give up on 2003 Honda Accord and buy new for grad student?

[Anonymous]

My 24 year old daughter is a graduate student in occupational therapy. So she has no income currently but will (hopefully) be making in the range of $70-80k by summer. She will graduate in May with $41,000 in loans. She currently drives a 2003 Honda Accord with ~143k on it and we were all crossing our fingers the car would get her through grad school until she had an income and get herself a new one. Today she was driving down the interstate when the axle blew and some other stuff. The car is probably worth $4000. We are waiting on a quote to see how much it'll cost. I think the car is in decent condition otherwise? We'll pay for it, but wondering if it's worth it to put the money into it or just buy a new car. Our Hondas have previously lasted more than 200,000, but we've never had one this old. I feel like it's not the miles, but more the fact that it's 18 years old.

[Anonymous]

If you have the cash, it would be a great gift to give her a car that might last a year or two past graduation. Sounds like the Accord might limp to graduation but generate headaches and bills as she starts working. If you go that route, don't fix the Accord and put the money toward the usual older Honda/Toyota options that people like.

Obviously, If you don't have the money, you don't have the money. But, no new cars until those school loans are paid off and maybe not even then.

[Anonymous]

i'd fix it. it will last another 8 months or so.

[Anonymous]

I’d look for something newer and safer. Just wouldn’t want my kid (any kid) driving in an almost 20 year old car, especially with so many bigger, heavier cars around now. And so many really bad drivers these days, or so it seems. Paying for expensive repairs on a car that old just does not seem fiscally wise to me, even though all cars are so expensive right now.

[Anonymous]

A lot depends on your finances, but I’d prefer to have my young driver in a car with ESC and ABS.

[Anonymous]

That car isn't worth 4 grand. 2003 with 143k miles? I'd not give you 500 bucks for it, especially since it needs so much work.

[Anonymous]

I'd probably look into a new used car.

My niece graduated from her grad program in OT in 2020 and has had a terrible time finding a job. She worked in other healthcare related jobs until last month when she finally found an OT job. She's only making $40/hr at this OT position. She hopes that if she stays here for a year, she can start looking for another job and apply with experience this time.

You could fix that car and maybe get another 8 months out of it, but if you buy a new used, she could maybe hang onto it in case she faces similar job issues.

[Anonymous]

Why not purchases something with low payments that she will be able to afford on her future income, and you just make the payments until then?

[Anonymous]

Anonymous wrote:That car isn't worth 4 grand. 2003 with 143k miles? I'd not give you 500 bucks for it, especially since it needs so much work.

I meant that once it's fixed it would be work 4k. It's in line with what we're seeing on Craigslist, FB marketplace, etc. Used cars are really expensive right now.

[Anonymous]

Anonymous wrote:I'd probably look into a new used car.

My niece graduated from her grad program in OT in 2020 and has had a terrible time finding a job. She worked in other healthcare related jobs until last month when she finally found an OT job. She's only making $40/hr at this OT position. She hopes that if she stays here for a year, she can start looking for another job and apply with experience this time.

You could fix that car and maybe get another 8 months out of it, but if you buy a new used, she could maybe hang onto it in case she faces similar job issues.

Interesting, all of the graduates of her program last year (spring 2021) 100% were employed FT within 3 months. Maybe it depends on part of the country and program.