To buy or not to buy (car)

[tubaloth]

I'm single (hey ladies) so I only have one car. I bought my car in Sept 2006. It was the 2005 model and had just under 10k on it. (I think it turned over to 10k that day or the day after).

I paid the car off in 2009. It now has just over 63k miles. Which is actually pretty low for a 2005 model.

I'm kinda done with it... meaning I'm just tried of it.

It runs fine.

I got a raise back in May. So I have kind of been looking at cars on and off. But I never fully planned on buying a car until I stop paying Mortgage insurance on my house. But that will probably still be another year and half to two years. (I bought my house 4 years ago, just after paying off the car).

Today I find a listing for a car that is 5-6k below anything else I had seen before. (Mostly because I'm looking for used 2013).

The little voice in my head is saying I shouldn't pass up a deal like this. With the low price... with selling or trading in your car. The payments won't be that bad.

Then the other side says, if its this good now, just wait until spring.

This is still early phase, I haven't actually even seen it (not even in picture). I have only emailed the sales person about it. I glanced and loan rates.

What to do...

[Quin]

I'm single (hey ladies) so I only have one car. I bought my car in Sept 2006. It was the 2005 model and had just under 10k on it. (I think it turned over to 10k that day or the day after).

I paid the car off in 2009. It now has just over 63k miles. Which is actually pretty low for a 2005 model.

I'm kinda done with it... meaning I'm just tried of it.

It runs fine.

I got a raise back in May. So I have kind of been looking at cars on and off. But I never fully planned on buying a car until I stop paying Mortgage insurance on my house. But that will probably still be another year and half to two years. (I bought my house 4 years ago, just after paying off the car).

Today I find a listing for a car that is 5-6k below anything else I had seen before. (Mostly because I'm looking for used 2013).

The little voice in my head is saying I shouldn't pass up a deal like this. With the low price... with selling or trading in your car. The payments won't be that bad.

Then the other side says, if its this good now, just wait until spring.

This is still early phase, I haven't actually even seen it (not even in picture). I have only emailed the sales person about it. I glanced and loan rates.

What to do...

Beware, be waaaaaare.

Any time 1 specimen is drastically below market value... It COULD just be an idiot selling it OR

- Flood

- Accident

- Major mechanical

- etc.

Search the VIN.

This will happen a LOT about 6mo after a major disaster. Cars that were in floods down south will get totaled (because they're not safe).... Then dried out and shipped to the West coast. Cars that were in fires on the west coast will get totaled, then shipped to the east coast after the cosmetics are taken cafe of. (Smoke and heat addi too much stress to engine & computer components to be considered safe). Accidents anywhere shipped anywhere else. Et cetera.

Equalling lemons / ticking time bombs.

But the geography (plus people not checking VINs in general) leads to people clueless about hurricane damage or mud flows or (pick natural disaster)

Q

[Just_A_Guy]

I dunno. Replacing a paid-off, trouble-free car seems like a pretty expensive way to deal with ennui. (Says the guy driving the '96 Corolla with 290K miles on it!). Couldn't you just take a couple thousand bucks and throw it into some hobby you've always wanted to try out, but never got around to? You might find that more rewarding in the long term . . .

[prisonchaplain]

I'm with J_A_G...you ought to get my new book. The First Hurdle in Golf--Finally Breaking 130. :-)

[AngelMarvel]

I wouldn't go for anything with payments...especially when you already have a car with low miles and running fine. I'm with finding a hobby or something around your house that needs to be taken care of... or add to your food storage. At least that way you won't have payments.

I think, if it sounds to good to be true...

[Guest]

I'm with all of the above. Put aside the monthly payments you would have paid on that car (plus interest). By the time your PMI is done, you would have enough money saved to buy a certified used vehicle for cash. And you would enjoy driving it better when you can afford to buy a new tire if some idiot at work decides to slash them (happened to me!).

[bytebear]

my old '98 car finally died and I had to buy a "new" car. Bought a 2010 and now I have a car payment and I hate it. I hate not owning a car outright. Keep what you have. get a new vanity plate or seat covers to spice up the old girl.

[Just_A_Guy]

I'm with J_A_G...you ought to get my new book. The First Hurdle in Golf--Finally Breaking 130. :-)

Golf?!?

On second thought--buy the car.

[beefche]

Amen to no car payments. Seriously, I HATE car payments. I'm still driving my 2001 with 153,000 miles car until the thing dies before I'll get another car payment.

Try getting excited by seeing your savings account add up. Do you have a year of net salary saved? If not, then go for it. Invest it. Buy that expensive camera you (or I) have always wanted. Don't do anything that makes you have a payment for longer than 6 months (to take advantage of those 0% interest if you pay it off in 6 months kind of deal).

[pam]

I haven't had a car payment in years and I'm not looking forward to one again in the future. And I've only had to have liability insurance. I'm like Beefche. Still driving my 2001 Nissan but mine has about 183,000 miles on it. It's needing some major work right now and I'm trying to decide if I just keep pouring money into it or purchase a newer car. Probably not new but a new used car.

[Bini]

I like JAG's advice.

[Quin]

Same token.... My car is over 10 years old, over 100k, & worth about $2500.

I paid $4,000 into it this year alone to keep it running. (And more than 2k a year for the past couple years)

I will NEVER (willingly) keep a car this long, again.

I will either sell every 2-3 years or lease... So that it's in top form & has decent resale value (or give back value). The maintenance costs are too great.

Maybe in higher end cars (or pre computerized engines) they don't start falling apart, but at least in my 03 protege (and all my acquaintances 10ish year old cars)... They're money pits. Any of us would pay less on car payments than we currently do on repairs.

Q

[beefche]

)... They're money pits. Any of us would pay less on car payments than we currently do on repairs.

Q

First, it depends on the car. My 2001 Mercury Cougar gets maintenance only things. I do probably need to take it into the mechanic to get some work done (it's riding rough), but it still runs and I don't have any issues with it.

And second, depends on how you determine car payments. If you put in $4200 for repairs and that fixes the car without a necessity to put more money into it for a couple of years, then that doesn't account to less than car payemnts.

Let's say you have a car payment of $300/mo for a new car. That's $3600 a year x 5 year loan = $18,000. Or even if you have a lesser amount $200/mo x 5 years = $12,000. Now, if you are dumping $4200 a year into a car, then yeah, it's cheaper to buy new.

[prisonchaplain]

Golf?!?

On second thought--buy the car.

Heresy! Know ye not the spiritual nature of this sacred calling?

http://ts4.mm.bing.net/th?id=H.4985869711507855&pid=1.7&w=203&h=188&c=7&rs=1

[mnn727]

After not having a car payment for almost 15 years, my wife's car up and dies last spring, so now we once again have a car payment - I HATE IT!

If your current car is working ok and you're just tired of it.....too bad. Put the money you'd spend on a car payment in the bank each month and have more of a down payment when you do need one.

---

proud owner of a paid off 2001 F150 and not so proud owner of a payment laden 2012 Camry

[mrmarklin]

Pay maintenance or make a payment........with the older cars you're only one major repair away from junking it. I'm a drive it 'til you drop guy as well, but I buy high end cars because I spend a lot of time behind the wheel.

I don't believe in paying cash for anything that declines in value, so I have always financed my cars. For me the only reason to buy new is 1- Too many miles, and 2- technological changes. Because I spend a lot of time driving I like Bluetooth, Satellite radios and navigation systems among other amenities. Also a lot of new features such as adaptive headlights, Xenon headlights, tracton control, lane recognition, etc have made driving a lot safer. That's another good reason to upgrade.

I get ennui. I just bought a Camaro ZL1.

You wouldn't want my car payment. Or buy gas for it.

[Guest]

Same token.... My car is over 10 years old, over 100k, & worth about $2500.

I paid $4,000 into it this year alone to keep it running. (And more than 2k a year for the past couple years)

I will NEVER (willingly) keep a car this long, again.

I will either sell every 2-3 years or lease... So that it's in top form & has decent resale value (or give back value). The maintenance costs are too great.

Maybe in higher end cars (or pre computerized engines) they don't start falling apart, but at least in my 03 protege (and all my acquaintances 10ish year old cars)... They're money pits. Any of us would pay less on car payments than we currently do on repairs.

Q

I have a 1998 Protege. Or rather, my dad has my 1998 Protege. Paid off in 2001, gave to my dad in 2003, still ticking until today with gajillion miles in it (I drove 120 miles one way to work!). I bought it brand spanking new, followed the maintenance schedule (my dad kept harping on it) and besides having to replace the O2 whatever-it-is (common gripe of Mazda sedans) and replacing the windshield wiper motors, it was pretty reliable.

I am a Mazda fan.

I continued to pay the monthly payments on it even after it was paid off (put in savings) so that after 2 years, I was able to buy a Cadillac CTS with so much down that I was able to pay it off in 3 years. That car lasted me 10 years (this one had issues - the sunroof started to leak, the AC quit working and finally, the transmission blew)) while I continued to save but I was able to get another Cadillac not too long ago with a bit of a loan (2 years worth).

Cars are not like houses. They're more like microwaves. You don't buy them as an investment. They're purely expense. Mitigating the expense is what we try to do.

Edited September 4, 2013 by anatess

[tubaloth]

Thoughts--

It is kind of funny how some of you brought up Hobbies. I have been wanted to buy a DSLR camera (around $700). I use to take pictures on an off in college. I never got fully into it. I had a hard time justifying spending that much for a camera when I only use my current one 2 times a year.

After I posted I was reminded that right now is when all the new models come out. I haven't seen the 2014 model come out yet. Its not that I would get it, its more I would think it would drop the price of the 2013's more.

I think with a small down payment and I sell my current car (which I could think I could get 6,500 for) I think my monthly payment would be closer to 225 -250. (which is less than I had last time).

If I wait my car has less value. I could save up more for a bigger down payment. The car price will probably drop some, but it might mean more millage.

With only having one car, I don't think I can be one of those that drives it until it dies.

I could care less of having a navigation system (I have a smart phone). or even a backup camera. but my current crossover happen to have a sun roof. The problem the newer car doesn't come with some simple sun roof, they decided to go with a panoramic sun roof. Meaning it cost more, so I don't think very many people go it.

[Guest]

Thoughts--

It is kind of funny how some of you brought up Hobbies. I have been wanted to buy a DSLR camera (around $700). I use to take pictures on an off in college. I never got fully into it. I had a hard time justifying spending that much for a camera when I only use my current one 2 times a year.

After I posted I was reminded that right now is when all the new models come out. I haven't seen the 2014 model come out yet. Its not that I would get it, its more I would think it would drop the price of the 2013's more.

I think with a small down payment and I sell my current car (which I could think I could get 6,500 for) I think my monthly payment would be closer to 225 -250. (which is less than I had last time).

If I wait my car has less value. I could save up more for a bigger down payment. The car price will probably drop some, but it might mean more millage.

With only having one car, I don't think I can be one of those that drives it until it dies.

I could care less of having a navigation system (I have a smart phone). or even a backup camera. but my current crossover happen to have a sun roof. The problem the newer car doesn't come with some simple sun roof, they decided to go with a panoramic sun roof. Meaning it cost more, so I don't think very many people go it.

I love my panoramic sunroof. Love it love it love it. But no, it's not worth 5 years of $225 car payments for me.

But really, to buy or not buy a new car is not the question. The question is what is a smart way to pay for it. This is the same question with a pair of pants. What's the best way to pay for pants? Get designer brand or get Walnart brand 4x cheaper? If the designer brand lasts 5x longer, then it is a smarter use of money. But, it's not as simple as that. If the designer brand lasts just as long as a Walmart brand and is no more comfy than the Walmart brand and is not nicer than the Walmart brand, then is the "elevated feeling of self-worth or whatever it is that attracts you to the designer pants" worth 4x the money? Some people (and you can include me in this) say yes. But then, there are always better things to spend that money on... Nobody can really tell you what a new car is worth to you. Just make sure that whatever it is, that you don't pay more than it is worth - counting the interest you have pay to on a loan and the insurance premiums which is different for different make and model and year of car and the maintenance and fuel cost.

Edited September 8, 2013 by anatess

[Still_Small_Voice]

I am looking at eventually buying a used completely battery electric car. I am paying about $1,500 in gasoline per year because my travel to work is about 60 miles round trip. I am tired of paying ever increasing gasoline prices which are likely going to continue to go higher. (I hope I am wrong but I think in about four years gasoline will be around $5 per gallon.)

I will be looking hard at whatever I buy and I won't be paying much more than $10,000 for the car. I have put hours of research already into this subject.

Never buy a new car unless you have a net worth of more than 1 million and can pay cash. You can get a really good car for $16,000 or less.

I recommend you visit CarComplaints.com | Car Problems, Car Complaints, & Repair/Recall Information and check out whatever car model you are looking at.

[bigcreek]

Save up and pay cash. Thats what I did with my last truck and it is so nice to know you are not paying hundreds or thousands in interest. Its all yours free and clear. Still have the insurance to pay but that is minor compared to payments.