Anonymous wrote:I drive the wheels off my cars. I'm currently driving a 1998 CRV that I plan to keep for 2-3 more years. I get a new car when the cost of a repair job is more than 1 year of car payments. I consider it if the repairs are worth more than the vehicle and I can't be sure that I will get at least 1 year out of the car after it is repaired.


$3500 would be past that tipping point.

This is a good rule of thumb. I drive my cars until I feel they're unsafe/unreliable or until the repair costs get too high compared to the value of the car. I just got rid of my 1998 Honda CRV because the ABS crapped out. Too much $ to fix, too unsafe without it.

In our experience, the sweet spot is at about 7 or 8 years. That is because the repairs haven't started yet and the price you can get for the car favorably reflects that. Once you get to 9 or 10 years, no one who needs a reliable car will touch it. Even if low miles, all the hoses and seals in the car are at risk just from age.

I could've written your post OP. I spent 2 years prolonging the inevitable. I spent about 2-3K per year the last two years I owned my prior car (a 2002 model).

When I was hit with another $500 fix 3 months after just paying for another one, I got tired of it... the inconvience of having my car in the shop, the worry each time I drove the car that something bad might happen (esp with DC along with me). I finally bit the bullet, researched some cars, did some test drives, and bought a gently used, well-kept car that had only 1 prior owner and all service records. The $360 monthly payment is worth it- for the peace of mind, and the convienence. I plan to drive it as long as it holds up and I'm not spending more than 2-3K in repairs per year.

Also- if you have good credit, car loans are incredible low right now. I went in with an pre-approved loan from my bank, and the dealer was able to negotiate and even lower rate since my bank was already one of their preferred lenders. I'm paying like 1.9% on my loan.

Just do it. I honestly wish now I hadn't waited so long and was so stubborn about it. And I love my "new" car.

For us, it was when we knew the next repair was going to be $5,000. We'd only had the car 2 years, we bought it used with 20,000 miles and expected to drive it till the wheels fell off. But, we were at 52,000 miles and it was needing lots of repairs when it shouldn't have. Things were just not 'right' and I was fearful to take the car on long distance trips. We sold it before we were faced with a huge decision and have no regrets.

I now sleep better at night knowing that my family is safer in the newer car. We had to give up several options that I loved but in order to stay within the budget we had, we could only buy a car for X dollars, regardless of what the salesman tried to sell me on.

I suggest buying a used car that is 1-2 years old with low mileage. Pentagon Federal Credit Union has car loan rates around 1 percent so the interest is very small. You can get a very nice sedan for around $15,000 and a minivan around $20,000 that are low mileage, 1-2 years old so your payment will not be that high.
Your car is 12 years old,

For me, I said goodbye to the 10+ year old car when it went from NEVER breaking down, not once, to 3 break-downs in one month and a repair bill of $3k. I sold it for $4k, bought a brand new Jetta and never looked back. Those VW dealers are really tempting with the amazing maintenance and extended warranty/full manufacturer insurance plans. I got a base model with an extended warranty and I have MAJOR peace of mind now.

what I did (before daycare costs) is continue making the car payment into a dedicated savings account. I used that account to pay for all car repairs. Then, when the repairs got too high, I had cash already for the new car. Then, daycare etc. interrupted this approach.

I have 102k miles on my '04 Honda Civic hybrid.

The dealer had me cough up about $600 the last time I was there (December) and warned me about "other stuff that'll need to be replaced" to the tune of about $1500, plus the battery replacement of $1500-2000.

It's failed me once and that was due to the dealer screwing up twice. (Then a mechanic in Boonsboro MD screwed up.) The dealer was nice enough to get me a rental car free of charge.

OTOH, I'll be taking the car to another mechanic, closer to home, to see if those $1500 of repairs are a figment of the dealer's imagination or are really needed. I've gotten some "it's time to trade in your vehicle" letters from the dealer, who has relocated to about 30 minutes from me during rush hour.

OP, if it's $500-$1000 of repairs each year, and you're good to go for another year, that's less than a new car payment. My tipping point is if the repairs cost more than a new car would cost.

Anonymous wrote:OP Here:

We usually get a new car when we start having body integrity problems or one repair after another. Sold the minivan when a door wouldn't shut and we had to hold it closed all the way going down a mountain. Sold a sedan after replacing seat belts three times, air whistling through a closed door after repainting a car door and taking it in twice to no avail, A/C going down repeatedly, etc. When we are taking a car in multiple times a month, it's time for a new one!

Hmm. See, that's the thing with my car...it has never left me stranded and it's not like I have problems month after month after month. It's just a big repair bill once a year. I pay it, I put it out of my mind, a year later there's another big repair. And it's always something different! One time the transmission, other time the suspension, etc. And then once I pay, I think, well, I HAVE to keep it now...

Anyway, I do take the point of an earlier poster who said it's not really a science. I basically like my car and that's probably why I haven't reached that tipping point as soon as others might have. Even though I should be there.

Sounds like you just about replaced everything. So, the car should give you a few more years.

I wish I would of repaired my old car instead of getting a carnote.

All right, you've convinced me! I'm off to the Mercedes dealership.

For me the tipping point would be about where you are now. The car is over 10 years old. There have been many the improvements in cars in the past 10 years. Interest rates are low. You can still probably sell your care for some cash, or trade it. Those unexpected repeat repairs will just keep getting bigger and bigger, while your balance on a new car will be getting smaller. It is always a pain to buy a new car --but they last a long time.

OP Here:

We usually get a new car when we start having body integrity problems or one repair after another. Sold the minivan when a door wouldn't shut and we had to hold it closed all the way going down a mountain. Sold a sedan after replacing seat belts three times, air whistling through a closed door after repainting a car door and taking it in twice to no avail, A/C going down repeatedly, etc. When we are taking a car in multiple times a month, it's time for a new one!

Hmm. See, that's the thing with my car...it has never left me stranded and it's not like I have problems month after month after month. It's just a big repair bill once a year. I pay it, I put it out of my mind, a year later there's another big repair. And it's always something different! One time the transmission, other time the suspension, etc. And then once I pay, I think, well, I HAVE to keep it now...

Anyway, I do take the point of an earlier poster who said it's not really a science. I basically like my car and that's probably why I haven't reached that tipping point as soon as others might have. Even though I should be there.

Anonymous wrote:

Anonymous wrote:I think the part you're missing is that when you are making car payments, you are investing in something that (hopefully) will last for years. When you invest in car repairs (as you have seen) you are paying for one or two years at best. The tipping point is when you would have purchased a lot more time without worrying for the same price.

This doesn't make sense. A car is not an investment. Say you have the choice between a $1200 repair and getting a new $20,000 car for $400 a month. Say the repair gets you a year and then you buy a new car. The comparison of where you are after 3 years is:

(if you did the $1200 repair) -- You've spent $10,800 over three years and now have a 2-year-old car.
(if you didn't do the repair and got a new car instead) -- You've spent $14,400 over three years and have a 3-year-old car.

If repairs can get you one more years, it should be worth it to you if the repairs are less than a year of car payments, discounted by how much you hate your car and want a new car. It isn't really a science.

But every dollar you put into an old car is just prolonging the inevitable, but money spent on a new car is spent getting you to the sweet spot: a car you own outright that isn't in need of major repairs yet. So if you fix the car for any amount, you will still have to pay a certain amount on a new car at some point, and if you are clos to the life-span of your car, you may be paying twice as much: the equivalent of a down payment one year on repairs and an actual down payment the next year on a new car.

For me, the tipping point is when the average monthly cost of car repairs exceeds the cost of car payments, and I'm expecting it to stay that way. Or, for our primary car, when we start to have more and more repairs for safety-related issues.

We usually get a new car when we start having body integrity problems or one repair after another. Sold the minivan when a door wouldn't shut and we had to hold it closed all the way going down a mountain. Sold a sedan after replacing seat belts three times, air whistling through a closed door after repainting a car door and taking it in twice to no avail, A/C going down repeatedly, etc. When we are taking a car in multiple times a month, it's time for a new one!

OP: I have a 16 yr old volvo that did not require any repairs other than the usual maintenance. We purchased a second car b/c I don't trust it and the AC doesn't work when it's over 90 outside.

If it had cost me what you are investing in yours, the decision to replace it would have been much easier...we still have it BTW...but now have something shiny, new, and ACed