CSA, so when does “instant gratification” get to the point where you are too old to enjoy life and the experiences thereof? I’m not telling the guy to go crazy, I’m saying that life is short, enjoy it, but do it sensibly financially. If you’ve wanted to drive a Mercedes your whole life and keep deciding you’ll wait until whatever sensible financial goals you have set have been met, you never drive it. Then you die. So, great you were financially sensible your entire life, yet you put off any experiences until you may not even be able to enjoy them. There is a middle ground here. I think it’s great that some people are happy driving their car until it dies, but it’s not my thing. But I also don’t think he should go buy a blinged-out pickup, or get a loan at 14% due to bad credit, or buy a car with 120,000 miles on it that’s been detailed to death to cover up all the mechanical flaws with the car. I’ve got a niece that’s done all these things and she and her hubby make about 25K a year. Now that’s the other extreme. Again, there could be a happy medium that could satisfy this person and make financial sense and allow them to buy a car they want. Never have a car payment again? That’s great for you, but that’s the other end of the extreme from my niece.
Little would be lost never owning a Mercedes compared to improving one’s finances.
I’m old school. I think people should make payments on the other end. Your car has enough life left. If you pay your car off and save for the next, you will be much further ahead. Why not open a new car account ? Now !
Cars are ALWAYS poor investments…the is no return, They are expendables you need to get the maximum productive life out. Take good care of the car; it’s decent enough to go 150K or more if you do. Anything you can do to keep the body in good condition will mean $$$ in your pocket trade in time.
@UsedEconobox2UsedBMW…amazing !!! Wish I spent more time studying cars to get to know the people who drive them…wasted my time in psych class.
Texases Says, “Little would be lost never owning a Mercedes compared to proving one’s finances.”
I agree, completely. I know I wouldn’t enjoy any car that I don’t own, yet (loan and payments), compared with almost any car that I own free and clear. Besides, money can be used elsewhere, on a nice house, travel, sports and hobbies, etcetera, or simply save and invest the money so that things desired can simply be paid for at purchase.
I’m not even saying don’t ever buy a nice, expensive car. I’m saying work your way up by carefully using your hard earned money. It worked for me.
I guess not everybody’s “wired” the same way.
CSA
"Little would be lost never owning a Mercedes compared to improving one's finances. "
@texases - exactly.
If you can afford a Mercedes or a Lotus (and are a dwarf), more power to you.
I even really like cars but especially modern cars are all just driving appliances, like toasters are cooking appliances.
Some are nicer than other but in the end, all they do is serve a function.
A toaster’s function is to toast your bagel in the morning without burning your house down.
A car’s function is to get you from A to B safely.
Pay the car off and save for a next one while this one fails.
If you’re happy with the car you have now and think you will be for the next several years, I suggest paying it off and keeping it for the long haul while putting money back each month for a down payment on another car when needed/wanted. I too have paid cash for the last several cars I’ve bought. Most people who drive expensive cars are head over heels in debt on them where the person who drives the 4-5 year old Ford or Chevy might be debt free. Lots of times people will go into debt on houses/vehicles to make it look like they are rich when in reality they DON"T own anything, it all belongs to a bank.
I’d like to just chime in by saying that I have a 2003 Elantra GT with 316,000 miles on it. That’s not a typo. Three hundred sixteen thousand miles. I have been car payment free for four years and this car just keeps going. It’s a 5-speed manual with the original clutch. Your 2006 is still a baby. Change the oil, don’t neglect the routine maintenance, and try to keep the RPM’s below 3000. Now, most of my miles are highway miles, but she starts every day and I still get 36 mpg highway. I’ve told Hyundai about it and they gave me a $300 coupon for maintenance in a letter from the CEO saying “keep going!” Don’t know what the record is for a Hyundai, but I’ll keep her on the road as long as she’ll let me.
Even with comparatively low miles the bluebook figure might be a bit optimistic to put it courteously.
My vote would be to keep the car. You know what you have there as compared to an unknown future with another vehicle.
I thought this was a car forum, but apparently it’s a financial forum for seeing how long you can keep a beater car running without having to buy another car. Enjoy your cars with 300,000 miles on them, I’ll enjoy the ones I get for a good deal and not worry about an occasional car payment while I actually enjoy a modern day car. To each his own.
Oh, it’s an EVERYTHING forum.
And the only point here is to buy what makes good financial sense, not the max one can get a loan for. It’s easy to buy waaaaay too much car, it happens ALL THE TIME. For no good reason.
@golfdawg11 everyone is entitled to their opinion for their own reasons. Remember the old saying, opinions are like assholes everybody has one and they all stink. I have 7 cars, the mileage on them range from 32K-518K and I seldom trade one in when I buy another, I keep it and drive it till it’s wore out. The original post was asking our opinion, just because we give an opinion it doesn’t mean the person asking the question will/won’t take our advice. Personally since one of my cars is now at over 1/2 million miles on the original engine/transmission it’s exciting to me to see just how many miles I can get out of it. Each time it hits another 100K miles it’s as exciting as driving a new car off the lot. Surprisingly it probably has less break downs than the average car with 100K miles, because I spend the time and money to keep it maintained and in good/safe operating condition. Most of the normal wear parts cost me nothing except my time changing them when they wear out, because I replaced them years ago with parts that have a lifetime warranty. I’m not the type person who thinks he has to keep up with the neighbor down the street driving a new Mercedes and is $100K in debt on something that does the same thing my car does, takes him from point a to point b and hopefully back to point a and he’ll probably be tired of in 1-2 years. People buying things they couldn’t afford to pay for has had a large impact on the condition our economy is in now. 13 years ago I was working making good money, but I had an accident that left me disabled and had to fight 5 years getting my disability approved, if I’d had a $1500. house payment and $800. car payment I’d have lost everything I had, but since I lived comfortable in a house that was paid for and drove cars that were paid for I didn’t lose anything and was able to keep my family fed and clothed on money I had put back when I was making good money. That’s the problem with most people, they aren’t happy with what they have even when they’re $200-$500K in debt, they still want more.
Occasional car payment? I didn’t know financing worked like that. I was under the impression that someone signed on for a fixed number of months and failure to adhere to that schedule led to a dinged credit report and the affixing of the car to the back of a tow truck as it’s hauled off.
Perpetual monthly payments with accrued interest is not always a good deal.
Enjoy your cars with 300,000 miles on them
I will…When my vehicles get too expensive to run…or untrustworthy then I’ll get a new one (or slightly used one). Right now my 05 4runner with over 210k miles is running PERFECT. The ONLY issue besides normal maintenance is I’ve had to replace the front calipers a couple of times. It’s a design flaw in the calipers and noone makes an aftermarket caliper that’s better…also had to replace the stereo head-unit. If you’re having major problems with your vehicles before reaching 300k miles…then sorry…maybe you should consider a different brand or mechanic.
Great counterpost by GolfDawg.
I drove econo-boxes for over 2 decades, long after I could easily afford any new car I wanted. I was all about minimizing cost and getting the best “value”. And saving. I drove used Civics, Accords, Sentras, etc.
Then, I finally decided to drive a better car once I decided used Japanese cars were overpriced and overrated. Now, in middle age, I LOVE driving a “good” car. Man, it is night and day! Killer styling. Tons of power. Everything is just better, tighter, nothing feels cheap. I even ENJOY spending money on repairs. I might even buy a 2nd car, just because! The difference is so huge, that I almost don’t consider them the same category.
I have also learned how to do basic repairs. So, now, it’s a hobby. I may buy a lift and a pro set of tools, just for some fun experiences. I don’t really care what it costs. Still cheaper than a typical vacation, yet it will provide 2 decades of “fun”.
A used BMW in mint condition sells for cheaper than a Honda Accord. Hondas are now overpriced for what you get, and they are vastly overrated in terms of reliability. I will never drive an econobox again, even if I am laid off. For me, the small premium to drive a whole different caliber of car is money well spent. One can not be talked into this, but when the time is right in your life, and you like cars even an iota, then I highly recommend getting a “great” car. Not a reliable one, but one that makes your neck tingle when you drive it. You will enjoy using something very high quality every single day. That is money well spent to me.
So, no one buys a car they actually LIKE? Of course, at heart a car is vehicle that gets you from Point A to Point B. And a house is where you lay your head at night. And food is just to nourish your body. But at what point do you want more than just the basics? I like Burger King sometimes, but Five Guys is much better (and costs more), and there’s a place here in Houston called The Burger Guys that just make some awesome, very unique burgers (and it costs more than Five Guys). It just seems to me if you have a love for cars that you buy something that you care about, within reason. I spend a lot of time in my car, second to my home, so I think it’s important to really like my car. I am going to buy a 60" HDTV soon, but I’m going to shop and use Consumer Reports and get the best deal possible without breaking the bank. I’ll check the local appliance’s scratch and dent center (where I buy all my appliances) before I go anywhere else. I watch tons of TV and DVDs. My ideal car has been (of late) a Lexus IS250, but I would NEVER buy one new. I would scour Cars.com, Yahoo, eBay, CarGurus, AutoTrader, etc. until I found a great used one with less than 30,000 miles on it, but you can be sure it would have all the options I wanted. I’ve already figured my sweet spot is about $23,000 for a 2009 or 2010 with about 20K miles on it. I missed one, but I can wait… Another one will pop up. That’s from a list price of about $38,000-$39,000 for a new one. Again, I don’t get it. It’s a cars forum, yet 95% of the answers relate to questions on a financial forum. And I’m a pretty frugal guy (women might say cheap, but what do they know :), but still, the things I really care about, I try to get something I like at the best possible price. I just have a completely different train of thought.
Obviously not making my point very well. I have ALWAYS bought cars I liked. Scirocco, GTI, Lexus. But I could afford them because I saved, owned them for 10-15 years, and took care of them. That’s the whole, entire, complete point. Trading cars when money is still owed, rolling over negative equity, 60 months loans, all are BAD ideas for keeping ones finances in good shape. One doesn’t have to screw up ones finances to have a GREAT car.
“Most people would drive a $250,000 Lotus if they could afford it.”
Where do you find a Lotus that costs that much?
Like texases, I buy cars I like and drive them for a long time while accruing a ton of miles.
An aged, high mileage car does not mean it falls into the POS category.
As to the financial aspect of this, it’s impossible to separate the finances from the car because cars and money are totally intermingled.
Many of the questions on this forum are posed by people who want to know if a certain repair is worth it, what they should do with a problematic car on which they still owe the farm, whether a certain used cars is worth the asking price, and so on.
“Most people would drive a $250,000 Lotus if they could afford it.”
Reminds me of a VW salesman back in the 70’s. I went in to look at a new car. He ran his mouth and said he had people tell him they had money for a Porsche, but preferred not to spend the money, so got a cheaper car.
He said point blank anyone who had money for a Porsche would buy a Porsche, implying they were lying.
It just so happened that I had money for a Porsche and preferred not to spend the money on a car. I was very offended, and he lost a sale on the spot. I walked. I did not mention that I had money for a Porsche and preferred not to spend it on a car.
Now that I remember, I tried and failed to buy a new car in several places. I liked the small Dodge cars in the 70’s. My mind is gone, and I can’t remember the model name, but they were a good car for the time. The new models were already on the lot. And, the salesman did some razzle dazzle on the older cars, and offered me the generous sum of $100 off window sticker price. I was as offended as I was at the VW dealer.
I went out and bought a used car. A few days later, he called me back and offered another $250 off window sticker price. If he had done that in the first place, I’d have bought the new last year model Dodge.
I didn’t buy a new car until 1988, and a dealer who advertised that one could save a fortune by driving 25 miles to his lot, made a pathetic offer on a new Nova (Toyota knock-off.) Though I had told him he had one chance to sell me a car, no games of calling me days later with a better price.
I went back to town and the dealer there gave me a big discount. A week later, the moron called up with a decent offer. I reminded him I had warned him he got one shot at me.
The next new car I bought was a Sienna, in October 2001. Cars were not selling and I did get a good price at the time, still driving that great car.