Should I buy a new car
My old car (ironically which I have nicknamed Old Faithful) finally bailed out on me. I left my car at the mechanic over the weekend and he said that
- my rear brakes need replacement(~200 bucks)
- so do my front ones(~200 bucks)
- my radiator needs to be replaced(~400 bucks)
- my oil gasket is leaking(~150 bucks)
- my oxygen sensors need to be replaced(~250 bucks)
- my door handle needs to be fixed(~350 bucks)
Grrrr… and this just after I replaced my tires with 4 new ones a couple months back(cost me 400 bucks). How ironic that the tires come with a lifetime warranty 
. Not to mention that I replaced my car’s starter last week for 250 bucks. How could my car do this to me? Oh and why did this have to happen at this time? I am leaving for India next week and wont have much time to fix the problem or shop. 
We are just going through a “bad car phase” in life. My wifes car’s radiator started leaking 2 weeks back and we had to do a bunch of things that cost us 450 dollars.
In a way I am not surprised that my car gave up. It is 1995 made Toyota Avalon XLS with 170K miles on it and very poorly maintained by me. I had purchased it 4 years back for 5500 when it had 137 miles and at that time the car looked new. The previous owner had cared for the car very well. The car looked like it was 2000 built when I purchased it.
Anyhow I am confused about what to do at this point,
Should I buy a brand new car: I am typically not a big fan of this since the car reduces in value by 15% as soon as you drive out of the dealership. But at the same time it is easier to buy than going through the used car deals and finding out if the used one has any problems etc…Also it comes with a warranty, etc… One con is also having to deal with those irritating car salesman.
Should I fix my car: It will cost me another 1500 bucks and should “probably” drive for another couple of years. After all its a Toyota. My mechanic said that if I fix all the problems, it should run for 250K miles(hmmm… not too sure about this). The cons are that I will spend 1500 dollars but when I sell my car, I will get1500 dollars max for it then. If I sell it now I should still get 1500 dollars.
Should I buy a newish used car: By a newish used car, I mean a car which is a year or two old and has already undergone good deprecation(~20%). The cons are that you don’t get a good choice of colors and features. Hey but 20% off is quite some money. The challenge is to find such cars.
Should I buy an old car: I am quite opposed to this since I know in a few years again it will have the same problems.
I am totally confused on what to do so if you have some ideas or can talk from your experience let me know by leaving comments. Thanks!!!
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June 23rd, 2008 at 8:39 pm
I think you should buy “a newish used car” :). I don’t see a strong enough reason for you to pay that additional 15%-20% for a brand new car.
June 24th, 2008 at 10:17 am
May be looking the other way around might help. How much money do you want to spend on purchase of car, how much cost will it incur per year based on the car type you buy, how much will you drive (use public transport?) and so on.
Type of car is just a single dimension of your problem.
my 2c
June 24th, 2008 at 4:40 pm
Get a second opinion on the repairs, look for a shop that works only on toyotas. On purchasing a replacement car will you drive it till the wheels fall off or trade it in a few years? Till the wheels fall off, buy new and follow the maintenence schedule in the handbook. Edmunds.com is a good source for vehicle cost and comparisons on all types of vehicles both new and used. Good Luck
July 13th, 2008 at 11:35 pm
Check this out - though not as an answer to your question.
http://www.investopedia.com/articles/pf/08/cost-car-ownership.asp?viewall=1
August 21st, 2008 at 8:59 am
Looks like repairs would equal what…3 months of car payments (even on a used car)?
I’d think about paying to fix then start an agressive savings plan to buy a quality used car.
Currently i have 97 honda crv. Once after getting some maintenance done at dealer, salesweasel asked me if i want to look into something new and more “in style”. I said “Okay, so you want me to trade a car that is running great, that i’ve had paid off for 9 years for….something that ‘looks’ better.” He hung his head low and said “Just asking….”