Cash for Clunkers or keep my van???

[IDoDis]

I don't want to hijack another OP's thread regarding keeping a car or getting a new one, so here's my dilemma.

First of all, I keep my cars a long time. I have a '96 Geo Prizm with 90,000 miles on it that is my get-around-town car. Then, I have a 2000 Ford Windstar LX with 79,000 miles on it that I use with the family or with the kids & their friends. Kids are now ages 10 and 13. I hope to be able to give the Prizm to DD when she starts driving in a few years. DD can sit in the front seat now, so a smaller car would be okay even if there were a couple of extra kids along.

With the Cash for Clunkers, I could get $4500 for the Windstar and get a new Corolla. In addition to the $4500 , there's a $1700 rebate on the '09 models, but only a few '09 models are left. I could try to sell the Windstar van outright and may be able to get $5000 - $5500, but in this market, who knows. I may not get any buyers on my own. It has one year old tires on the back and 6 month old tires on the front. A couple of months ago I paid $350 to get something fixed with the engine (the check-engine light was on). If I do the cash for clunkers, the van is going to the junkyard.

Right now, there's nothing wrong with the van (knock on wood) and the mileage is not hight (well, maybe it's getting up there for a FORD). But at any given time, that darn check engine light could come on again, and I think the tie-rods are going out (again) which would cost $600 to fix. If I don't take advantage of the cash for clunkers, my luck would have it that something expensive goes wrong with the van and then I could only sell it for $3K. But, it's not ready for the junkyard and may last a while! The repairs on this thing come and go, but when something goes out, it's usually between $300 and $1000 to fix!

Should I keep the van and not get a new Corolla (and pass up the $4500)? Or, should I try to sell the van for more (which would mean I'd have to put another $100 into it to get it detailed), or just do the cash for clunkers? I'd only have to finance around $4K and could get that amount paid off in about 4 months. I hate financing though, and always pay cash.

What would you do in this situation?

 

[Darcy03231]

I'm doing the Cash for Clunkers. I have a 2001 Isuzu Rodeo which gets 14 mpg. While its been a great car, I decided to take advantage of the program as its not worth the $4500 I'll get. Luckily, with that and the money I have saved I can buy new without a payment, and will increase my gas mileage (almost double). If you only have to finance $4k and can get it paid off quickly I'd go for it.

 

[castanhope]

I have the same van with about 120,000 miles on it. I'm planning on driving it for another four years. The longer I go without a car payment, the better! Sure the check engine light has been on for about two years, and the oil leaks...but I drove it to Florida and back in June and it's still going strong, knock on wood! Good luck!

 

[ChrisinNJ]

I had a 2000 Ford Windstar SEL with 90,000 miles on it, that got totalled on our way home from Disney. My insurance gave me $5900.00 for it. A few dealers I spoke to were impressed saying I would never have gotten that much $$$ for trade in.

I had every intention of keeping the car, but with the new program, I might have traded it in now.

One other thing to consider...With the Cash for Klunkers plan, do you have to pay sales tax on the full amount of the car you are buying? or is it like a trade in value where you pay tax on the total after $4500.00 off. Because if you sell the car yourself you will have to pay the full sales tax amount...that is a few hundred dollars on top of detailing to figure in....

Good Luck whatever you decide.

 

[madge]

we have a '99 Windstar with 150,000+ miles on it... we're hoping to get 6 - 12 months out of it before getting something new to us. since that will be a used Honda or Toyota van, we won't be doing the clunker thing.

 

[ceecee]

I've got the same van. You would be lucky to get that much for it, Ford Windstars do not hold their value. I have put tons of $ into mine and will drive it until the next $2000 repair! Last year I was told they couldn't get a part for four months for it, I called Ford and miraculously one was found. I paid $1800 for the repairs (manifold I think) and it was the second time it was fixed due to Ford making plastic parts now they are metal and won't warp I guess. My van has closer to 100,000 on it, so if I were you I would drive it until it was F.O.R.D.! Found On the Road Dead.

 

[disneybound31]

ok, i'm clearly in the dark... what the heck is cash for clunkers?
gov't program?

 

[mrsboz]

Dont' want to jinx myself. I LOVE my Ford Winstar - 98. I was told two years ago to look for a new car. I decided to wait it out and see if it died. Thank goodness it hasn't. It has over 120,000 miles on it and still going strong. Runs beautiful. I love the fact that I don't have a car payment and I'm not telling the kids not to spill or get it dirty. I don't care what they do to it. My husband is the one with the spotless car. I hate having a new car because then I am so cautious that it doesn't get dirty this way I don't care. Every day I get out of my car is a bonus. Keep driving it while you can. I think that they are awesome cars. I LOVE mine.

 

[IDoDis]

Thanks for all of the input.

I'd probably break even with the $4500 and would not have to mess with selling the van myself. The thought of it going to the junkyard when it's got such low mileage is a bit disturbing though, but I am very tired of that van! I guess I'd feel better about it if it had more mileage and had a bunch of stuff wrong with it.

I researched the tax issue that a PP mentioned and couldn't find any info. I would guess that the tax would be applied AFTER the $4500 is taken off, but I'll need to clarify that with a dealer. Excise tax here is If I sell the van myself and get more money for it, I would then buy a 2 year old Corolla and not have to finance any of it. Decisions, decisions...

Info on Cash For Clunkers:

http://www.cars.gov/

 

[SandrA9810]

I guess it depends on how much life you think the car has. Kari asked her parent's for the family van when she graduated High School... could've had any car she wanted. And she still loves that van just as much today, and says she'd rather put 5,000$ into her van rather than into a new car because the 5 grand would make her van run just as good as any new car, but it'd still be her van. And it's got over 205,000 miles on it.

 

[Cindy B]

I'm doing the Cash for Clunkers program. I have a 1999 Jeep with 130K miles. I paid cash for it. I can't sell the car for $4,500 (due to age and miles) so for me it is a no brainer.

I was looking at a 2010 Prius, but the program incentives aren't great. As much as I thought the Prius was interesting, I am leaning toward a Camry instead. With the Camry I get the $4500, a $1000 cash back, a $1000 recent college graduate incentive PLUS a lower interest rate if I choose to have payments. Depending on what other 2009's incentives are there, I could get a lower cost car and pay cash for it.

I want to spend anywhere from $8 to 15K-preferably lower! in cash for it- I have actually saved cash for it so for me this is a replacement. If I see something I like which is slightly higher I will get a loan for a small amount (5 K) just to cover it.

 

[blondietink]

Are your sure you will be happy with a small car instead of a mini-van? We are on our 2nd mini-van and don't think we could live without one, especially going on a vacation and/or towing our jet-ski.

We bought a Hyundai Sonata recently (love it) and we had to pay sales tax on the entire price before any rebates were subtracted. I would assume this would be the same in most states.

 

[santa's surpriz]

I'm doing the Cash for Clunkers program. I have a 1999 Jeep with 130K miles. I paid cash for it. I can't sell the car for $4,500 (due to age and miles) so for me it is a no brainer.

I was looking at a 2010 Prius, but the program incentives aren't great. As much as I thought the Prius was interesting, I am leaning toward a Camry instead. With the Camry I get the $4500, a $1000 cash back, a $1000 recent college graduate incentive PLUS a lower interest rate if I choose to have payments. Depending on what other 2009's incentives are there, I could get a lower cost car and pay cash for it.

I want to spend anywhere from $8 to 15K-preferably lower! in cash for it- I have actually saved cash for it so for me this is a replacement. If I see something I like which is slightly higher I will get a loan for a small amount (5 K) just to cover it.

Ditto, I have 1998 Jeep Grand Cherokee 165k miles and no A/C. I love to get $4500 for my car. I have in the market for a while, but dread having a car payment again. I am in the same boat as you when it comes to the incentives and have thought the same thing although I am looking at a more gas economical SUV. I have been looking at the Nissan Rogue that looks pretty nice.

 

[KnightFarms]

I'm going to look in to it because I'm driving a 1999 Suburban with 150k on it... We bought it at an auction, and it's paid off, but it's also breaking periodically.

I know I wouldn't get 35-4500 as a trade in for it. And I'm pretty sure I couldn't sell it for that without fixing some things.

 

[3boymthr]

To OP, well, according to Kelly Blue Book your van, in excellent condition, is only worth $2,900 retail so the $4,500 is a good deal.

We are doing Cash for Clunkers, here's how we're working it.

New GMC Canyon 5 Passenger Truck - $23900
Less:
Dealer Discount $600
Rebate $1,000
Cash Incentive $1,000
DH 1992 Ford F150 Pickup Paid $1200 two years ago - current retail value $600 - Cash for Clunkers allowance - $4,500 (For once DH actually made a good choice when he bought a POS )
DH 2003 Ford E-150 Van - Retail Value $5,000 Trade in $4,000 (needs major engine work so $4,000 is a good price)
Total amount to finance $12,800.

Just in case anyone is curious you can trade in two (or more) vehicles to get the new car but only one is eligible for the clunker discount. And they can't factor the cost of the clunker into the negotiations for price on the new car. We put a $350 deposit on the new truck and are just waiting for the program to start then we'll pick up our new truck

Also, be aware that the car you are buying with Cash for Clunkers MUST have better mileage than the car you are selling and the amount you get is based on the difference in mileage between the two vehicles. So, for example, trading a 2000 Corolla (although it qualifies on age) for a 2009 Camry may not qualify for the cash for clunkers trade in but a ford f150 - super choice!

 

[runwad]

We're doing the cash for clunkers too, we have a 1985 conversion van that we still drive around town but not too far just because it's getting old, but still low mileage for it's age, 77k. But I was under the impression along with the 4500 we could write off the sales tax of a new car off our taxes, does anyone know if that will hold true in addition to the Clunker plan? Also DFIL worked for GM so if they still do the employee pricing we may get more off a new car but I'm not sure if that program is still in effect either so anyone who can clarify I'd appreciate it.

OP if I were you I'd do the clunker plan and get something w/better gas mileage...I think we'll see those high gas prices again once things in the economy get back to normal.

 

[disneybound31]

Okay - here is our deal... DH has a total POS 1993 Toyota 4-Runner with 205,000 miles, no air conditioner, and check engine light on for YEARS! Seats are all rippe dup from our 13 years of use and it smells horrible- no idea why. Lost it's muffler and DH had catalytic converter taken off last year just to get it to start. I know, I know, the emissions are killing us all, but luckily DH uses a very nice work truck to get to and fro and I only let him drive the crap car when absoutely necessary. Like once per month at most...

KBB on this car is less than $1000 last I checked and that is when it had air and a muffler.

We, too, have lived a long time with no car payments and hate having them... but we may have to take this deal. Is anyone having any luck finding any 08's that are new on dealer lots? That may be the only way we can get a cheap enough replacement truck (and DH has said when he does replace the SUV he wants an actual truck with seating for 4 so we all fit and he can still haul stuff). We were talking about trading or selling for scrap and buying a new truck for him next summer anyway-- guess it wouldn't hurt to do it this fall instead.

 

[trip]

We're doing the cash for clunkers too, we have a 1985 conversion van that we still drive around town but not too far just because it's getting old, but still low mileage for it's age, 77k. But I was under the impression along with the 4500 we could write off the sales tax of a new car off our taxes, does anyone know if that will hold true in addition to the Clunker plan? Also DFIL worked for GM so if they still do the employee pricing we may get more off a new car but I'm not sure if that program is still in effect either so anyone who can clarify I'd appreciate it.

OP if I were you I'd do the clunker plan and get something w/better gas mileage...I think we'll see those high gas prices again once things in the economy get back to normal.

Looks like your '85 van just qualifies by date - Your vehicle must be less than 25 years old on the trade-in date.

 

[ceecee]

I was told by the dealer that we needed to get a car with at least 5 mi better than what we have. Our Windstar (according to the chart) is at 18 and the Honda CRV is 22, so that wasn't enough. Our Windstar gets 14 but 95% is in town driving.

 

[IDoDis]

I would keep the van and every month put a "car payment" in a special bank account for when you need to replace it.

I could pay cash for the new car, but don't want to deplete too much savings. I'm just worried that when something does go wrong with the van (not "if" but "when") then I won't be able to sell it for very much and the clunker incentive money will be all gone. Then I'll be kicking myself. If I do get the new one, I'm going to check on swapping out the tires for some old ones and then I'd sell the new ones to pick up a little more cash.

We're doing the cash for clunkers too, we have a 1985 conversion van that we still drive around town but not too far just because it's getting old, but still low mileage for it's age, 77k. But I was under the impression along with the 4500 we could write off the sales tax of a new car off our taxes, does anyone know if that will hold true in addition to the Clunker plan? Also DFIL worked for GM so if they still do the employee pricing we may get more off a new car but I'm not sure if that program is still in effect either so anyone who can clarify I'd appreciate it.

OP if I were you I'd do the clunker plan and get something w/better gas mileage...I think we'll see those high gas prices again once things in the economy get back to normal.

When the prices go high, I almost exclusively drive the Prizm. The windows aren't tinted so it gets hot in the summer, and run like a jet engine (really loud) in the winter. My mechanic said there was nothing wrong with it though.

I was told by the dealer that we needed to get a car with at least 5 mi better than what we have. Our Windstar (according to the chart) is at 18 and the Honda CRV is 22, so that wasn't enough. Our Windstar gets 14 but 95% is in town driving.

To get $4500 you'd need a 10 mpg difference. Maybe it's 5 mpg for $3500. According to the govt. website
http://www.fueleconomy.gov/feg/findacar.htm the Windstar gets 17mpg city/hwy, so that should work for you. Maybe your year's mpg is different?? I WISH i got the 18mpg in the city that the van is claims to get. I always thought something was wrong with mine because I typically get about 12 mpg in the city, but after talking to other Windstar owners, hardly anyone gets 18mpg in the city.