Buy a car? or No?

[MKCP5]

We are thinking about buying a car. My van is running fine, it's a 2005 that we bought used, and I have about 20 payments left on of $ 295. It already has 85k miles on it. We are not "car" people so it is not a vanity thing. I just need something good to get me from one place to the next. I am concerned that by the time we pay it off, it won't be running well and it certainly will not have any resale or trade in value.

In the meantime, I am seeing all these crazy sales on vehicles because of the economy. 0% financing, deep cuts in prices, big rebates. I would have to take a 3 or 4 year car loan to buy something, but the payments would probably be the same, but for a longer time, but I would have a car with MUCH fewer miles.

Any financial gurus out there with good advice?

 

[1PrincessMomma1]

Is it even worth what you owe on it now? Financing a used car rarely works out to your benefit. I doubt your payments would remain the vans are expensive. Unless you get a bare bones base model you are looking at over 20,000 for one other wise and payments would be pretty high without a good down payment.

 

[taitai]

If your car is running well and you are not car people, why do you need a new one? Just because there are deals, doesn't mean you need to act on one. There are deals for yachts and multi-million dollar mansions, should you buy those too?

No matter how you look at it and unless you buy a custom made Ferrari, a car is a depreciating asset. NEVER finance a depreciating asset. You will pay so much more. Keep your existing car, bank what you would pay in car payments when yours end and then pay cash for a new car when you really need one.

Good luck.

taitai

 

[MKCP5]

Is it even worth what you owe on it now? Financing a used car rarely works out to your benefit. I doubt your payments would remain the vans are expensive. Unless you get a bare bones base model you are looking at over 20,000 for one other wise and payments would be pretty high without a good down payment.

Well, financing a used car was my only option. My family is not in the position to pay cash. I would not be buying another van. The kids are older, we don't need something so large.
We could put some $$ down on another vehicle

 

[msmayor]

You say the vehicle you own now is a 2005....so 4 years old...and it has 85K miles.

What happens when the "new" vehicle you want to buy gets through the first 4 years with 85K miles...will you want another one then too?

Realize that with good regular maintenance (oil changes, etc.) a car really CAN last into six-digits of mileage. You can't expect any car to not need maintenance...they ALL do...stuff wears out.

Would you rather pay $500 for new brakes ONCE during the year, or keep paying $300/month on a newer car that doesn't need brakes....yet?

My DH and I always keep cars a very long time. First Chrysler we owned together we gave to my nephew after 8 years and 110,000 miles. I traded in a Volvo station wagon after 14 years and 154,000 miles. The car my husband drives right now (another Chrysler) is almost 9 years old and has 152,000 miles.

And I might add....the only maintenance we've done on my DH's current car is oil changes every 4,000 miles, two sets of tires, timing belts twice (should be done every 75,000 miles) brakes twice and maybe a few other minor things.

Keep what you have. Take good care of it. And enjoy the time WITHOUT a car payment, giving you the chance to plow that extra money into savings.

 

[MKCP5]

If your car is running well and you are not car people, why do you need a new one? Just because there are deals, doesn't mean you need to act on one. There are deals for yachts and multi-million dollar mansions, should you buy those too?

No matter how you look at it and unless you buy a custom made Ferrari, a car is a depreciating asset. NEVER finance a depreciating asset. You will pay so much more. Keep your existing car, bank what you would pay in car payments when yours end and then pay cash for a new car when you really need one.

Good luck.

taitai

WoW ! MAybe I will just withdraw this post. When you pose a question why do people immediately have to be so nasty? I am glad you are so superior and can look down your nose on someone just posing a question. Really. So snarky.

I understand I dont HAVE to act on this. I am considering if it would be better long term to have a car that lasts longer, that's all, and if this is the right time to try and down size and make this a financially sound deal.

 

[MKCP5]

You say the vehicle you own now is a 2005....so 4 years old...and it has 85K miles.

What happens when the "new" vehicle you want to buy gets through the first 4 years with 85K miles...will you want another one then too?

Realize that with good regular maintenance (oil changes, etc.) a car really CAN last into six-digits of mileage. You can't expect any car to not need maintenance...they ALL do...stuff wears out.

Would you rather pay $500 for new brakes ONCE during the year, or keep paying $300/month on a newer car that doesn't need brakes....yet?

My DH and I always keep cars a very long time. First Chrysler we owned together we gave to my nephew after 8 years and 110,000 miles. I traded in a Volvo station wagon after 14 years and 154,000 miles. The car my husband drives right now (another Chrysler) is almost 9 years old and has 152,000 miles.

And I might add....the only maintenance we've done on my DH's current car is oil changes every 4,000 miles, two sets of tires, timing belts twice (should be done every 75,000 miles) brakes twice and maybe a few other minor things.

Keep what you have. Take good care of it. And enjoy the time WITHOUT a car payment, giving you the chance to plow that extra money into savings.

We typically pay off our vehicles, take good care of them, and try to save some $$ for our next one. That will probably be what we do with this one, but am concerned about the already high miles on this van. I am no longer doing the extensive commutng that caused us to put so many miles on so fast

 

[1PrincessMomma1]

I'm not trying to be snarky just posting facts. If you feel you need a new car then this is a good time to buy. However @ 85,000mi I don't think it's really needed. *If you have cash to put down why not pay down on this car and finish paying it sooner so you can then save up for a new car when you really need it?

 

[BridgetBordeaux]

DH's truck is a '98 that we bought new. It has 120K miles, is on its second set of tires and it's third battery. We change the oil frequently.
We made 48 payments and have been done for years.

My car is a 2002 station wagon we bought used in '04. It has 140K miles and we have had to have engine and AC work done to the tune of about 4500 bucks in the past few years. 3 sets of tires and 2 batteries so far.

Both vehicles have had brake parts replaced over the years.

We have one or no car payments for quite a while. Whether or not there are deals out there, the secret to keeping costs down is to hold on to your cars longer and pay for a few repairs along the way.

I admit the deals are tempting, but not having a payment for even a year can help you set aside a nice down payment for the next one.

85,000 miles still means your car has significant life left in it.

Someone like syndicated finance guru Clark Howard would advise you to drive it until the wheels fall off and then buy new wheels! I'm not suggesting you go to that exteme, but I think it makes a great point.

PS....we have AAA membership "just in case" we break down. The modest fee gives us peace of mind.

 

[msmayor]

We typically pay off our vehicles, take good care of them, and try to save some $$ for our next one. That will probably be what we do with this one, but am concerned about the already high miles on this van. I am no longer doing the extensive commutng that caused us to put so many miles on so fast

As I said previously and others as well....85K miles isn't really that high. I'm guessing that with regular maintenance, you can easily double that before needing to retire the vehicle.

And if you're not doing the extensive commuting you did previously and driving LESS per year, you could probably get another 7-9 years out of this van.

$3600 per year in payments vs. $500-$750 or so per year in maintenance. This is a no-brainer to me.

 

[Belle5]

I was listening to our local car show and our host is a renowned car expert.
Someone called his show and posed a question similar to yours. He told the caller (paraphrasing) not to buy one of the deals unless it was the right time for him to purchase a car anyway. He kept saying something like,"Don't buy until the time is right for YOU."

I really needed to hear that advice, too. My expedition has 174,000 miles and even though we weren't planning on buying a car for a couple more years these low prices really tempt me. I keep thinking about "what ifs"--what if my car starts having big problems soon and I will have missed all the great deals...DH assures me there will always be a good deal somewhere (I know he's correct)--when the time is right for US!

 

[Traveliz]

It's a matter of perspective but although 85,000 miles sounds like alot in my experience its not.

We are not car people and our "new" car (3 years old) has 70,000. My van has 210,000 and still going strong. Sure it has its eccentricities but its a solid vehichle not causing me any problems.

The least amount of miles any of our cars had being traded I think was around 130,000 and that car was old (13 years).

I would not even consider a new car while I had a car with 85,000 miles on it that I still owed on and was not giving me LOTS of trouble.

Good luck.
Liz

 

[1PrincessMomma1]

I was listening to our local car show and our host is a renowned car expert.
Someone called his show and posed a question similar to yours. He told the caller (paraphrasing) not to buy one of the deals unless it was the right time for him to purchase a car anyway. He kept saying something like,"Don't buy until the time is right for YOU."

I really needed to hear that advice, too. My expedition has 174,000 miles and even though we weren't planning on buying a car for a couple more years these low prices really tempt me. I keep thinking about "what ifs"--what if my car starts having big problems soon and I will have missed all the great deals...DH assures me there will always be a good deal somewhere (I know he's correct)--when the time is right for US!

I always hate it when a husband is right but I guess yours is LOL. I totally agree with him.

 

[chattyann]

We are driving a 1994 Corolla that has 226,000 miles on it. Cars, Trucks, and Vans get a lot of mileage out of them if you do the general upkeep on them. My little car is still in very good shape despite the miles. My vote would be put the money back for something in the future and keep what you have.

 

[rangermom]

I understand how you feel. My van has 110,000 miles and is running great. I currently need to do some normal wear and tear maintence that will probably cost us about $2000. It is really several small things. I have been tempted to try to trade in for a newer van and take that money and add it to a down payment. We owe less than 2 years on the van, so we are seeing the light at the end of the tunnel. DH and I have decided to get the small things fixed. We are actually going to try to challenge ourselves to reach 200,000miles on both of our vehicles before we get new ones. Hopefully we can stick to that.

 

[Darcy03231]

With 85,000 miles your van still has lots of life left in it. The last three vans we traded in had 171,000, 189,900 and 153,200 on them. I would keep your van, and keep up the regular maintenance. Once you no longer have a payment I would bank that money and then when you need to buy a car you'll either have it in cash or a big down payment.

 

[taitai]

WoW ! MAybe I will just withdraw this post. When you pose a question why do people immediately have to be so nasty? I am glad you are so superior and can look down your nose on someone just posing a question. Really. So snarky.

I understand I dont HAVE to act on this. I am considering if it would be better long term to have a car that lasts longer, that's all, and if this is the right time to try and down size and make this a financially sound deal.

What in the world was snarky?

There are deals out there now for every single item under the sun...travel, homes, cars, jewelry.... Just because they are there does not mean that each one needs to be acted upon. If you needed a new car, then yes, this is a great time to buy. However, you stated that 1) your car is not old; 2) it has relatively few miles on it; 3) it is in good condition and 4) you are not car people. So, there really does not seem to be a compelling need to get a new car irrespective of the deals. However, maybe there are other factors that you did not share with the board.

I will reiterate my opinion (which is, afterall, what you asked for). NEVER finance a depreciating asset. Once your car is paid off, bank the payments for either another car or a great vacation or some other item you really want (college education funds, a down payment on a house, etc.) No need to spend money on something that is not needed.

taitai

 

[DawnM]

85,000 miles???? For us, that is a new van!!!!

The best car is a paid for car that still runs well.

Our current cars have 150K miles, 75K miles, and 75K miles. We consider our 75K mile cars to be practially in new condition. And all are paid for! We also have a car fund going and hope to pay cash for any future cars.

Dawn

 

[PaulaSue]

WoW ! MAybe I will just withdraw this post. When you pose a question why do people immediately have to be so nasty? I am glad you are so superior and can look down your nose on someone just posing a question. Really. So snarky.

Sorry the post you are quoting is not a nasty tone.

 

[eyeheartgoofy]

I don't know. But, I'm guessing that 85,000 miles (although it seems like a low mileage vehicle to a lot of budget boarders) probably isn't considered low mileage for trade in value. I don't know that you would gain a whole lot by trading in your car now with a "high" trade in value vs. keeping it for a few more years. Just a thought.