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Trade-in or Run Till the Wheels Fall Off?

  • believer
    I'm giving serious thought to trading in my ride on a new USED vehicle. I refuse to take the depreciation hit on a new car.

    I only have about $500 of negative equity in my existing car loan which isn't too bad compared to some folks.

    My existing car has about 85,000 miles on it but runs fine. It needs a new air conditioner compressor which could set me back about a grand with parts and labor but Kelly Blue Book value on this car is only $4,500.

    I have to admit that I'm bored with my car and feel the call to "invest" in a new set of problems.

    So do I trade, fix the A/C compressor, or just roll the windows down and run the SOB till the wheels fall off? :D
  • Woollums9
    Roll down the windows and run the SOB into the ground
  • BR1986FB
    Woollums9 wrote: Roll down the windows and run the SOB into the ground
    +1
  • ytownfootball
    203K with no a/c for me...run the thing into the dirt.

    Being bored with your ride is not an excuse for fiscal irresposibility. Wait 'till the majority of states are "your color" before you go boosting the economy. ;)
  • tuskytuffguy
    I have a 1993 Ford Ranger with over 200,000 miles on it. Yep, you bet I'm running it till it dies. Rangers are one of the longest-lasting vehicles out there, tis why ya see so many older ones still on the road. Last forever, with minimal breakdowns.
  • se-alum
    Get ya a new ride man. Debt isn't fiscal irresponsibility.
  • believer
    se-alum wrote: Get ya a new ride man. Debt isn't fiscal irresponsibility.
    Banks must love you! lol
  • slingshot4ever
    I plan to have mine till it dies to get my monies worth.
  • Con_Alma
    I have the means to purchase a car yearly if I chose. It's a bad decision.

    I don't believe in auto loans. We own two cars. They are five years apart. One* gets replaced every five years. At that point it will be 10 years old and have at least 200,000 miles on it.

    Bored isn't a good reason to invest in a new set of problems. They are the second most expensive purchase you will make and you will make it many times throughout your life. Take care of them from day one and drive it until you wear it out.
  • queencitybuckeye
    se-alum wrote: Get ya a new ride man. Debt isn't fiscal irresponsibility.
    For lifestyle, it certainly is.
  • believer
    Interesting feedback.

    So if I heed everyone's advice and hold on to my car, what about repair costs? Once you approach 100,000 it's not a matter of if but a matter of when with regard to repairs. Timing belts, transmissions, etc. have a tendency to rear their ugly heads.

    And car repairs these days are not cheap.

    Is it still cheaper in the long-run to make those repairs or is there something to be said about the relative "peace of mind" of a car with lower miles and perhaps the remaining balance of a 60,000 or 100,000 mile powertrain warranty?
    se-alum wrote:Debt isn't fiscal irresponsibility.
    Come to think of it, the Feds believe that so why shouldn't we right?
  • queencitybuckeye
    What can be said about "peace of mind" is that someone is looking for a reason to buy a new ride. :)

    Bank the money and decide what to do when something happens to the current car, instead of acting on what could happen.
  • ytownfootball
    You can get an extended warranty reletively inexpensively in most cases. I have found that with most makes/models general maintenece to be cheaper than the payments/anum. I would say that it is not fiscally irresponsible if you have an auto payment in your budget, but you are generally further ahead by paying it off and doing general maintenece, especially if it's a grocery getter/get to work and back ride.
    Less than 15K/year and you should be fine.
  • pinstriper
    Drop $500/month on your loan, you're paid off by Christmas. Even if you put a couple thousand into it over the next 4 or 5 years in repairs you are still wayyyy better off than if you go out and get yourself another car payment and more debt. Once you have your car payed off, keep paying that $500/mo into a savings account for car. Take money out of that to use for repairs, and the rest just builds over the next 4 or 5 years. Then when your car craps out, just buy something cash. That's how you build wealth, owning things outright and planning/saving, instead of living payment to payment on a depreciating asset.
  • believer
    ytownfootball wrote:Less than 15K/year and you should be fine.
    I'm not understanding this point. Less than 15/K of what? Maintenance costs?
  • ytownfootball
    mileage
  • believer
    pinstriper wrote:That's how you build wealth, owning things outright and planning/saving, instead of living payment to payment on a depreciating asset.
    So keep the clunker on the road and be richer for it? ;)
  • believer
    ytownfootball wrote: mileage
    I see. I put about 20/K per year on my car. 25 mile one-way commute to work 6 days a week.
  • pinstriper
    believer wrote:
    pinstriper wrote:That's how you build wealth, owning things outright and planning/saving, instead of living payment to payment on a depreciating asset.
    So keep the clunker on the road and be richer for it? ;)
    lol...exactly. That's the only flaw in the equation, driving the clunker for 4 more years or so; then you're good to go after that. Good luck.
  • se-alum
    queencitybuckeye wrote:
    se-alum wrote: Get ya a new ride man. Debt isn't fiscal irresponsibility.
    For lifestyle, it certainly is.
    It's irresponsible to not be in control of your debt, but having debt doesn't make you irresponsible.
  • believer
    queencitybuckeye wrote:Bank the money and decide what to do when something happens to the current car, instead of acting on what could happen.
    Seems wise enough.
    se-alum wrote:It's irresponsible to not be in control of your debt, but having debt doesn't make you irresponsible.
    This is also quite true. For some people a car payment is a fact of life and as long as you are keeping up with the payments and enjoying the car, no harm no foul.
  • ytownfootball
    You want a new ride bad don't you? Don't lie.

    If you haven't gone without a car payment ever, or at least for a long time, I can't express the gratification of not pulling out that payment book every month. It's worth the risk of the "piece of mind" you think you'd be missing out on.
  • believer
    ^^^Yes I do want it bad...that's why I need to hear the wisdom of guys like you to keep me from doing something stupid!
  • queencitybuckeye
    se-alum wrote:
    queencitybuckeye wrote:
    se-alum wrote: Get ya a new ride man. Debt isn't fiscal irresponsibility.
    For lifestyle, it certainly is.
    It's irresponsible to not be in control of your debt, but having debt doesn't make you irresponsible.
    Why you have debt is the determining factor. Using debt to build wealth can be smart. Using debt to live beyond one's means is irresponsible.
  • queencitybuckeye
    believer wrote: For some people a car payment is a fact of life and as long as you are keeping up with the payments and enjoying the car, no harm no foul.
    As long as one is considering opportunity cost and making that call.