your current make/model/age), then why not find a decent used car for about $6K? The payments over 3 years would only be around $170/month, so that's approx what you'd be spending in repairs for the next few years anyway.

Obviously, you should get a 2nd (and even 3rd) opinion on the repairs. But your car probably wont last much longer without needing more and more repairs, so needing a newer car is inevitable, and spending more in repairs than the value of a car is unwise.

nmc29 · October 2010

It would really depend on what it was.

I would get a second opinion on what needed to be done before I did it. Like PP said, sometimes they just tell you that to freak you out and get you to spend money when you really have quite a bit of time left.

I would make the repairs though, but I've driven both my cars into the ground and DH is the same (his Jeep has almost 200,000 miles on it and still going).

avbliss · October 2010

I would ask a relative whos a car person to take a look. Every car has a bunch of stuff that can be fixed. If you don't have a person you trust to be honest with you then I would look for a new to you used car. I would NEVER buy a new one. Start putting $ away for it so you can pay cash. DH and I did the Dave Ramsey car plan, buy a cheep used one, save up for an upgrade, then buy better, sell the old one to start your next upgrade fund. DH drove a 89 Astro Van for a year, and we sold it for almost what we paid for it, and he got a really nice Buick thats a 98. Now were saving to get a 2002 car for him. I had a 91 tempo, upgraded to a 99 Town and Country and am saving for a 08 Caravan. Drive yours while you save up for the better used car.

sgrl · October 2010

What kind of issues are they? Are they serious/safety things?

I don't really know what to answer but I just wanted to say that I think you guys are SO SMART for driving older, paid-off cars!

Ivana_Stolichnaya · October 2010

You mentioned:

So I'm not sure if I should:
1. Do nothing
2. Have the car repaired
3. Shop for a new car
4. Shop for a new-to-me used car

I say none of the above...I would take it to another shop for a 2nd opinion. Mechanics are really good about finding things that just have to be repaired. MAke sure your husband goes with you, women tend to be taken advantage of at car shops.

I took my car to Sears for an oil change. They didn't change the oil or replace the oil filter. I was charged for them to re-park my car! One month later my dad looks under the hood. The oil was dirty and the oil filter was the same one that my dad put in a year earlier...he writes the date on the filters to keep track. Guess what, the date was still on it.

I was pissed! The manager got an ear-full from me I tore him a new one.

emmared1986 · October 2010

emiliemadison:

4. But a "new to you" used car

Your current vehicle is only worth about $900. If you have to spend more in one repair than the car is worth, it's time to get a new car.

If you're willing to shell out $1800 every year or so in repairs (and you WILL, based on your current make/model/age), then why not find a decent used car for about $6K? The payments over 3 years would only be around $170/month, so that's approx what you'd be spending in repairs for the next few years anyway.

Obviously, you should get a 2nd (and even 3rd) opinion on the repairs. But your car probably wont last much longer without needing more and more repairs, so needing a newer car is inevitable, and spending more in repairs than the value of a car is unwise.

This! Ms.Emilie is very wise.

smilelari · October 2010

sgrl:
What kind of issues are they? Are they serious/safety things?

I don't really know what to answer but I just wanted to say that I think you guys are SO SMART for driving older, paid-off cars!

Now I wish I had the printout with me. Issues are (as I remember them):

Head gasket leak ($1030)

Some sort of power steering/pinion something leak ($800)

Based on what I've heard from friends "in the know" the price for the head gasket repair is good, but I should shop around for a better price on the power steering problem.

Sounds like 2nd opinion might be the road to take.

smilelari · October 2010

emmared1986:
emiliemadison:

4. But a "new to you" used car

Your current vehicle is only worth about $900. If you have to spend more in one repair than the car is worth, it's time to get a new car.

If you're willing to shell out $1800 every year or so in repairs (and you WILL, based on your current make/model/age), then why not find a decent used car for about $6K? The payments over 3 years would only be around $170/month, so that's approx what you'd be spending in repairs for the next few years anyway.

Obviously, you should get a 2nd (and even 3rd) opinion on the repairs. But your car probably wont last much longer without needing more and more repairs, so needing a newer car is inevitable, and spending more in repairs than the value of a car is unwise.

This! Ms.Emilie is very wise.

Except that my definite tipping point is when the cost of repairs exceeds the cost of owning a new car, not when repairs exceeds what the car is worth. So, if I can get a new car that costs $900 per year (including the increase in insurance, title, fees, etc) I'd definitely go for it. Not likely.

And my car is only worth about $700. It has unrepaired body damage from an accident I had in 2004.

ETA: The reason it's even a dilemma is that DH's tipping point isn't the same.

emiliemadison · October 2010

smilelari:
sgrl:
What kind of issues are they? Are they serious/safety things?

I don't really know what to answer but I just wanted to say that I think you guys are SO SMART for driving older, paid-off cars!
Now I wish I had the printout with me. Issues are (as I remember them):

Head gasket leak ($1030)

Some sort of power steering/pinion something leak ($800)

Based on what I've heard from friends "in the know" the price for the head gasket repair is good, but I should shop around for a better price on the power steering problem.

Sounds like 2nd opinion might be the road to take.

Assuming these need to be done, which again, based on the age of your car probably do, then you will likely get quotes for roughly similar prices. And these are issues that NEED to be fixed. If your head gasket blows, you are looking at more than $1K. Power steering is also vital to the functioning of your car. And these will not be the last repairs. Once you start fixing the big stuff, it's like a domino effect and one repair leads to another.

Just fixing ONE of these issues would mean spending equal to or more than what your car is worth.

See if you can trade it in (you might get $600 or so) towards a newer vehicle. I'd suggest looking for an import like Hyundai, Nissan or Honda. I bet you can find a 2001 or newer with moderate mileage for $7K or less.

smilelari · October 2010

emiliemadison:
smilelari:
sgrl:
What kind of issues are they? Are they serious/safety things?

I don't really know what to answer but I just wanted to say that I think you guys are SO SMART for driving older, paid-off cars!
Now I wish I had the printout with me. Issues are (as I remember them):

Head gasket leak ($1030)

Some sort of power steering/pinion something leak ($800)

Based on what I've heard from friends "in the know" the price for the head gasket repair is good, but I should shop around for a better price on the power steering problem.

Sounds like 2nd opinion might be the road to take.
Assuming these need to be done, which again, based on the age of your car probably do, then you will likely get quotes for roughly similar prices. And these are issues that NEED to be fixed. If your head gasket blows, you are looking at more than $1K. Power steering is also vital to the functioning of your car. And these will not be the last repairs. Once you start fixing the big stuff, it's like a domino effect and one repair leads to another.
Just fixing ONE of these issues would mean spending equal to or more than what your car is worth.
See if you can trade it in (you might get $600 or so) towards a newer vehicle. I'd suggest looking for an import like Hyundai, Nissan or Honda. I bet you can find a 2001 or newer with moderate mileage for $7K or less.

I'm not very sure why it matters that the cost of repairs exceeds the cars value.

ETA: Although I suppose I could take $900 and buy an exact duplicate of this car instead of doing the repairs. I suppose I could see that. But, I assume that if I bought an exact duplicate I'd have similar problems.

smilelari · October 2010

Now I'm wondering if I could get a car for $1800 that wouldn't need about $1800 worth of repairs every 1.5 years or so, LOL. Then I could skip the costs associated with financing (like having to have comprehensive insurance).

emiliemadison · October 2010

smilelari:
emiliemadison:
smilelari:
sgrl:
What kind of issues are they? Are they serious/safety things?

I don't really know what to answer but I just wanted to say that I think you guys are SO SMART for driving older, paid-off cars!
Now I wish I had the printout with me. Issues are (as I remember them):

Head gasket leak ($1030)

Some sort of power steering/pinion something leak ($800)

Based on what I've heard from friends "in the know" the price for the head gasket repair is good, but I should shop around for a better price on the power steering problem.

Sounds like 2nd opinion might be the road to take.
Assuming these need to be done, which again, based on the age of your car probably do, then you will likely get quotes for roughly similar prices. And these are issues that NEED to be fixed. If your head gasket blows, you are looking at more than $1K. Power steering is also vital to the functioning of your car. And these will not be the last repairs. Once you start fixing the big stuff, it's like a domino effect and one repair leads to another.
Just fixing ONE of these issues would mean spending equal to or more than what your car is worth.
See if you can trade it in (you might get $600 or so) towards a newer vehicle. I'd suggest looking for an import like Hyundai, Nissan or Honda. I bet you can find a 2001 or newer with moderate mileage for $7K or less.
I'm not very sure why it matters that the cost of repairs exceeds the cars value.
ETA: Although I suppose I could take $900 and buy an exact duplicate of this car instead of doing the repairs. I suppose I could see that. But, I assume that if I bought an exact duplicate I'd have similar problems.

My point is that if you want to spend about $1K/year on a car, why spend it on a car that isnt likely to last much longer, even with the repairs? You can spend the money on this car in repairs and prolong it's life by a few years, or you can get rid of it and spend the money on another car that will last you much longer.

Just for the sake of examples, lets say your current car will need $1000/year in repairs for the next 3 years until it dies it's final death. After that, you'll have to buy another car. Lets say you will spend $6K on a new car. In this case, you'd be spending $3K for this car and an additional $6K for another car.

Or, you trade in your current car for (ex:)$500 now and get a loan for $6K. The loan will cost you about $165/month for 3 years but after that you'll be free and clear and since it will be a newer car it probably wont need $900 in repairs a year within the next 6 years.

So instead of paying for 3 years of repairs and THEN 3 years of a car payment (again, just assuming you get a 36 month loan), you'll just be paying for 3 years.

smilelari · October 2010

emiliemadison:
smilelari:
emiliemadison:
smilelari:
sgrl:
What kind of issues are they? Are they serious/safety things?

I don't really know what to answer but I just wanted to say that I think you guys are SO SMART for driving older, paid-off cars!
Now I wish I had the printout with me. Issues are (as I remember them):

Head gasket leak ($1030)

Some sort of power steering/pinion something leak ($800)

Based on what I've heard from friends "in the know" the price for the head gasket repair is good, but I should shop around for a better price on the power steering problem.

Sounds like 2nd opinion might be the road to take.
Assuming these need to be done, which again, based on the age of your car probably do, then you will likely get quotes for roughly similar prices. And these are issues that NEED to be fixed. If your head gasket blows, you are looking at more than $1K. Power steering is also vital to the functioning of your car. And these will not be the last repairs. Once you start fixing the big stuff, it's like a domino effect and one repair leads to another.
Just fixing ONE of these issues would mean spending equal to or more than what your car is worth.
See if you can trade it in (you might get $600 or so) towards a newer vehicle. I'd suggest looking for an import like Hyundai, Nissan or Honda. I bet you can find a 2001 or newer with moderate mileage for $7K or less.
I'm not very sure why it matters that the cost of repairs exceeds the cars value.
ETA: Although I suppose I could take $900 and buy an exact duplicate of this car instead of doing the repairs. I suppose I could see that. But, I assume that if I bought an exact duplicate I'd have similar problems.
My point is that if you want to spend about $1K/year on a car, why spend it on a car that isnt likely to last much longer, even with the repairs? You can spend the money on this car in repairs and prolong it's life by a few years, or you can get rid of it and spend the money on another car that will last you much longer.
Just for the sake of examples, lets say your current car will need $1000/year in repairs for the next 3 years until it dies it's final death. After that, you'll have to buy another car. Lets say you will spend $6K on a new car. In this case, you'd be spending $3K for this car and an additional $6K for another car.
Or, you trade in your current car for (ex:)$500 now and get a loan for $6K. The loan will cost you about $165/month for 3 years but after that you'll be free and clear and since it will be a newer car it probably wont need $900 in repairs a year within the next 6 years.
So instead of paying for 3 years of repairs and THEN 3 years of a car payment (again, just assuming you get a 36 month loan), you'll just be paying for 3 years.

I see your point. Thanks for the advice

mrs_sherod · October 2010

How many miles do you have on the car?

smilelari · October 2010

mrs_sherod:
How many miles do you have on the car?

120K - Actually pretty low for a 15 year old car

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