Should we buy a new car, used car or repair this car? UPDATE post #21

[EllenFrasier]

My dd22 has a 1995 Chevy Lumina that she bought from a family friend a few years ago. It didn't have a lot of mileage on it as they were an elderly couple and didn't go too far with it, just around town. He also had the oil changed regularly, things like that. Now the car has a problem. The anti-freeze is leaking into the oil or something and it may cost over $500 to fix. She only paid $900 for the car! She wants to buy a new car, but I don't know if they will give her financing, at least not at the rates she thinks. I think she should get a good used car. My husband thinks she should fix this one. I'm just afraid that something else will go wrong with it because it is so old.

Opinions welcome!

 

[neatokimmo]

I would fix the car whose history you know. Age doesn't really matter as long as the car was maintained. She won't be able to sell it broken right? Would she even be able to find a car for $500 that runs?

My dd22 has a 1995 Chevy Lumina that she bought from a family friend a few years ago. It didn't have a lot of mileage on it as they were an elderly couple and didn't go too far with it, just around town. He also had the oil changed regularly, things like that. Now the car has a problem. The anti-freeze is leaking into the oil or something and it may cost over $500 to fix. She only paid $900 for the car! She wants to buy a new car, but I don't know if they will give her financing, at least not at the rates she thinks. I think she should get a good used car. My husband thinks she should fix this one. I'm just afraid that something else will go wrong with it because it is so old.

Opinions welcome!

 

[maggieusa]

I would fix this one and tell her to start a new car fund and save money if she gets a new one you might have to co sign and trust me this is not good I did this for my son and DIL abd we are now having second thoughts. NOthing we can do now.

 

[cheerforchelsea]

I would fix the one she has - you know its history....have her start setting aside enough money each month that would be equivalent to a car payment.....it won't take long for her to decide that car payments are no fun.

 

[DawnM]

Depends. What is the mileage now? Will the $500 make the car last another 4 to 5 years?

It is a 15 year old car. I don't know that I would pour that much into it unless you can get another few years out of it.

Dawn

 

[disney fan 2013]

I think it really depends on your daughter. If she has a reliable income and is financially responsible, I think a new car is the way to go. My old car had a great history but then I started pouring money into it.... I kept saying I would just fix this one thing and everything would be fine, but it never stopped once it started.... I'm 22 as well and finally just bought a brand new car. It was hard to win my parents over even though I have always been financially responsible, but in the end the thought of not having to worry about running into problems makes the purchase 100% worth it!! I wasn't sure about my financing rate either, but I figured it didn't hurt to look into it and I was actually financed at a great rate. It just kills me to think about the money I ended up spending fixing my old car that I could have put towards my new one !!

 

[Allisdad]

I hate to be a downer, but this sounds like a major problem. Usually when the antifreeze and oil mix it means the block is busted. This is a lot more than a 500 dollar fix. If the car is getting hot than the engine is shot. A local shop can do a pressure check on the motor and tell you for sure. Usually doesn't cost much time or money to have this done. You can buy stop leak to pour in and it might stop the leak for a very short time ( i suggest blue devil) this might help her keeping it running long enough to save enough for another car. Just a thought, I hope I am completely wrong, but from my unfortunate experience this sounds like the case. Good luck, and feel free to pm me if you have any questions.

 

[kejowe28]

Sounds like money pit

 

[Dismom55]

If you have a reliable mechanic, take the car and get a good assessment of the problem. If you can spend a lesser amount of money now and get some more miles out of it while your daughter saves for a large down payment, then go for it. If not, the answer really depends on what she can afford. A newer car not necessarily new one may be her best bet. I have a 22 yr old daughter and worry about her driving a car that might break down and we are not in a financial position to help her out as we ourselves are trying to save for a downpayment for a newer car.

 

[Carl Fredricksen]

This model of car had a problem with the head gasket leaking, which is most likely the problem based on your explanation and the price you were quoted. In fact, based on the age, I'm surprised it made it this long on the original gasket, as they usually went bad in the first 5-7 years. It is a known issue for that car, and once fixed should not need to be repaired again for a long time.

New cars are a ripoff, as they lose 40% of their value in the first year, and a quality used car is going to require a down payment (which the 1995 Lumina has no real trade in value) and a monthly payment.

The Lumina was actually one of the better cars that GM built in the 90's. Car payments stink, and if it is running okay, and still has relatively low mileage, it is money well spent to fix it.

 

[herdtoDisney]

I agree with the poster above. If it's the headgasket, that can be repaired and you could get a lot more miles out of the car. It's expensive because of the labor, but my dh has replaced headgaskets on two GM cars of ours and both continue to run well.

I'd tell DD, fix it and start a savings for a new one eventually. Tell her, too, that $500 is like maybe 2 months of car payments, so if she fixes it and gets a couple months out of it, it's paid for itself-although she'll probably get much more time than that.

 

[ajk912]

I'd tell DD, fix it and start a savings for a new one eventually. Tell her, too, that $500 is like maybe 2 months of car payments, so if she fixes it and gets a couple months out of it, it's paid for itself-although she'll probably get much more time than that.

This has always been my car logic as well. Though I initially might get sticker shock at a $1000 repair bill, but if I expect I might make it 4 months before another repair bill, I at least break even if not come ahead.

What REALLY ticks me off is repair bills when I am still paying for the car. Then my logic doesn't work and it ticks me off.

 

[shortbun]

15yo car starting to have big problems = the car will soon become a big hole you throw money into.('scuse the preposition) I vote find another, newer car. Something a couple years old will be a good buy as it's already depreciated. 22yo people don't need new cars unless they have amazing jobs. She should get a second job to make the payments.

Look, IF you have a great mechanic, have the car completely evaluated. Check the brakes, steering, transmission, tires, exhaust....everything that could nickel and dime her over the next several months. Have a very clear picture of a 15 yo car before you begin to 'fix it to make it last several more years.'

 

[cassandrap83]

How old is DD? Is she a teenager? Fix the car.

Is she paying for a new car herself, and she can afford it? Go buy a new/used car. Use the $1400 you were going to use to fix it as a downpayment.

Or heck, go lease a car. 99% of those that you lease include maint.-free packages. Plus, the payment will be more affordable.

 

[StitchBuddy]

I would buy a new car inexpensive car with a long warranty. That way she as something dependable and won't need to buy another on for quite sometime.

 

[mamaLori05]

I would talk to the banks and just see what your dd can get for loans. Doesn't hurt to ask. My dh and I were 23 and engaged when we built our first house less than 8 yrs ago, no co-signing. Bought our first new car when we were 24, again with no co-signing. Yes that was before the financial crisis, but if she has a steady income and has decent credit she should be able to get a loan at 22 without having to co-sign.

Personally we like to purchase new cars because we keep them forever and run them into the ground.

 

[CC12005]

I bought a brand new car when I was 20 without a co-signer & had it paid off within 2 years. All my extra money went to it. I purchased the ad special. No bells or whistles, didn't even have AC when purchased. They wanted $2000 more for a car with AC. I checked inside the dealers repair shop & they were only charging $1500 to install. Took me a year & in LA summer time heat the first summer was brutal. Got it the next summer. I purchased a Nissian Sentra nothing cute like a Mustang just something reliable.
My friends who had parents cosign for them all had them repossessed. One even filed bankruptcy at 21 because of her car. Last year we purchased a new Civic for my 20 year old sister who is in college. She was to be responsible for payments, but I knew going into it at some point we would probably have to help her out. So we were okay purchasing the car. Fits our budget & I wanted her in something safe. Two weeks after she got it before her first payment was due she goes crying to my husband how she's stressed over money. Guess who has been making the payments (Insert sucker stamp over my forehead). So be prepared to help if you co-sign. Find a car that fits YOUR budget not hers & go into it thinking of it as a gift. Every payment she can make is just a perk. The most important thing is she have a safe, reliable car whether it is used or new.

 

[Shelly F - Ohio]

I would fix the one she has now. Then at the end of the year when dealerships are looking to get rid of inventory by Dec 31, see if you can get a good deal on a new car with a warrenty. Or a car that is fairly new one but still has a warrenty with it.

 

[nexttrip4us]

My initial reaction is skip the repair...but...I totally agree with the statement that $500 is hardly 2 months of pymts on a new car...if you can put that into and get some more time out of it, seems like a good idea....if you have a good mechanic that can help you determine what else might be lurking in the repair future that would help a lot too. Thankfully we have a great mechanic that has saved me from running away from a seemingly costly repair to get something new. I HATE cars and dealing with repairs but new cars are such an expense!

Good luck!

 

[sk!mom]

To me it would depend on your DD's situation. Since she's asking mom and dad what to do then I'm assuming that she isn't completely independent yet. If she's still in school and has a fairly low income, then I would fix the car.

If I'm wrong and she has a reliable full time income, then I would start looking to get rid of it. I would never by a brand new car just a newer used car.

Also, what's the mileage on the car? That really means more than the age. We've driven two different Fords over 15 years and will keep my 8 year old Toyota as long as possible.