Hi everyone,
Regarding my 2014 BMW X1 with 85k miles:
I just had to replace an alternator due to oil leaks, and replaced original battery and brake fluid flush, totaling about $2250.
Now it needs $2500 more invested: thrust arm bushings, valve cover gasket, oil filter housing…
How do you decide to continue to invest in a car versus selling it?
Like most folks in these crazy times, I don’t need a fancy BMW anymore (purchased used, when I had a long commute and wanted a safe and snazzy car), and now only drive it locally with a weekly trip maxing at 45 miles an hour.
Thanks for thoughts!
They are expensive to repair.
Everyone has different thoughts as to sell or keep . If this is your only vehicle you will not find a resonable priced replacement . 2500.00 repair on a BMW is normal . That stuff needs fixed before you sell it anyway or that amount or more will be taken off the selling or trade in price.
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Who recommended the repairs? Do you notice any change in driveability from the thrust arm bushings? I imagine oil leaks are the issue for the valve cover gasket and oil filter housing. How much oil do you need to add between oil changes? Unless you add oil every 1500 miles or less, you probably don’t need to do the oil related repairs.
I consider the cost of the repairs–and the probability that these repairs will result in long-term reliability–versus the cost of the alternative (typically buying a different used car and then doing whatever repairs/deferred maintenance that car needs).
So for example, if I had a car with very high miles, body damage, etc. then it wouldn’t make sense to put anything more complicated than oil changes, batteries, belts, and hoses into it, because the probability of long-term reliability is too low. On the other hand, a car with low miles, excellent body, etc. could justify spending thousands of dollars to rebuild the engine or transmission, etc–especially if I really like the car.
Therefore, the question becomes “How much do you like this car?” and “What is the cost of the alternative?”. If the answer is that you are tired of this car, and don’t even need or want a car right now, then by all means get rid of it and don’t put another dime into it. If the answer is that you still like this car, and the alternative is buying or leasing a new car, then it makes sense to do the repairs.
It’s hard for me to relate to your question, because I don’t buy luxury cars, and I try to DIY as much as possible. So for me, faced with the prospect of putting $2500 into an old car, or buying a different used car would be very different math than it would be for you. I can buy running used cars for less than $3k all day long, with no rust or body damage, but they probably aren’t models you’d want to drive.
That is true!
Thanks for this perspective. It’s been a good solid car. Might just be time to do maintenance - albeit expensive.
I got two quotes - from BMW and from a well respected small shop near me that does foreign cars. The alternator failed due to an oil leak. Must say I don’t understand enough to say these other repairs are in the same area - above the alternator which might cause additional concern. I can ask more questions. Thank you.
Never invest in a car or consider a car as an investment.
As Ray once said,
“Never buy a car as an investment. Buy a car to drive. That way, you’ll limit your
disappointment to only one area.” — Ray
Tester
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Thanks for your thoughtful reply. It might just be time to invest in needed repairs for the age of the car. It’s a good solid car, but as you state, I don’t need a “luxury” car (never did, but I sure felt safe in it when doing a significant commute). It’s time to decide to invest in this one, the “devil you know” kind of thing, at the higher rate of repair for a fancy car, buy another used with its unknowns, or invest in a new car that will have a new monthly expense with a car loan.
Thank you everyone for your thoughts. Great resource to consider perspectives from folks who understand cars.
Haha so right. Wished it could be a paid-off simple asset. (Final car payment was just weeks before the alternator died.) But it’s a machine, that will need continued maintenance and care.
The only thought that came to mind was why does it need so much work if you don’t drive it anymore? So I guess the answer is they are expensive to maintain. And do you like it? Would you get another car to drive? If you like it and would just trade it for something else, why bother, but be assured this car will not be trouble free and will be expensive.
For me it has usually been a “last straw”-“picked a fine time to leave me loose wheel”. Or just sitting around gathering dust for a few years and decided to clean the garage.
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If the assumption is made that the vehicle is free and clear with no money owed on it, my vote would be to keep it as it has low miles for the age. There’s also the current state of car prices which are very high.
Do not count the battery and brake fluid change as a strike against it. That is normal maintenance which every car is subjected to.
If the car is not going through a fair amount of oil and not leaving a spot, or puddle, on the floor and considering the sparse use of the car I would say repair the thrust arm bushings and not mess with the V/C gasket.
The oil filter housing gasket might be a good idea. I do not know how that gasket is plumbed into the car but many of them have engine coolant running through them also. An external oil leak is not that big a deal but engine coolant mixing with motor oil could very well be a big problem.
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Assuming you still like the vehicle and no other problems (rust, high mileage, etc.) my general rule is to compare the cost of repair to the monthly cost of a new vehicle.
If the cost of repairs are equal to or less than the cost of 6 months payment on a new vehicle, easy decision, do the repair because it will probably be trouble free for at least 6 more months.
On the other hand if the vehicle is pushing 200,000 miles, 15-20 years old, starting to rust or you just don’t like it, start looking for a replacement.
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Thanks for your thoughts. It’s not leaking oil that I can see.
It’s treated me very well til now. If the two 2500 expenses were in different years it would be an easier equation! Thanks for this perspective. I should consider myself lucky to have a car that keeps a good value.
The car is definitely worth repairing, and if you don’t drive it much but need a hauler for occasional use, an older X1 that is no longer depreciating by the millisecond is a good choice.
That being said, paying other people to do maintenance on a BMW after it goes out of warranty is usually a questionable financial proposition.
Did you buy this vehicle new? Are you SURE it has only 85k miles on it? I am no X1 expert but these repairs are generally not required until after 100k miles.
I have owned 5 BMWs, all of which went over 200k miles, but I have done all the repairs that you mention myself. Ownership of an older BMW can be great, but it is the domain of folks who have a garage to work in and a reasonable set of tools.
While my “6 months of payments rule” is just a general guide it can also be helpful for high retained value vehicles.
Using the most optimistic assumptions your X1 has a Kelly Trade In value of $10,000, a new X1 will cost $40,000 (exclusive of taxes, etc.), leaving you with a Net Cost of $30,000 and a 5 year payment of $550/month.
You already paid $2,500 in repairs which was below the “6 months of payments” guide but these are “Sunk Costs”, the money’s already gone so it should have no effect on your current and future decisions.
So now you’re looking at $2,500 in new repairs which is a new decision and should be evaluated independently.
“Will the new $2,500 expense be less than 6 months of payments on a new vehicle?” and of course will be dependent on your choice of your new vehicle.
For example, assuming all of the above but instead of replacement with a $40,000 X1 you may decide on a $25,000 Hyundai Kona with a net cost of $15,000 and a monthly payment of $300, your decision may be different.
And BTW, regardless of the above there’s nothing “wrong” with dumping a vehicle that you don’t trust, don’t like or just plain want a new vehicle. Life’s short and uncertain so if you always wanted that Corvette and can swing it, go for it. 
Let’s not forget the frustration factor. The OP’s current vehicle is expensive to maintain by nature and likely to remain so. On average, a late model Honda or Toyota will cost less to operate. $2500 over 6 months works out to a monthly payment of about $400. Figure upper $20k’s depending on trade-in.
I don’t use any math formulas to decide, but from my own records over the past million miles or so, if you are going to pay a large repair bill like for a transmission, I like to see enough miles driven afterward to justify it. How’s that for a run-on sentence. So if I spent (which I did) $3000 on a transmission on a car worth $2000, putting on an additional 200,000 miles made it worthwhile. From my records though looking back, it would have been better to dump the car at 350,000 instead of running it to 520,000. No easy answer. Your results will vary as the stock brokers say. Do what you like.