| p>Q: How do you decide if buying a new car is | | | | about a breakdown leaving you at the side of the |
| better than $2000 in repairs? | | | | highway? Does your schedule/personal situation |
| A: In general, I believe that people can save a ton | | | | makes it particularly difficult or costly to deal with |
| of money over the long haul by buying used cars | | | | that kind of thing (i.e. no auto club or friend/family |
| and keeping them "until the wheels fall off." (If | | | | member readily available to help, lost pay from |
| you've seen mine, you know I am walking this | | | | missing work)? |
| particular talk!) Having said that, there comes a | | | | - Value of Current Car - Some might argue that |
| point when it's just not worth it to put any more | | | | you shouldn't spend more in repairs than what the |
| money into the The Old Clunker, as I sometimes | | | | car is worth. I don't necessarily agree with that, |
| affectionately refer to mine. In making the | | | | especially after it gets into that zone where it's |
| decision to fix or replace, I would consider the | | | | essentially worth nothing (well, maybe $500 on a |
| following factors: some quantitative, some | | | | good day) year after year. As my mechanic said |
| qualitative... | | | | when we decided to go another round of fix |
| - Car Model Reputation in general - How does the | | | | instead of replace, "It's not worth anything to |
| current vehicle rate with Consumer Reports and | | | | anybody else, but it keeps getting you from Point |
| the like, in terms of reliability? Try Googling it. | | | | A to Point B reliably, so it's worth something to |
| Based on what you find, would you expect to | | | | you." And it's still much less costly than a |
| see a lot more trouble in the near future? | | | | replacement. |
| - Timing - Are you at one of those mileage | | | | - Cost of Other Options - Can you afford the |
| milestones where a variety of things tend to | | | | new car? (Editorial comment: When you say "new |
| wear out all at once? Obviously, I'm not a | | | | car," don't forget to consider a new used car!) |
| mechanic, so check with a real one, but I vaguely | | | | Compare the cost of whatever car you would be |
| recall "every 60,000 miles" being the interval. If | | | | buying vs. the cost of the current one? When |
| you just need to get past one of those | | | | you do this math, include 1) cost of car itself 2) |
| milestones, it may be worth fixing it. | | | | insurance premiums (new one likely higher) 3) |
| - Your Car's History/Prospects - With this bill being | | | | other costs, e.g. if better gas mileage or if |
| so high, it sounds like a one time replacement of | | | | maintenance is included for the new one. |
| something major. Is it a one-off? Does your car | | | | As you can see, there is no black and white |
| have a history of being relatively inexpensive to | | | | answer, but if it seems likely that the cost (in |
| maintain, or has it needed a lot of repairs? Check | | | | $$$, aggravation, and lost sleep) of keeping the |
| with your mechanic. In their opinion, is it likely that | | | | old one running will be higher than replacing it, that |
| it will be needing a lot more repairs on a regular | | | | seems like a good indication that it's time to move |
| basis? Ask them to ballpark the costs. | | | | on. |
| - Peace of Mind - Are you constantly worrying | | | | |