Help a Reader: Time for a New Car?

Here's a question left as a comment here a week or so ago:

Regarding getting a new (or new to you) car, I am considering taking a job that will increase my commute by a great deal. I have a 5 year old car with 113k miles on it that hasn't given me problems, but is on the verge of needing some work done to it. Would I be better off to swap it out for another used car with a much lower mileage total on it or just hold on to it? I don't want to get a fancy new car or even a fancy used car. I just don't want to start racking up so many miles on this one that it becomes a burden to maintain.

I'm sure some of you out there have some advice on this subject. ;-)

Comments

[Colin]

Sell it while it is running good and doesn't have any major defects because once you hit 100k it seems that major repairs are imminent. Holding on to used cars post 100k is a sick game of hot potato and in my experience I'm alway left holding the bill. I'll never own a car with more than 100k on it. Ever.

[gharkness]

Forget the car. Find yourself a job located at or near a rail or bus line. Get a bike, if necessary, to get yourself to the nearest pickup station. Buy a yearly pass and you will save yourself a fortune in gas, wear-and-tear on your car, and wear-and-tear on your nerves. At least investigate these options before you go out and tie yourself to not only years worth of payments (if you can't pay cash), but very high gasoline and maintenance costs.

[robert]

Depends?
Will u pay CASH for the 'new' used car?
Yes then maybe. Most cars can safely run up to 200k miles with reasonable care.
If and that is a big If you stay with the job then move nearer to work .
you will often come out with more money in your pocket.
If you stay with the job Save up for a lower mileage car and PAY CASh for it.

[segfault]

I'd hold on to it and keep up with the maintenance if it's been reliable so far. You know the service history on the car you already own.

[Chris]

Our old volvo has 260,000 miles and the "new" Subaru has 120,00! So I guess I'll never own a car with less than 100k on it :D

Calculate everything out and see what you get.
- Price gab between buying and selling
- Insurance
- Estimated repair bill.
- Gas milage

Figure out how many miles you drive in a month to your new job and then figure how much that is going to cost in a new car vs. your old car if gas is $4 a gallon. Then try $5. You could save a ton if you have a low MPG vehicle and even bring it up a little.

[Aaron]

I'd be inclined to agree with segfault. You say "it's on the verge of needing some work done". Some clarification would be nice on that as it might change my clarification. An oil change? A new timing belt? N new engine?

Personally, I hold on to cars for a LONG time. I got rid of my pickup (S10) last summer that had over 260,000 miles and still ran good. Of course I also take care of my cars. Oil & other fluid (ATF, brake, PS) changes, check air pressure weekly, etc etc.

[Mark]

I agree with segfault. Unless you know the car you have is going to cost x$ to fix, and the cost is higher than the car is worth, then why trade it for something you don't know the history of. I assume there is no additional cost in "swapping" these vehicles?

It doesn't matter how many miles you have on a car, it will die when it gets ready to die. At worst, you can take it to the scrapyard and sell it for the metals and parts.

If you're worried about the car breaking down a lot sooner since you've gotten that new job, I would suggest increasing your cash savings and plan ahead for your next quality used car. It will be a lot less stressful.

[Mark]

Another great idea if your thinking of buying a modest used car...FMF will love this!.......PUT IT ON YOUR CASH REWARDS CARD AND GET THE REBATE !! Assuming it's a "modest" vehicle that's well within your credit limit of course..

[zOrville]

Seems to me unless you can afford to pay cash for a vehicle now, the needed repairs will likely be less than even a year's worth of payments on anything decent. Use that time to save up as much cash as you can, run the first year's commute on your current vehicle then if you are sure you like the new job and such get a different car!

[Thomas]

It seems as though many of the cars I have purchased (or looked at purchasing) seem to need extensive repairs - that was probably why they were being sold. Once I get past that initial hit, they seem to do much better. In many cases (not all, so please don't flame me), 'the cheapest car is the one you already own.'

[NCN]

Find a good mechanic, and get an estimate for what it would cost to keep the car running, in good condition, for another, say, 3 years.

If this is less than the cost of the used car you want, pay the money and keep the car. Then, over the next three years, save for a car that you REALLY want. Make it a priority.

If this is more than the cost of the used car you want, sell the old car, and pay cash (or as much as you can down) and get the newer car.

I have an '01 Accord. I recently put about $600 into it - new tires, new timing belt, all fluids changed - runs like a charm and I'm going to drive it for another 3 to 5 years. The money I saved will go into a 'newer' car fund.
NCN

[Julia]

I'd think twice about that job. Is it going to be worth the extra time you spend commuting in your car? There's also gas, wear & tear, etc.

I'd look into what alternative means of transportation there were, as well as take a hard look at whether the job was worth that.

[Paula]

The money considerations that everyone brought up are great. On a different note, have you ever had a long commute before? Because there is also the wear and tear on yourself! I gave up an hour and half commute because I could never feel like I had enough sleep. It gets really old fast.

[justin]

Hello all! I am the poster who asked the original question. Thanks for all the good advice. I actually decided not to take the other job, based primarily on the fact that I have much better benefits where I am now and that trumped all other considerations. I've commuted before and although this new job is much more what I want to do (and they offer some cash for grad school too), my wife is expecting and changing insurance would add another $2000 to the cost of the delivery, so I'm staying put.

I have decided to keep the car as well, especially since I won't be putting nearly as many miles per week on it. My fear was that driving all those extra miles would accelerate any potential problems that might arise with the vehicle. Thanks again for all the advice and now I can use the cash I save by not commuting to pay down some debt and start saving for the next car! :)

[Beyond Paycheck to Paycheck]

This conversation reminds me of advice I was given long ago with regard to what the best car, financially, was:

"The best car to get is the one you already have."

And that was from a sales district manager of an auto-retailer.

[Kevin]

5 year old car is not that old and in this day 115k miles isn't that much. What's the repair history on the car? If you've had significant work done in the past, it might be worth getting something else. How much is this "work" that's on the horizon going to cost? What would a "new" used car cost in comparison? Also like the comment about keeping this car and looking to move closer to work or to mass transit if that's an option.

[beloml]

[quote]Find yourself a job located at or near a rail or bus line. [/quote]

For millions of people, that would mean moving to a different state.

[justin]

"Find yourself a job located at or near a rail or bus line."

"For millions of people, that would mean moving to a different state."

beloml, you are exactly right. It amazes me how many people don't realize that if you don't live in a major metro area, that there are NO public transportation options whatsoever. I'd love to be able to use light rail or take the bus, but when you live in a rural town of 15k and the closest jobs a lot of times are 40 miles away through the country, there just ain't no bus that goes that way!

(And yes, I know moving is an option...but it is not always a black and white, move or stay question)

[DC Smith]

As someone who has never disposed of a car with less than 100k, I can see Colin's point. At the 100k point you're probably looking at your second (or third) set of tires, timing belt, clutch if it's a manual, first (or second) battery, and you're probably a little soft in the suspension department. You could also be due for a regular brake job and maybe even some non-maintenance items like a starter or alternator. I don't blame people for trading out to avoid those all-at-once costs.

However, once over that hump, in my experience you're pretty well set for another 75k easy. The cost of all of those things combined is still less than a new(er) car, it's just that it comes on in big, random lumps over a year or two instead of a nice, predictable monthly payment.

To eliminate that uncertainty, I have figured that my car expenses are about $100 per paycheck. That includes depreciation, since for planning purposes I assume it will be zero value when I'm done with it.

That $100 "bill" is automatically paid into a dedicated savings account for the purpose by auto transfer every two weeks. The money in the "car account" is used to pay for all maintenance and repairs. Whatever is left over, plus whatever I can get for the old thing when I decide it's time to dispose of it, buys the next car. At that point, adjust assumptions and payment as necessary and start over.

When the money is already in the bank earmarked for "car stuff" instead of coming out of the monthly cash flow or adding to debt, that 100k bump in annual costs doesn't scare me nearly as much as it used to.

[Rick]

Keep the car. 5 years is not old at all. And 113k miles isn't much. Really.

[Megastar]

My car is six years old and has 146,000 miles and I purchased it brand new and it still runs great. I make sure the proper maintenance is done. Just recently, however I took a new job which is quite a drive. Right now I am in the process of relocating closer to my new place of employment because my lease is expiring where I am. May as well move closer and save myself a ton of money in gas.