12 year old car needs $1500 repair; what to do?

[Anonymous]

OP look at this and see if you're developing any of these issues. Once a car gets as old as yours, everything starts to break.

https://repairpal.com/volvo-s60-2006/problems

I wouldn't bother fixing it then selling it, just sell it as is. You can get at least $1,000 for it.

[Anonymous]

It's hard to answer your basic question. It could go either way.

However, since this is the M&F forum, I should point out, as others have alluded to, that there's a serious mismatch here between your investment net worth at the age of 40, and the sort of premium/luxury European car makes with historically poor reliability of which you think your family is deserving.

Only in the hope that I might shock some sense into you, I'll note that we're a couple years younger than you, have eight times your net worth, and wouldn't dream of buying something fancier than an ultra-reliable Honda/Toyota. Volvos are horrible cars. If your DH's business takes off, and after you set aside your first $2M, then you can think about getting a Lexus. Make this Volvo your last.

[Anonymous]

Value of your car as-is + repair cost = X

Sell this car and buy a reliable used car worth X.

Sell *that* car in a year or two with the money from the car your sold + you saved not paying for more repairs on your 12 year old Volvo.

So on.

This is the smart way to do cars when you got other crap going on in your life. Do NOT pick up a "300" car payment on a new car.

[Anonymous]

Anonymous wrote:It's hard to answer your basic question. It could go either way.

However, since this is the M&F forum, I should point out, as others have alluded to, that there's a serious mismatch here between your investment net worth at the age of 40, and the sort of premium/luxury European car makes with historically poor reliability of which you think your family is deserving.

Only in the hope that I might shock some sense into you, I'll note that we're a couple years younger than you, have eight times your net worth, and wouldn't dream of buying something fancier than an ultra-reliable Honda/Toyota. Volvos are horrible cars. If your DH's business takes off, and after you set aside your first $2M, then you can think about getting a Lexus. Make this Volvo your last.

Aren’t you practical? I don’t see anything wrong with someone in OP’s situation having an European car and driving it for 12 years. The fact that you’d never do this is irrelevant.

[Anonymous]

Anonymous wrote:I don't think there is a way to know for certain what the best course here is.

We've sunk a lot of money into our 12 year old car over the last 3 years - way more than the car is worth but it has come one $1500 charge at a time. If we had known three years ago we were going to spend this amount of money we never would have but now we are in for a dime, in for a dollar.

But our car only had 95,000 miles on it when the repairs started and today only has 115,000 so if we get to 200,000 miles (which is not unrealistic for this model and brand) it will likely still have been money well spent.

I'd look up the Consumer Reports info on this particular model and year to get a sense of what you might expect but if these are the first repairs on the car I think it is reasonable to expect that there will be more to come and for similar or greater amounts.

Having said that based on your situation it is nuts to think of getting a new car but a similar used car will still cost more than your current repair bill so I'd roll the dice and make the repairs.

My dad told me a long time ago that once you start having to put money into a car past just maintenance, let it go. It has turned out to be good advice.

For the OP, I'd risk it and do the repair. You'll get at least 3 more months out of it, which means you'd "break even" on a new car. But if it needs another major repair within a year, don't do the 2nd repair and just get a new car at that point.

[Anonymous]

Since you like it I’d do the repair. FWIW I’d also stop the Roth savings in favor of maxing out your 401k(s). Might save a few bucks there.

[Anonymous]

Anonymous wrote:It's hard to answer your basic question. It could go either way.

However, since this is the M&F forum, I should point out, as others have alluded to, that there's a serious mismatch here between your investment net worth at the age of 40, and the sort of premium/luxury European car makes with historically poor reliability of which you think your family is deserving.

Only in the hope that I might shock some sense into you, I'll note that we're a couple years younger than you, have eight times your net worth, and wouldn't dream of buying something fancier than an ultra-reliable Honda/Toyota. Volvos are horrible cars. If your DH's business takes off, and after you set aside your first $2M, then you can think about getting a Lexus. Make this Volvo your last.

you're a real peach

[Anonymous]

I sympathize. We have a 2006 Ford Escape Hybrid with almost 151K miles and the power steering went out. The dealer told me that the power steering is an electronic component tied into the car computer and that it will cost $3300 to replace. The cars only worth about $3800 (had it recently valued since it was in an accident caused by another driver and the insurance did not total the car, but told me the value). But, we're about to purchase a second home this year (already in negotiations with the seller) and so don't want to put the money in. So, I'm just dealing with lack of power steering for a few months until we can get a good deal on a replacement vehicle.

But this is the first time I've kept a car to 150K and 12 years (usually replace around 100-120K and 9-10 years). So worth it. Just hate the timing since we were planning on a new car next year. If I were in your shoes, I would do the repairs and try to hold on another year and replace it next year with a CPO car with under 25K on it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't think there is a way to know for certain what the best course here is.

We've sunk a lot of money into our 12 year old car over the last 3 years - way more than the car is worth but it has come one $1500 charge at a time. If we had known three years ago we were going to spend this amount of money we never would have but now we are in for a dime, in for a dollar.

But our car only had 95,000 miles on it when the repairs started and today only has 115,000 so if we get to 200,000 miles (which is not unrealistic for this model and brand) it will likely still have been money well spent.

I'd look up the Consumer Reports info on this particular model and year to get a sense of what you might expect but if these are the first repairs on the car I think it is reasonable to expect that there will be more to come and for similar or greater amounts.

Having said that based on your situation it is nuts to think of getting a new car but a similar used car will still cost more than your current repair bill so I'd roll the dice and make the repairs.

My dad told me a long time ago that once you start having to put money into a car past just maintenance, let it go. It has turned out to be good advice.

For the OP, I'd risk it and do the repair. You'll get at least 3 more months out of it, which means you'd "break even" on a new car. But if it needs another major repair within a year, don't do the 2nd repair and just get a new car at that point.

Your dad wasn't handy, was he? I would agree with you if you are paying a dealership $250 to replace a $20 sensors that takes 5 min.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's hard to answer your basic question. It could go either way.

However, since this is the M&F forum, I should point out, as others have alluded to, that there's a serious mismatch here between your investment net worth at the age of 40, and the sort of premium/luxury European car makes with historically poor reliability of which you think your family is deserving.

Only in the hope that I might shock some sense into you, I'll note that we're a couple years younger than you, have eight times your net worth, and wouldn't dream of buying something fancier than an ultra-reliable Honda/Toyota. Volvos are horrible cars. If your DH's business takes off, and after you set aside your first $2M, then you can think about getting a Lexus. Make this Volvo your last.

NP but I totally agree with you!!

[Anonymous]

This is going to be an unpopular opinion, but I highly recommend the Avis used car program. Everyone on DCUM freaks out and says "Don't buy a rental! But I did a lot of research and I was fine with it - rental car companies perform regular maintenance, sometimes better than a private owner would.

All of their cars are late model, and the mileage is high for the year (example, the car I bought had 25k miles and is a late model). But the prices capture the depreciation, and this is not the case at Carmax.

Here is what I liked:
--They let you test drive the car for 3 days, so you can take it to a mechanic.
--It is absolutely no pressure sales. ID the car you want, make an appointment to pick it up and drive it.
--Dealer fees are in excess of 1k. Avis is more like $300 or less
--The actual pricing of the car is 2-3k lower than any dealer. And then add the saving in dealer fees and you are looking at 4k lower. I took a picture of a TINY ding and sent it to them, and they took another $250 off the price, and they also gave me a military discount of $750. I was very very pleased to save 5k on my car purchase.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's hard to answer your basic question. It could go either way.

However, since this is the M&F forum, I should point out, as others have alluded to, that there's a serious mismatch here between your investment net worth at the age of 40, and the sort of premium/luxury European car makes with historically poor reliability of which you think your family is deserving.

Only in the hope that I might shock some sense into you, I'll note that we're a couple years younger than you, have eight times your net worth, and wouldn't dream of buying something fancier than an ultra-reliable Honda/Toyota. Volvos are horrible cars. If your DH's business takes off, and after you set aside your first $2M, then you can think about getting a Lexus. Make this Volvo your last.

NP but I totally agree with you!!

Could you be more arrogant? There's nothing attractive about a women bragging about how much money her husband makes.

[Anonymous]

Huh? You sound crazy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's hard to answer your basic question. It could go either way.

However, since this is the M&F forum, I should point out, as others have alluded to, that there's a serious mismatch here between your investment net worth at the age of 40, and the sort of premium/luxury European car makes with historically poor reliability of which you think your family is deserving.

Only in the hope that I might shock some sense into you, I'll note that we're a couple years younger than you, have eight times your net worth, and wouldn't dream of buying something fancier than an ultra-reliable Honda/Toyota. Volvos are horrible cars. If your DH's business takes off, and after you set aside your first $2M, then you can think about getting a Lexus. Make this Volvo your last.

NP but I totally agree with you!!

Could you be more arrogant? There's nothing attractive about a women bragging about how much money her husband makes.

DP. I didn't get an arrogant vibe. I'm not nearly as rich as the PP but I also don't have a chip on my shoulder about money. It just so happens that she is also right about income/savings level and new Volvos.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's hard to answer your basic question. It could go either way.

However, since this is the M&F forum, I should point out, as others have alluded to, that there's a serious mismatch here between your investment net worth at the age of 40, and the sort of premium/luxury European car makes with historically poor reliability of which you think your family is deserving.

Only in the hope that I might shock some sense into you, I'll note that we're a couple years younger than you, have eight times your net worth, and wouldn't dream of buying something fancier than an ultra-reliable Honda/Toyota. Volvos are horrible cars. If your DH's business takes off, and after you set aside your first $2M, then you can think about getting a Lexus. Make this Volvo your last.

NP but I totally agree with you!!

Could you be more arrogant? There's nothing attractive about a women bragging about how much money her husband makes.

I'm not arrogant. I acknowledge that we've been very lucky. But we also have much more of a wealth building mindset, and, since this is finances forum, and OP is very plainly stating that money is a little tight right now, it seemed absurd that she's driving a luxury SUV in the first place.

Also, I am the husband, and I make the majority of the money.