My car has $1500 worth of repairs due to it right now, just spent $500 on Monday, mechanic says I will need to spend $1000 more in the nect six months. Is it worth it to repair it or invest in a new vehicle? The Vehicle is worth $2,500 right now and has 165,000 miles on it. 1998 Honda Accord. This is the first major problem I’ve had in 10 years.
After 10 years are you surprised the car needs repairs? You don’t say what the problems and suggested repairs are so there is no way to give you an opinion.
If $1,500 keeps it going for a few more years that seems like a good deal to me. If you are ready for a new car and the payment that comes along with it then perhaps it is time to start shopping for a new car.
You should expect about $1,500 a year in repairs now that your car is 13 years old and has 160K+ miles on it. A new car payment is about $5,000 a year.
I agree with UncleTurbo. What else are you going to buy with $1500? A newer car car is tempting, but it will increase your insurance and registration fees, cost more than $1500, and who knows what repairs it might need. If this mechanic is at all trustworthy, see if you can get an opinion on the general condition of your car. Is it rusty, bent, is the transmission leaking or slipping, is the timing belt due for replacement, are the suspension parts safe?
[b] If you are ready for a new car and the payment that comes along with it[/b] What are car payments? I have owned cars since the early 60's and the only time I made car payments was when I bought a car and they were offering no interest on the first 6 months. I paid it off in the 6th month. We live in a society that we seem to assume debt. When I was young I did not have expensive cars, but by the time I was ready to retire, I owned my home and car had two kids though collect and no debt. It was something my father taught me and I taught my children. It may not be easy, but it is worth the effort.
The thing people don’t realize is they should tuck at least $100/month towards repairs or another vehicle especially when payment if any ends.
You just are off guard a little. $1500 is not extraordinary for a 10 year old vehicle irregardless of name badge on front.
I am willing to bet that what you are calling “repairs” are actually routine maintenance for a car of this age and mileage. What exactly does this car need done?
Never use the word “invest” with a new vehicle. It is not an investment, it is an expense.
I agree that more information is needed - before providing a response - in terms of the types of repairs being suggested. Also, if the car has not been regularly maintained, it’s not surprising of such expenses, particulary with a 12-year old car. You might also want to take it to an independent inspection shop (i.e. AAA inspection centre) for an inspection of the entire vehicle to determine what repairs / costs you can expect over the next several months and whether current / suggested repairs are legitimate.
What does that have to do with the previous comment? Making a payment or not, cars aren’t free. You’re either pulling the cash out of investments or making a loan payment at a very low interest rate.
Do you want a cookie or something or do you just like bragging?
Your either pulling the cash out of investments or making a loan payment at a very low interest rate??? WRONG…Ive never had to do either. NO COOKIE FOR YOU
The fact that you didn’t have the cash you paid for a car invested doesn’t mean you didn’t lose investment capital just as a house you have paid off isn’t free compared to rental housing. In the house situation you have to figure out what the value of the house would generate per month plus the cost of upkeep and taxes versus what the rental housing would cost. There is no free money.
No vehicle is an investment, unless you can somehow find a mint condition Dodge Hemi Cuda convertible(or some other ridiculously low number production vehicle from the muscle car era) that someone has kept in their garage for the past 50 years, and still runs just as good as the day it was made, and the owner doesn’t realize what they have and only want a couple grand for it.