Deciding when to get a new car

smerka · April 2016

I drive a 2004 Saturn Vue. It has 125,000 miles on it. For the last several years, I have been taking it in for service twice a year and the bill is usually around $1,000 for various maintenance things. Today is one of those days. I am getting new tires and new brakes. At what point do you cut your losses and get something new? The internet says it is worth about $2,200-4,000. We would have to finance something new.

als1982 · April 2016

What you're talking about - tires and brakes - is standard maintenance. I personally wouldn't take on a car payment just to avoid expenses like that. Now if you need a new transmission, or something along those lines, then maybe.

I drive a 2001 Honda Accord with 210,000 miles and love it. I will never go back to having a car payment again unless I absolutely have to. IMO it seems silly to trade a one time bill for one only slightly smaller but that you're tied to for YEARS.

lbonga1 · April 2016

$1000 seems really high for new tires and brakes. But I agree with @als1982 that those are things you would need to be replacing even if the car wasn't older. I'm not sure if you've said you're married, but if so, could your husband learn to do some of the simpler maintenance things? Brakes and oil changes are the easiest. Maybe over the next year, you could save up so that between what you'd make from selling your car and the savings, you could buy a decent car in the $6-8k range?

Xstatic3333 · April 2016

Like @als1982, we don't upgrade our cars until we get into non-routine maintenance stuff. Specifically, we got H's new car, our most recent vehicle purchase, when we hit a point where the repair needed on his old car cost more than the car was worth. I think for me, that will continue to be the cutoff. Officially, we're not opposed to financing. However, I just paid off my car on Tuesday and it's a great feeling. I'd love it if we could at least stick to one car payment at a time, and in terms of how picky we each are about things, it'll probably always be for H's primary vehicle.

For tires, I took advantage of a recent flat to put myself on a schedule where I'm only replacing two at a time. It's a lot less painful. We have a sinking fund for car expenses that we put a little money into each paycheck so that when we have a big maintenance cost, we at least have most of it ready to go. We've done that for about six months now and it's relieved a lot of car stress for me.

smerka · April 2016

So far it has all been maintenance items like the timing belt, battery, new starter, etc. but those still add up and we wouldn't be looking at doing these things if it were newer. Our other car is a 2010 Elantra with 27,000 miles (yes my husband has a three mile commute). His clutch recently exploded which I assume was a bad clutch since the car has so few miles. I'm just nervous about having two older cars and the possibly having to replace both around the same time. Is the general rule to wait until the repair is more than the car is worth?

smerka · April 2016

lbonga1 said:

$1000 seems really high for new tires and brakes. But I agree with @als1982 that those are things you would need to be replacing even if the car wasn't older. I'm not sure if you've said you're married, but if so, could your husband learn to do some of the simpler maintenance things? Brakes and oil changes are the easiest. Maybe over the next year, you could save up so that between what you'd make from selling your car and the savings, you could buy a decent car in the $6-8k range?

The answer to my husband learning to do it is a no. He is a teacher and pretty much has no free time during the school year. And during the summer it can be hard enough to keep up with the yard and the kids.

MommyLiberty5013 · April 2016

The new tires and brakes will last a few years, though. I agree with PPs, we don't replace a car until the repairs cost more than its value. And, we all sink money into the cars for the routine stuff, which is never fun.

Over the rest of the life of this car, it will still cost you less than a car payment with interest.

When we knew we would need to get a different car soon (swapping from a sedan to a minivan due to the number of kids we have), we researched what we wanted to buy (make and model) a few years in advance. We knew the rough cost of it and that became our savings goal for the van.

During that time, we did have to put more money into the older vehicles, but that is still cheaper than taking out a car loan.

bmo88 · April 2016

Personally, I run cars into the ground. I do drive a 2014 Mazda CX-5 now, but that is because my beloved 2000 Dodge Neon with 160,000 was totaled in an accident. If it hadn't been destroyed, I would still be driving the faded paint hoopty ride.

Anyway, as others have said, you are looking at standard maintenance items. Maybe buy cheaper tires that won't last as long and save up for a year or two to buy a new car.

I will say, I did end up buying a new car (first ever) when I got my Mazda CX-5. I got a great deal on it (well below regular price because I knew the sales person) and I have zero regrets. It drives great, gets great mileage and there were no used version of that vehicle on the market when I bought it. I will literally drive this car for the next 12-15 years (I have had it for 2 1/2 years) or longer until it doesn't work anymore.

So while I admittedly bought a new car, I don't care what others think because I got .09% interest rate, I am paying it off in 3 years, I could afford it and I love it. I am very frugal in other aspects of my life and in the future, I probably wouldn't buy a new car again, but I have no regrets about this one.

JoanE2012 · April 2016

We're not terribly MM with cars. We have it working where our cars are staggered to be paid off every 3 years - so we only have one loan out at a time - so this means we each get new cars every 6 years. By that point, we each have around 120 - 130k miles (we each have a decent commute to work). And quite frankly, we like driving newer cars.

I will echo PPs sentiments though - I wouldn't get a new car just because of brakes and tires - that's routine maintenance and expected no matter the age of the car.

smerka · April 2016

Oh I get it. I do the same. I paid cash for this car in 2004. It will be 12 years in July. I'm just wondering where the running it into the ground line is.

hoffse · April 2016

JoanE2012 said:

We're not terribly MM with cars. We have it working where our cars are staggered to be paid off every 3 years - so we only have one loan out at a time - so this means we each get new cars every 6 years. By that point, we each have around 120 - 130k miles (we each have a decent commute to work). And quite frankly, we like driving newer cars.

I will echo PPs sentiments though - I wouldn't get a new car just because of brakes and tires - that's routine maintenance and expected no matter the age of the car.

This is almost exactly what we do. H's car will be paid off in September, and I will probably be looking to buy at the end of the year. We tend to keep them 8-10 years (H is usually on the short side and I am on the long side because I drive less), but we definitely stagger our loans.

So to be completely honest, I probably would have dumped the car two years ago. But really low interest car loans don't bother me at all. I actually have never been able to get on board with the notion of dumping a huge amount of cash into a depreciating asset all at once, and I prefer to have a really low-interest loan that I can comfortably cash flow. It keeps our savings intact. The interest rate on H's car loan is 0.9%, which is lower than the rate of inflation.

Anyway I know I'm in the minority on this, but I would have already sold it. That being said, PP's are right that brakes and tires are routine maintenance.

vlagrl35 · April 2016

I have around 158k miles on my car and its 13 years old and I believe its still in pretty good shape. I'm taking it in soon to get the filter changed and a bracket replaced on the engine because its running much louder than normal - it will cost me around $300. I honestly would not keep a car that was costing me $2k every year in repairs - to me that IS a small car payment - you are just paying for it all then instead of a little every month. $2k in repairs a year is my limit. I can't stand taking out that much money from our savings every year for cars.

DH has around 225,000 miles on his car and its 13 years old. Currently he needs 2 new tires and has an oil leak. Last year we spent around 1k on his car - we are both in agreement that he needs to sell it this year so he can get a newer used version of it. His car needs way more repairs than mine does lately.

vlagrl35 · April 2016

smerka said:

Oh I get it. I do the same. I paid cash for this car in 2004. It will be 12 years in July. I'm just wondering where the running it into the ground line is.

to me its when you just keep dumping money into it even if its maintenance and repairs. Not worth it. Sell it while you can get more money out of it before you can get less. I'm not saying sell it now because you do just have maintenance going on right now BUT average out how much you are spending on the car the last few years - it may be time to start looking around to see what other cars are out there.

cbee817 · April 2016

We're struggling with this right now- I have a 2003 honda civic and while the last repair was only $168 (for a new battery and oil change), I'm approaching 70,000 miles which is usually a huge maintenance visit. Plus I have a feeling that I will need brakes and tires when I get my annual inspection in July. The car is worth $4,000 according to KBB and although I do not like car payments, Subaru (DH bought a 2015 Forester in August at 0.9% financing) has a current deal where a lot of their models have 0.0% financing for 48 months. DH and I are probably going to look next weekend and see if we can get a deal- recently I have felt unsafe in my car (especially on the thruway out to my employer's HQ in the winter, rain, and wind- about a 150 mile round trip. BTW, it's still snowing here!) and I prefer to have DH's car to take the girls places. I feel like it's better to have the upper hand when buying a new(er) vehicle- we can walk away because my car still works fine and right now, I'm not faced with $1,000+ in repairs.

brij2006 · April 2016

Since you currently do not have a payment on this car, then get yourself set up with savings so you can replace it with a car in cash rather than taking out a loan.

As others have said, tires and brakes are normal maintenance. All vehicles are going to need those at some point, so I wouldn't get discouraged because of that.

However, since your vehicle is only worth a tad over $2,000, then I would be aggressively saving to replace it. That way when it does need another $1,000 repair (non-maintenance repair), you have the means to make that decision to get rid of it.

jtmh2012 · April 2016

Personally, I don't replace cars for routine maintenance items. Batteries, oil changes, brakes, tires. They're all routine items. And honestly, they shouldn't be surprises. Batteries are only usually good for about 7 years. Sometimes the give out before this. Other times, they'll last longer. I spend about $800/set for tires on my Impala. That's not excessively expensive. How often they get replaced depends on how I drive the car, but I plan on it about every 2-3 years.

I will also add, I have had some more major repairs done (about $2k each). Why? Because otherwise, the car is in good shape and as much as I don't have an issue with taking out another car loan, I'm not replacing a car that otherwise has nothing wrong with it.

There's also no shame in just saying you want a new car, but all cars require routine maintenance and honestly none of it should be a surprise.

blondie42107 · April 2016

My vehicle is newer than H's. I have a 2010 with 97,000 miles. I drive a lot for work. I think it had 35,000 or 40,000 on it when I bought it 3 years ago. H does our oil changes, sometimes does the breaks, and other little things. I know he's ordered tires online for great prices and had our mom and pop shop nearby put them on. Saved quite a bit. We only replaced my last vehicle (13 years old) because H was taking it in the shop and the guy said, based on the repairs, etc that it was time. Routine maintenance is always going to be there, big repairs - not so much. I'd start saving up!

csuave · April 2016

I'm with the others that said I would have replaced it already. Before marriage I budgeted to replace a car every 8-10 years. When exactly would depend on how many miles it had and the repairs.

H agreed to this when we got married and we started budgeting for a new car for him on that schedule (my car was still pretty new when we got married). We started savings for this goal and when he found out he had a $1000K plus repair and we knew he needed new tires (not the deciding factor but in this case the cost of the tires was factored in to the overall decision) we decided to go car shopping instead of getting it fixed.

Because an 8-10 year car replacement schedule is important to us (like travel is important to others, or excellent child care to others, etc.) we build it into the budget. We had the money for our latest new car in hand when we bought. And even though H was unemployed at the time it was still in the budget because of this planning.

Long story short I think when to replace a car is a personal decision and you should either budget for a new car or for repairs according to how you personally value cars.

LillibetteV · April 2016

I drive my cars until they are unsafe or unreliable. Brakes and tires are routine maintenance - I would wait until you have a major repair that costs more than the car is worth before replacing it. New cars aren't just a financing payment - your insurance and excise tax will go up for the next several years too.

When we decided to become a one-car family about 1.5 years ago we decided to keep my husband's car because it was newer and bigger than mine (even though his still had a loan and mine was paid off) because we reasoned it would still be functional with a dog and kids, where my two-door car would be a pain in the butt. I'm not crazy about this car, but that Subaru commercial where the teenage is given the keys to the car that he rode home from the hospital after being born stuck with me - I told my husband if this car kicks the bucket under 200k miles we're never buying that brand again lol.

robolf · April 2016

It is better to avoid a car payment if you can. I drive a honda 2009 and it is close to 200k miles now. If you learn a few maintenance tricks you can save a lot of money.

beetee123 · April 2016

I don't mean to hijack the threat, but what if routine maintenance starts to become more than the car is worth? SO's car is probably only worth about $700, and I know new brakes and tires are coming soon as well as it having some issues on top of that. We are considering replacing it soon anyway because I honestly don't like him driving around in it. Even though we both live close to work we drive in the opposite directions, and I'm always worried it just won't start for him when he's far from home or at work. I also hate thinking about him on the highway in it.

brij2006 · April 2016

@beetee123 I'm very anti-debt, so that weighs greatly on my decision as well. But to me, if his $700 car is still running and driving just fine but only needs routine maintenance, then I would keep it and do the maintenance. Even if the newer vehicle would be worth more.

Reason I say this is because you could turn around and buy a $3,500 vehicle with cash. However, that vehicle will likely need those same maintenance repairs or more repairs after you purchase it.
At least with his current vehicle, you know what you have and what it needs.

Now, if it's needing major repairs that aren't regular maintenance, like a new transmission, engine, etc. Then it's time to can it.

jtmh2012 · April 2016

brij2006 said:

Reason I say this is because you could turn around and buy a $3,500 vehicle with cash. However, that vehicle will likely need those same maintenance repairs or more repairs after you purchase it.
At least with his current vehicle, you know what you have and what it needs.

Now, if it's needing major repairs that aren't regular maintenance, like a new transmission, engine, etc. Then it's time to can it.

I don't tend to agree with brij on many things, but this is one of the places I do. Maintenance repairs are a normal part of car ownership. You also have a known entity. If you buy something new to you, but used, now you don't know what's been done or not done.

I also don't buy into the "this repair will cost more than the car is worth" line of thinking. Are you selling the car tomorrow? Next week? Then it doesn't matter.

julieanne912 · April 2016

IMO, I think the only time you have to take into account maintenance items if if you aren't sure the car will last as long as the maintenance items. So say you spend $750-1000 on new brakes and new tires, but are pretty sure the car itself may not make it 3 years, and when you go to sell your now dead car, you won't be recouping that money at all.

smerka · April 2016

That happened to us with our previous car. We put $500 in tires on it and it 'threw a rod' (something fatal in the engine) the next month. We got $500 for it at the dealership for trade in.

vlagrl35 · April 2016

beetee123 said:

I don't mean to hijack the threat, but what if routine maintenance starts to become more than the car is worth? SO's car is probably only worth about $700, and I know new brakes and tires are coming soon as well as it having some issues on top of that. We are considering replacing it soon anyway because I honestly don't like him driving around in it. Even though we both live close to work we drive in the opposite directions, and I'm always worried it just won't start for him when he's far from home or at work. I also hate thinking about him on the highway in it.

when it starts breaking down on the highway is a good indicator to me to get a new car. I use to drive a tempo in college but it broke down twice on the highway 2 different times - that's when I got my ford focus.

beetee123 · April 2016

vlagrl35 said:

beetee123 said:

I don't mean to hijack the threat, but what if routine maintenance starts to become more than the car is worth? SO's car is probably only worth about $700, and I know new brakes and tires are coming soon as well as it having some issues on top of that. We are considering replacing it soon anyway because I honestly don't like him driving around in it. Even though we both live close to work we drive in the opposite directions, and I'm always worried it just won't start for him when he's far from home or at work. I also hate thinking about him on the highway in it.

when it starts breaking down on the highway is a good indicator to me to get a new car. I use to drive a tempo in college but it broke down twice on the highway 2 different times - that's when I got my ford focus.

In that case it should have been gone years ago! Lol I just hate the car so much. It wasn't an issue because we were able to commute together for almost a year, but now we will have to take separate cars. It hasn't given us any issues recently, but it seems to be that whenever we need it it just doesn't start.

vlagrl35 · April 2016

beetee123 said:

vlagrl35 said:

beetee123 said:

I don't mean to hijack the threat, but what if routine maintenance starts to become more than the car is worth? SO's car is probably only worth about $700, and I know new brakes and tires are coming soon as well as it having some issues on top of that. We are considering replacing it soon anyway because I honestly don't like him driving around in it. Even though we both live close to work we drive in the opposite directions, and I'm always worried it just won't start for him when he's far from home or at work. I also hate thinking about him on the highway in it.

when it starts breaking down on the highway is a good indicator to me to get a new car. I use to drive a tempo in college but it broke down twice on the highway 2 different times - that's when I got my ford focus.

In that case it should have been gone years ago! Lol I just hate the car so much. It wasn't an issue because we were able to commute together for almost a year, but now we will have to take separate cars. It hasn't given us any issues recently, but it seems to be that whenever we need it it just doesn't start.

I'm seriously done with dhs car. I guess I don't run cars into the ground. Once they start having too many issues I do start to feel less safe. Dh currently has an oil leak that he doesn't want to fix so I'm constantly reminding him to check his oil level cause I'm afraid the engine will get jacked up. He doesn't want to put any more money in it.

Xstatic3333 · April 2016

beetee123 said:

vlagrl35 said:

beetee123 said:

I don't mean to hijack the threat, but what if routine maintenance starts to become more than the car is worth? SO's car is probably only worth about $700, and I know new brakes and tires are coming soon as well as it having some issues on top of that. We are considering replacing it soon anyway because I honestly don't like him driving around in it. Even though we both live close to work we drive in the opposite directions, and I'm always worried it just won't start for him when he's far from home or at work. I also hate thinking about him on the highway in it.

when it starts breaking down on the highway is a good indicator to me to get a new car. I use to drive a tempo in college but it broke down twice on the highway 2 different times - that's when I got my ford focus.

In that case it should have been gone years ago! Lol I just hate the car so much. It wasn't an issue because we were able to commute together for almost a year, but now we will have to take separate cars. It hasn't given us any issues recently, but it seems to be that whenever we need it it just doesn't start.

H's car two cars ago was like that. He missed a couple of days of work (without pay at the time) over it, but we kept it chugging. Then we were going to need new tires to pass inspection, and that was when we called it. We are people who will take a (reasonable) car payment over a situation like that, as much as I'd like to avoid one for my next vehicle.

MommyLiberty5013 · April 2016

Toyotas and Hondas are known for getting excellent longevity. One of these cars with under 100k miles on it, is just at the beginning of its life. The Toyotas and Hondas our families have owned go well until close to 200k miles.

I think the notable thing in this discussion is that some people are okay with car loans and others are not and that's truly the determining factor.

DH and I both grew up with families that got cars that were sensible and comfortable, but not cushy, and both our families paid cash for vehicles. Neither sets of parents took out car loans. We do not either and netiher do our siblings.

Vehicles are not assets and they immediately decrease in value once purchased, which is why we just don't take out loans on them. Yes, there are good cases to be made for why one may wish take out a car loan, but both familes also drive cars for 8-10 years and have ample time to save up for a vehicle purchase.

I think it just comes down to principles - wrong or right - it's just principles on money.

als1982 · May 2016

als1982 said:

What you're talking about - tires and brakes - is standard maintenance. I personally wouldn't take on a car payment just to avoid expenses like that. Now if you need a new transmission, or something along those lines, then maybe.

I drive a 2001 Honda Accord with 210,000 miles and love it. I will never go back to having a car payment again unless I absolutely have to. IMO it seems silly to trade a one time bill for one only slightly smaller but that you're tied to for YEARS.

Welp, I totally jinxed myself with this comment. My car died on the way home from work Monday night. Check engine light, burning smell and the works. Took it in to be looked at the next day and the cost to repair totaled about half the car's value. We trying to hold off on getting new cars until after our last student loan is gone, but we decided the increasing unreliability of the car wasn't worth the expense. So, I bought a 2012 Jetta with 35,000 miles for $11,000. This sets us back a bit, but we still hope to have the student loans and this new to us car paid off my year end!

Deciding when to get a new car

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