OT: Making car payments vs making the repairs on a owned car

Also does it make any good since to buy a car for $2,000-$4,000 and never make a repair just maintaining work..then run it into the ground every 12-24 months then buy a new cheap ads car ?

One question that needs to be answered or considered is:

Do you actually like the beater you are considering? Will you actually like the newer, lower mileage car you are considering?

If the answer to either of those is no, then you have your answer.

Generally beaters make more sense to keep running, up to a point. But you have the means not to, it is torture to drive a car that you hate (new or beater). If the beater is a pickup truck at the newer car is a Ford Festiva .. I'd probably do the beater truck. But if the beater something terrible like a used minivan and the newish car is something decent, I would go for the newish car with less headaches and predictible maintenance.

If you going newer ... read the manufacturers maintenance schedule, and stick to it and get this inspected and/or replaced when wore out. With today's cars penny pinching on maintenance is what kills them .. that and salt/rust up north. Part of getting a newer car (~50k and 3-5 years old) is you know the maintenance history, or you can be somewhat sure it hasn't yet been neglected.

A big red flag is: this car has been great. I'd literally done nothing to it except put gas in it, change the oil, and change the tires. Big red flag. (to me, at least).

The best beater on Craig's List is a car being sold by a millionaire / rich person who doesn't need it anymore and doesn't need the money. This person isn't looking for top dollar, probably had someone competent do ALL OF the SCHEDULED maintenance inspections, and replaced things ON TIME where things broke or wore out.

See the old days of "tune ups" and grease monkeys and cars only good to 100k miles are a thing of the past. Today's computer controlled cars will last for a very long time if the maintenance schedule & inspections are followed. My $0.02.

I'd never advise not doing major maintenance. Now if a car needed a new crate engine (the whole engine) or it needed a full transmissions service, and I was not in love with the car, it would be time for new wheels, sure.

With a beat, IMO and IME, you either need to be able to fix it (mostly) yourself, or have a good trusted shop on the cheap that does decent work. Plus you need a "guy" who just "has a business card" who fixes things on the side. These guys are lifesavers to things that are tedious or a PITA to do without lots of exp, tools, patience, a second set up hands, etc. Sometimes $40 + parts (from a junk yeard) to that guy will save my whole weekend, literally.

It's a time-value-money question. In raw dollars though the beater wins almost every time, unless you have a long commute or you can just bill extra time (like a doctor or lawyer can). Those guys should buy newer everytime, because the time saved can be funneled into billable hours (for the most part).

I still stand by the statement, that if you go beater, you should buy a beater that you like and one that is easily services (no Chyslers, unless it's a Viper, or a something with a Hemi V-8 in it, or a RAM truck, for example).

It also makes sense sometimes to have 2 cars. One daily driver, and one utility vehicle or toy. A beater truck is nice (120K -140K mi) is you only need it 3-4K mi a year while something else gets you to work. Plus the truck or the toy can be used in a pinch when your daily driver is down for maintenance, etc. Because if you only put 3-4K mi on it a year, a 140K truck will last a long time before it dies, versus something you put 12K mi a year on driving back and forth to work.

Also for trips, I recommend renting a car. The maintenance costs work out in the end in favor of a rental for trips (I learned this the hard way).

Peace and God bless.

Let me preface this with this I have no experience with used cars at all I have only brought new vehicles over my adult life. I am a big believer in not buying someone else's problem I usually keep a car for 250,000+ miles by the time the depriciation kicks in I have driven a good running well maintained vehicle well past the last payment generally 8 years or more. Nowadays usually you can get a great low or no interest deal for 4-5 years that means no need to give up cash that is making money for me plus the added benefit of paying with cheaper dollars as the cost of money rises. I firmly believe in the adage that the dollar in my hand is worth more than a dollar promised at some future date.

If you buy a new car you need to be prepared to run it until it falls apart.(that is the only way the cost benefit analysis comes even close to evening out) My F150 has 175,000miles and is 6 years old I plan to keep it until 250,000+-. Once the body mounts start to loosen up the repairs become not cost effective and I turn it into a beater.

Thank you guys so much for the information I will post how I used to do things and how I'm wondering how to do things since I'm better with my cash..not rich but I'm solid.

Just wanting to make sure I'm getting my money's worth

my car history is to get a car and buy it for $5,000 avg. Usual takes me 12-18 months to finish loan..then maybe 6-12 of no loans before I get next car..usually only do cheap work to keep car going and as soon a major fix needs I'm back in payment...by that math I'm going 2 years on avg on $2,500 avg give or take...

I'm now questions to myself about $5,000 and run it into the ground with no working on it...then at loan pay off just get another one...making my year avg since it would probably take 18 months of loan payments...avg maybe $3,500 every year if the math is close I think...is this to much ? Or fine ?

So basically I've been averaging high $2,000- low $3,000 per year

Can I lower this ? Am I spending to much or am I doing better than I understand ?

Why not get a vehicle in the 20-25 thousand dollar range twentyfive thousand over 5 years is less than five hundred a month keep it well maintained at the end of the loan you still have a fairly late model vehicle that you should be able to get anothe 4-5 years out of and have no payments for a while.

^^ If you keep the new vehicle 10 years it costs you less than 3500 per year + upkeep which you still have no matter what you decide to do.

twentyfive --> "I am a big believer in not buying someone else's problem I usually keep a car for 250,000+ miles"

^^^ This. If you buy a used car. You need to be certain it was MAINTAINED.

I've recently traded in an got a 2 yo CPO car (I couldn't swing a new one that this was far less than new, had manual transmission, etc) and all of the service records. I'm going to maintain it and drive it for 250,000 mi like twenty five suggests. I also did a 48 month loan (I refused to do longer, otherwise I might have gone new). All of the factory warranty transfers as it was a CPO with verified maintenance at the dealer.

The first owner probably took a bath on trading it in, so like the guys above say, the costs only really work out if you drive it for a while and keep up on the maintenance.

For me the car + beater truck is cheaper than newer SUV or newer truck by itself, and I get 2 vehicles. There was just no way I could swing a newish or newer truck purchase wise, some day that will change.

This is the first time I've bought a car that was newer than 5-18 years old. So it's a leap for me. :)

Subaru makes AWD cars and the price isn't bad, if you need AWD. Sometimes people think you need truck or SUV to get 4WD. I just throw that out there. They also make hatchbacks (imprezza) and stick shifts, if you want a manual.

You might message justme62. I think he has an older Ford. So you might be able to get his opinion, too.

USUALLY monthly payments have been $250-$300 over 12-18 months

I drive 10,000 miles a year give or take going to work, home, casino, follies and so on.

I really kill cars in general

Since I've got cash I'm almost wanting to go with less headaches and just buying a new car in the $3,000-$6,000 range to last only 18 months than switch up...doing no repairs or maintenance to them. Just str8 run that bitch into the dirt

Is this being to caress with my cash ?

Seriously though...not wise some times and I'm learning as I go...I've lived the majority of my life broke as fuck

Now that I have some change...I'm wanting to do well with it

Thanks for ever one helping me trouble shoot this

Juice, it depends on how many miles you drive per year, too. Usually if you drive in the 10K-15K per year that most do, something newer can make more sense.

When you drive less than 8K a year, or even a lot less, the beaters can start to make more sense (since it takes a lot longer to get to 250,000 mi). But also, I wouldn't discount a new car either. Because a new/newish car will last a LONG time with less than 8K mi a year. And If I'm going to be in a car for 10+ years, I'd rather it be one I like, and one I've done and know the maintenance history one.

Like the calculations others did above, new cars can work out well (total dollars per year) if you drive them for a long time. (and if you following the mfg maintenance schedule).

@Dominic I don't dispute what you said I just don't trust anybody reselling a car as a third party it isn't in their best interest to give you the truth. I know that there are ways of looking up the past history but they aren't foolproof so unless you are an experienced auto mechanic which I am not my way is the best way for me all I did was lay out my strategy and rationale If another way works for someone else great otherwise I have different perspective.

Lots of good information guys

Big question is this

Since I've got cash I'm almost wanting to go with less headaches and just buying a new car in the $3,000-$6,000 range to last only 18 months than switch up...doing no repairs or maintenance to them. Just str8 run that bitch into the dirt

Is this being to caress with my cash ?

Seriously though...not wise some times and I'm learning as I go...I've lived the majority of my life broke as fuck

Now that I have some change...I'm wanting to do well with it

Whatever works @juice think long term it is a good strategy in everything even poker.

I hear you. So far I could never swing the price of a new car, so I had to make do. Since I'm a maintenance freak, I'd love get a new car. In my case, the car was almost half the price of new and only 2 years old. So I gambled. Someday I will buy new. Progress. One step forward each day. I'm putting $ away for a down payment on the next one already. Either a new Imprezza, WRX, or a pickup truck.

I know you can't REALLY be certain when buying used, even with car fax.

PROTIP: you can bribe the porter at the dealer's carwash to give you a gallon of their upholstery shampoo, if you bring a container. It makes your car smell like new car scent when use it in your rug shampooer! I've been doing that since I was a teenager.

I agree with you 25...not this year but 2018 I may actually spring for a car a year old used then take good care of it....playing with ideas right now....means a lot guys for the off topic help

My best advice would be to spend between 5,000 and 10,000 and you can find a decent used car. Hopefully you still have the contact from the guy that fixed your car last time, use him as your mechanic and if you don't drive too much you should be able to keep that car for several years (4+ years). There are a lot of decent cars out there for $8,000.

Buy new and run them forever. I bought an 02 wrx wagon for 24 and change. I ran it from 10/02 - 09/15 to the tune of 247,000 miles and then bought another one, which I will run the same way. Hate the idea of driving a shitbox and we have great roads here to drive.

Good idea Shaylynn...by your advice I must be doing something wrong though

You say to make a $5,000 last 4-5 years and at best I can only get them to last 2-3 years

I've never owned a car more than $6,000 or under $4,000 mainly at those no credit no interest dealership

It's always been my view that buying a used car is just buying someone else's problems. I like to buy new and then drive it until it becomes more trouble than it's worth. Car loans can be had at such low interest rates that it makes little sense to pay cash.

I can generally get 10 good years with minimal repairs out of a good foreign SUV and plenty of people do the same with good Honda or Toyota sedans. It's all about keeping up with the routine maintenance. You should be able to get over 200k relatively stress free miles out of a good Honda or Toyota and several years without car payments or serious repairs after the first 4 years. My current SUV is 8 years old and has over 170k miles and the worst repair I've had was a radiator, which cost about $300 to replace. Unless I have a serious problem with the car, I'll probably keep driving it until I'm finished paying off my wife's car. Rinse, repeat.

Sounds nice but I've actually got horrific credit

I went through the same shit years ago before I got my credit in order. If you can put 3 or 4 grand down then you don't need good credit to finance a car. You'll pay a higher interest rate, but the dealership will find someone to finance you. Seriously dude, you could probably put yourself in a new Toyota Corrola for $300 per month with a decent down payment, even at a higher interest rate.

That's actually really cool advice I had no clue was available to me.

I'm getting to a spot to get my credit in order..soon we'll be doing a bank credit card with some of my own money up to get into one..gotta start at the bottom and build up.

A car like this would help as well...nice to know that 4K would get me in a new car

Don't go cheap. Get a BMW.

cdn.bmwblog.com

Car loans are just about the easiest loans to get because they are secured by the car. I have no doubt that there is a Honda, Toyota or Nissan dealership in your area advertising that they can finance anyone. They are also a great way of rebuilding credit.

Anyway, I'll leave it there and good luck.

Thanks Rick

Jack LMFAO

Bimmers are cool, I'll let you have the BMW I almost bought years ago, a classic 914. Don't mind all the rust underneath.

Lol

Juice, only getting 2 years out of a $5000 car is no good. These are not good cars then. Maybe they are unreliable models or maybe they are just not maintained well.

If this was '96 when Shailynn and I graduated H.S. then $5-6K would buy an OK used car. I don't think this does it in today's used car market (cars running longer, people's budget's stretched, people keeping cars longer, etc). Plus a lot of the people that DO maintain them, are going what 25, TT, rick, and me all do. We basically keep them until they die or become basket cases. So these well maintained cars are not put back on the market.

The $8K range ($7-10K) is going to give me a much better used car, with maybe 1-3 prior owners. Also expect a poorly maintenance car to probably need A LOT of work at 170-180K mi mark. Maybe that radiator was replaced. But was the timing belt, water pump, thermostat .. + anything else attached to the belt or was anything else near service replacement also checked and replaced? Sometimes you can save labor and time repairing other items that are nearly worn out when the car is apart. If a radiator is replaced at 170K, but the water pump, belt, etc only have 10K mi left on them, you might as well do all of them. That's the mentality you need when I say a WELL MAINTAINED car. People go cheap there, and you just inherit headaches. Why pay for labor twice and fuilds twice, if already have it apart. See what I mean?

Ditto when you do the brakes. Check the other brake hardware and check the wheel bearings, etc. When things are already apart. If something else is getting worn out, do it then. If not, just check on it every 15K, 30K, mi that the maintenance schedule says you should. But don't replace stuff needlessly. That will just make you broke faster and not give you a more reliable car.

If you can't spot this yourself (I"ve learned to out of necessity) then find a guy locally, you does good cheap work, and you can trust to not BS you.

Ideally you would aim for $16K. This would buy you a Toyota Corolla or similar what you could run, with predictable maintenance, on schedule, for a very long time. But $8K like Shailynn said gives you a better pool of cars. I could compare $5K today to the cars we used to buy for $1200 20 years ago. It's a car that's 2 years and one major repair away from the junk yard. And since there aren't a lot of decent cars in the $1-2K range these days, it's not $5K. I would compare a $1-2K car today to something I bought for $100-200 23 years ago.

With car loans, sometimes it gets hard to get a loan for something over 100K mi, too. A lot of banks and credit unions won't do it. I bought a 5 year old honda accord for $9k in '04, with 63K mi, drove it for 7 years and sold it to someone with 275,000 mi on it in 2011 and he was happy to get it. I wanted to switch to a SUV, which I did. I also hated that it was an automatic transmission. Maintenance costs and repairs were very low and very predictable. Only the radiator and emissions charcoal canister failed ($150 part, repaired myself) prematurely, due to road salt / rust. Brake caliper (like $90 item, repair myself) and one point a windshield chip. I did everything else on the maintenance schedule. Which is why I think the next guy really wanted to buy it.

With horrific credit, I would stick with shorter loans, like 4 years. That is what I do. My credit is bad, too, because sometimes I slow pay things as I have lean months or months where I run short of money. I'd bring at least $1K down payment, and pay the sales tax (8% of $8000, so tax is about $640?) and doc fee ($300). So if you can walk in with $1940 cash (1000+640+300), that helps with the loan % you get. Every little bit helps.

I think you might get 7 years out of a sub 100K mi car for $8K (ish). Loan for 4 years, then 3 years without payments to help cover extra maintenance items you need to replace on schedule or wear plus lets you save the down payment for the next car.

You buy a new car, it looks good for a few years, because it is the new style.

You fix up an old car, you've got something which will continue to look better each year, because they don't make em that way anymore.

SJG

Juice, rick is right. A lot of dealers can run your credit through a lot of banks. I've seen Ally Bank finance a lot of people with credit scores in the 500s and 600s no problem. You might also check through your insurance agent. I have the best luck through them as they hook me up with a bank at a lower rate than the dealer does. But the dealer comes close.

WTF dude?

You are spending all kinds of jack on poker games and in strip clubs and you can't afford a car more than $3,000 to $6,000?

Seriously dude, you have issues... like cheap issues...

I bought a very reliable car in late 2001 and it still runs good just doing routine maintenance and a few repairs averaging about 10k miles a year. If repairs avg were 700 a year for the last 7 years, maybe 500 a year for maintenance and repairs the prior 5 years , and maybe 75 a year average the first 4 years, that's 27000-3600 or 24000/16= 1500 a year in depreciation costs and 754 plus 5500 plus 7*700 or 300+2500+4900 or 7700 just estimating over 16 years or avg or roughly 490 per year or a total of 490+1500 or $1990 per year in depreciation and maintenance per year, not including gas over the life of the car I bought.

I like to factor all costs into a decision about what car to own. You can buy a bad new or almost new car or a great old car or visa versa. My prior car was #2 on a list of worst reliable cars in the US and I blew a ton of money on repairs to keep it running. I think I spent an extra 5000 per year the last 3 years I owned it just for maintenance repairs.

Estimated cost of prior car 25000/8 years - 5500 sell price or roughly 2440 per year depreciation First 3 year routine maintenance 75*3. Or 225 Next 2 years 2000 * 2 or 4000 Next 3 years. 5000 * 3 or 15000 or roughly 20000/8 = 2500 a year So that car cost roughly 5k a year in depreciation and repairs. If it wasn't fun to drive and looked fantastic, I would be regretting wasting so much money.

I had several people ask to drive the prior car. I even let 3 dancers drive it for a minute. I should have asked for something in return. No one ever asked to drive my current car. I also had several people want to street race my prior car. My prior car reminds me of a high maintenance stripper. Something else to think about.

Dominic thank you man for really go all out in this thread you have given me lots of good things to consider

Shark I'm the same but I'm just now learning all the variables to calculate in and your comments have given me these tools to start using as I gather my information to take the best gamble I can with my vehicles.

Warhaek lol you comment cracked me up...some explaining for myself is I'm just now in life living financially deep as in personal savings and a job with that gives me 3 times the income I'm used to having lol...I'm like a cave man right now sent the future trying to figure it all out and just doing what worked when I was broke as fuck lol

Now because of poker I have developed a very analytical brain and analysis of all life choices the way I would play a poker hand

I've learned to compile intelligent 's and gamble or make moves best on optimal theory

An idea I google gave me a calculator to add in variables to measure out how valuable a car is to me in relation to my income..I was told as long as I spent at or less than 15% of my after tax net income per year I was doing well with my expense with transportation

I'm mature alot and grown a bunch since I first joined tuscl 6 years ago.

Thank you to every one that has helped make this thread so rich in helpful information

Yep

Oh, and IMHO you should never take a loan out for a used car unless the car has very low mileage. Either finance a new car or get the best car you can afford for cash. I've seen way too many people fall into the trap of having to make serious repairs on a used car while still making payments on that car. When that happens, it takes the term "money pit" to whole new level.

Keep in mind that owning your own car probably only going to be a thing for 5 to 10 more years. Also self driving cars will likely be mandate during the end of that time frame, so going too nuts on a new car might not be the thing to do. Unless you want to get a Tesla.

Juice, if you got the time here is the best value in finding a good vehicle. Troll the retirement homes or age 55+ communities for adds selling their vehicles. My immediate family members develop relationships with elderly people who have their last car they will own and drive maybe 5,000 miles each year. When they are too old to drive you pick them up and basically you have a nearly new driving automobile at a huge discount.

The other option is troll the advertising for 2-3 year old vehicles that still have a few months warranty on them. That way you can figure out if any repairs will need to be covered.

I've done both of the above options, and the first one is by far less expensive but you get a good car that lasts, except your birches won't be impressed. The second option is more expensive but you can be somewhat impressive. The old cars always will win out in value.

Thanks man...I have been schooled well ...tuscl should add a car shop talk section LMFAO

So my 2005 Saturn is paid for...I've been out of payments for 4 months now...I've had the car just shy of 18 months... it's 20,000 miles away from 200,000...is it worth sinking $3,000-$6,000 into repairs ? Would the car be like brand new at this point ? Or is it a waist of cash with mileage this high ?

I will be loaning myself the money from my 401K so I will pay myself back in the next 12 months plus I'm still able to contribute 20% each paycheck

I'm I doing this OK ?

Or

Am I fucking this up some how ?

Or should I just use that 3,000-$6,000 to get into a bran new car ?

Ooops ...lol...sorry guys I had to bump it to hit 50...OCD

Serious question above

My opinion Juice is think long term.

I am...this thread has helped me see this

Is this the car with the exhaust leak? Is it the V6 model or the I4 engine? I ask because the V6 Saturns of this time period were notorious for transmission problems (parts inside are thin / brittle --> and if the fluid overheats, the parts prematurely wear requiring a transmission rebuild .. often every 75K miles). Were there already a bunch of new parts on the car when you bought it? Basically if the prior owner didn't already offset some of these repairs just before he/she sold it to you, you're gonna be on the hook for them soon.

Radiator, alternator, transmission, exhaust. Exhaust is a wear item, in my mind at the 10 yr mark. Check the belts and hoses. If those are still new, it's likely the prior owners didn't change much. It might be worth the $200 to have a mechanic look over the car for you "as if you were going to buy it today." He or she can give you a run down of the shape and what's likely to go in the next year or two. Do an engine compression test. Look at the CV boots.

You need to know how likely this car is to last long term. Some cars can make it to 250,000. Do you or your mechanic really this this Saturn is a car that will?

I think if you put this car up for sale. The only people looking to buy it will be the dregs of society. Think about it. And they will likely maintain it with cheap under the table labor and junkyard / savage parts. I would, if I were in their shoes. Is this the car you want?

I'd get something else, it is was me. Something with a reliable foundation. And follow the maintenance schedule.

^^If the belts and hoses are still original and not new. Typo^^

If you do keep this car long term. It's not the hard knock life. It's the junk yard life. (now I have that song from Anne in my head). Meaning get used to going to the junk yard every couple months for parts to put on this car.

If you plan on paying full retail prices at a garage to fix things. I would not.

I'd spend a couple days car shopping. Have some fun with it and see what's out there in your price range. have some fun with it.

Really good tips bro

Lol