Should I fix my transmission or buy a new car?

[mefordis]

I think the standard, financial rule to apply is to determine what the car is worth with the repair. Is the car worth $1600 if repaired? If it is, then it is worth fixing it.

I disagree because I don't like to go in debt for cars. They are not assets - they are liabilities. Therefore, if it costs $1600 to repair and I have $2000 to my name, I'd repair the car so I have something to drive. I would then save my money because I would know that the car is getting up there in miles and I will soon need to buy another. I don't like owing car payments, though.

 

[Judique]

I'd rather have a car payment than a credit card bill......

 

[mefordis]

I'd rather have a car payment than a credit card bill......

I'd rather have neither. A mortgage is about all I can stomach. However, most people do not have the money to pay for a car outright. I just think buying used in this case is the best bet.

 

[spinandmarty]

you need to decide are you putting more into it to keep it going, then what it would cost you in monthly payments' I really dont worry about miles that much... my last 4 vehicles have all had between 250,000 to 280,000 miles all still running good when I got rid of them....

 

[tvguy]

I think the standard, financial rule to apply is to determine what the car is worth with the repair. Is the car worth $1600 if repaired? If it is, then it is worth fixing it.

I have never considered the value of the car if I sold it. I have considered how many more miles the repair will get me. I've put 2 transmissions in my 29 year old car.

 

[tvguy]

I'd rather have a car payment than a credit card bill......

My mechanic doesn't take credit cards.

 

[Judique]

I'm running two older vehicles right now. 2004 and 2009. Daughter has a 2013 bought new.

I've put a $2000 transmission repair into a vehicle and it bought me a couple of years, if I remember correctly. That vehicle is gone now.

Don't need a new car but guess what? I want one, so I'll probably buy something soon. I won't pay cash. I'll make payments and I'll probably buy new. I do keep my cars for awhile. Interest rates are so low on cars I see no need to pull that much available cash out just to pay cash? Seems to me it's best to leave that money where it is earning more money....

New cars have a lot more tech then my older models. I'm ready for that. I tend to like all the bells and whistles.

 

[manning]

you need to decide are you putting more into it to keep it going, then what it would cost you in monthly payments' I really dont worry about miles that much... my last 4 vehicles have all had between 250,000 to 280,000 miles all still running good when I got rid of them....

In the 50s 60s you started to look for car when you reach 50-60,000 miles.

Today at 150,000 plus you are just starting to break it in. Cars today are built by robots resulting in tighter/higher tolerances.

 

[Hikergirl]

I put a used transmission in a 7 year old car. Its now 14 years old and still going. We don't own it anymore but sold it to a friend.

 

[tvguy]

I'm running two older vehicles right now. 2004 and 2009. Daughter has a 2013 bought new.

I've put a $2000 transmission repair into a vehicle and it bought me a couple of years, if I remember correctly. That vehicle is gone now.

Don't need a new car but guess what? I want one, so I'll probably buy something soon. I won't pay cash. I'll make payments and I'll probably buy new. I do keep my cars for awhile. Interest rates are so low on cars I see no need to pull that much available cash out just to pay cash? Seems to me it's best to leave that money where it is earning more money....

New cars have a lot more tech then my older models. I'm ready for that. I tend to like all the bells and whistles.

LOL. OLDER CARS? My NEW car is a 2003, purchased new. Has 139,000 miles DW's car is a 2000, 118,000 miles. Our family car is a 1987 with 151,000 miles. Not sure exactly how many miles are on my 1965 Mustang. Original odometer said 56,000, the one put in during the restoration says 26,000, all I know is it has 400 miles on it since a complete frame off restoration (new engine and transmission)

 

[Gumbo4x4]

I think the standard, financial rule to apply is to determine what the car is worth with the repair. Is the car worth $1600 if repaired? If it is, then it is worth fixing it.

That's why we opted not to spend $1,800 fixing our $1,500 car, but DID spend $2,250 fixing our $12,000 car.

Edit: that repair was 26 months ago, so it's worked out WAY better than a car payment

 

[Gumbo4x4]

I disagree because I don't like to go in debt for cars. They are not assets - they are liabilities. Therefore, if it costs $1600 to repair and I have $2000 to my name, I'd repair the car so I have something to drive. I would then save my money because I would know that the car is getting up there in miles and I will soon need to buy another. I don't like owing car payments, though.

Another option is to scrap the current car for $500, and put your $1,600 (or $2,100 with the extra $500) into a similar car that runs.

 

[mefordis]

Another option is to scrap the current car for $500, and put your $1,600 (or $2,100 with the extra $500) into a similar car that runs.

You could do that, but would also be taking a gamble on that $2100 car that a major repair might be right around the corner.

I'm just a believer in living within your means. If you need a loan for a car you cannot afford the car.

 

[amcnj]

You could do that, but would also be taking a gamble on that $2100 car that a major repair might be right around the corner.

I'm just a believer in living within your means. If you need a loan for a car you cannot afford the car.

One can still live within their means and have a car loan, especially these days with the 0% financing options often available.

 

[Gumbo4x4]

You could do that, but would also be taking a gamble on that $2100 car that a major repair might be right around the corner.

True, but you're taking the same gamble when you repair your own car. And I know the whole "devil you know", but still.

 

[Livvie]

You could do that, but would also be taking a gamble on that $2100 car that a major repair might be right around the corner.

I'm just a believer in living within your means. If you need a loan for a car you cannot afford the car.

We could afford to pay cash for a new car, we just choose not to. We bought a new car right before Christmas and got 0% financing, along with a great price for a trade in and dealer incentives. Why would we outlay that amount of cash at one time when we don't have to?

 

[smiths02]

We could afford to pay cash for a new car, we just choose not to. We bought a new car right before Christmas and got 0% financing, along with a great price for a trade in and dealer incentives. Why would we outlay that amount of cash at one time when we don't have to?

I see your point, and I don't question your decision, but to be devil's advocate.
You now have risk.
A person could miss a payment accidentally and have to face penalties, etc. A person could say I have $15k in savings and I can afford all my payments, I'll go to Disneyworld, and then this person loses her job...well then the car payment becomes a problem. A person could get in a car accident and the car is totaled...the insurance company will give her $15k and she owes $18K...she is now paying $3k for a car she doesn't have (of course, depreciation insurance can cover that, but then that is another expense).

 

[Livvie]

I see your point, and I don't question your decision, but to be devil's advocate.
You now have risk.
A person could miss a payment accidentally and have to face penalties, etc. A person could say I have $15k in savings and I can afford all my payments, I'll go to Disneyworld, and then this person loses her job...well then the car payment becomes a problem. A person could get in a car accident and the car is totaled...the insurance company will give her $15k and she owes $18K...she is now paying $3k for a car she doesn't have (of course, depreciation insurance can cover that, but then that is another expense).

We can afford it, even if all those things happen. But they won't, because our payment is taken out automatically, and fortunately, our savings is more than adequate to cover any possibilities you mentioned in your post.

 

[smiths02]

I disagree because I don't like to go in debt for cars. They are not assets - they are liabilities. Therefore, if it costs $1600 to repair and I have $2000 to my name, I'd repair the car so I have something to drive. I would then save my money because I would know that the car is getting up there in miles and I will soon need to buy another. I don't like owing car payments, though.

Another option is to scrap the current car for $500, and put your $1,600 (or $2,100 with the extra $500) into a similar car that runs.

Right, that is the strictly financial answer.

 

[tvguy]

Another option is to scrap the current car for $500, and put your $1,600 (or $2,100 with the extra $500) into a similar car that runs.

I guess you could sell it, but scrap value....at least around here...is about $75