Have you ever traded in your car because it needed major repairs? Did you regret it later? Is there a rule of thumb on trading in when a car’s needed repairs exceed a certain amount?
I ask because I’m thinking of trading in my 2006 Ford sedan. I’ve owned it for 4 years, and there’s 1 year left to pay on the loan. It essentially needs a brand new suspension (damned bumpy commute, and it’s a heavy car). Also 4 new tires, because of the suspension. The total repairs would be in the $1500-$2k range, which I absolutely *cannot *scrape up at the moment. And I’ve got a 700-mile trip coming up. I surmise that my car would probably make the trip ok. But, it might not. It could blow a tire or 2 (or 4) on the way instead, stranding me in the middle of nowhere without enough cash to fix the problem. Plus, there’s no guarantee that something else won’t go wrong next month, anyway… /rageface!
Having done the research, I’m confident that my car’s value, even minus anticipated repairs, will exceed my loan payoff amount. So I was thinking, maybe now’s the time to trade in for something more reliable. Yes, it will extend the amount of time I spend making a car payment. Yes, it will cost me more money in the end than just repairing it. But I live paycheck to paycheck, and can’t afford to get the repairs done. Whereas I *can *afford to extend my car payment a few more years. Overall, it seems like the peace of mind would be worth it.
Have you ever made a similar decision? Did you regret it, or did you feel relieved afterward?
In my case, it was when the cost of repairs for a 20 year old car was going to be more than anything I’d get for it ($2k or more). We bought a replacement two days later.
Don’t trade in your car, sell it on craigslist. That is, if the Blue Book value minus the repair costs are worth it. Dealers have to put money into reselling used cars and also want to make a profit, so they’ll pay you far less than an individual. Heck, you might even float a craigslist ad pre-repair, in case someone wants to do the work themselves.
As for when to cut one’s losses with a car that has started having problems, that’s a hard question to answer. You always end up contemplating the question when it needs something done, but you have to do the work to sell it anyway and then you wonder if maybe that’s all it’s going to need for a while so why not just keep it and then you’re at the mechanic again wondering why you didn’t sell the damn thing six months ago.
To sell it privately, I’d have to pony up the cost for repairs upfront. That’s not going to happen in the timeframe I have to work with. Also, because the vehicle is currently financed, my lienholder has possession of the title. I wouldn’t think a private buyer would be willing to write me a check, wait around for the title to clear, and THEN get the car.
There’s also a convenience/safety factor involved. I bought the car used from carmax, and that’s who I’d be selling it back to.
If a dealer will give you more than the remainder on the loan, and you can get another car without increasing your monthly payment it sounds like a no-brainer to me. That’s because you’re about to move, you have to make the long trip, and you don’t want to spend your time looking for mechanics and car dealers in a new location, and have an unknown cost looming ahead of you.
Do tires really count as a “repair”? Maybe you drive a lot less than I do, but for me, new tires are a regular maintenance purchase; I get a new set of snows every 3-4 years, and a new set of summer tires every 3-4 years, on a staggered schedule.
That said, I drive a 1999 Corolla with a little over 200k miles. I’ve had to put 3-600 of repair into it each year for the past two years. The thing is, as long as it starts up reliably and gets me where I want to go, even spending 1k a year in repairs would still be dramatically cheaper than car payments for a year.
So, as long as I’m willing to drive an old car, and as long as it passes inspection without too much fuss, it’s a better financial choice to keep it.
I used to take it on road trips to Chicago; I don’t think I’d do that any more, but for local driving and trips to visit family and friends around New England, it works great!
Every month I can drive it is another month without a car payment. That’s worth a lot.
It’s a 2006, so it’s not like it’s falling apart. What exactly is wrong with it? Blown shocks? Which shocks are blown? One? All four? Have you gotten a second opinion, or did some shady mechanic tell you some horribly vague gibberish like “Your whole suspension is basically shot, gonna need a new set of johnson rods in there.” Didn’t we do this thread a few months ago?
Buy some used tires and either find a cheap mechanic who is willing to do the bare minimum to get you back on the road, or take out a loan for the 2k to have it fixed. Pay it off, then start sacking your monthly payment away in savings. Use that money to fix it next time it breaks.
Buying a newer car at this point seems like it will save you money, but you’re just financing future depreciation. If you truly can’t afford to keep a 2006 running, sell it and buy an older car. No car is going to be maintenance free, so the faster you stop having a car payment and saving the money instead, the better off you’ll be.
At what point should you trade a car in rather than repair it? At the point when the lack of reliability is a bigger headache than the cost of buying a better car. Financially it’s always cheaper to repair the car you already own than to buy a new one - but finances aren’t the only consideration for most people.
I recently gave my 13 year old car to my son. A few months later he managed to blow the motor.
To get a replacement motor put in properly was $1800.
The car was worth, once repaired, max $2000. Sold for parts with a blown motor maybe $300.
So the choice was to repair or buy another one and the main decision factor was what we/he was likely to get for $2000.
We decided that by repairing the car we’d end up with a more reliable vehicle than what we were likely to get for buying another for the same money, so went down the repair route.
Look at the Consumer Reports for the reliability of your particular car. A great car can last a million miles on affordable repairs. Take care of your ride and it will take care of your needs.
I was told that all four of my tire’s steel belts were broken when I tried to get a rotation done during my oil change last weekend. At another mechanic. I get the impression that they’re ticking time bombs. The car could make it another couple thousand miles, or they could all blow at the same time tomorrow. I appreciate the suggestion of used tires, although I don’t know where to find good ones or how to tell a poor used tire from a good one. Would the same issues not just crop up again shortly after putting old tires beneath a poor suspension?
I realize there’s no such thing as a maintenance-free car. But my financial situation is going to improve immensely after I move, because I’m going from a single lifestyle to a 2-income household. We’ll be able to save every month, instead of living paycheck to paycheck as I currently am.
Used tires can be purchased at tire shops, wrecking yards, craig’s list auto parts, and your local paper’s auto parts ads. Tire shops often sell take offs from another customer’s car. The selection is limited, but you can be assured that they will not sell you a known bad tire. Ask around. You will have to pay for mounting and balancing.
Wrecking yards may even have your sized tires already mounted on rims/wheels that will fit your car. Same with craig’s list. Craig’s list is the least reliable source for quality used tires. I have bought many good used tires off of Craig’s list though.
Another option is tire shops that specialize in used tires. Most citys have at least one such shop. These shops live on their reputation, thus they are more likely to sell you quality used tires then most folks would think. If they sell junk word gets around and then they are out of business.
If you can get to your new town with this car, and then get it to last a while until you can build up funds to repair/replace the defective suspension parts, then this is what I would do. You can be free of a car payment in almost no time. Even if you end up buying two sets of used tires because of the faulty suspension, you will save alot of money over buying a new-to-you used car. You will save a ton of cash over buying a new car.
I concur. Proper maintenance is essentially always less costly - and safer - in the long run.
Allowing tires to get into a bad state without having funds available for their replacement is a really questionable idea. Tire condition has tighter correlation with vehicle safety than just about any other piece of equipment. And they are a regular wear item (though good ones wear slowly) - being unable to afford replacements when they are needed is about like being unable to fill an empty gas tank.
Meh, not everyone can be a mechanic. I never heard of a steel belt before he mentioned it to me. And the tires look fine at a casual glance, which is all I know how to give a car.
Thanks for the advice, a neutral third-party perspective is greatly appreciated
So after sleeping on it, I think I’m going to call my lienholder and ask them if I can defer my May car payment and add it to the end of my contract. I’ve never had a single late payment in 4 years, so hopefully they will work with me. Then I’ll be able to afford new tires, and crisis averted. I found some for $75 each (new) on Discount Tire’s website.
If belt(s) are broken you should be able to see a bulge in the tread on the tire - like an aneurysm in a vein - caused by internal air pressure. I don’t know of any other way to offer that as a diagnosis. If there is one or more bulges in the tire, whether in the tread or on the sidewall, then you should have it replaced immediately. Broken belts in tires are generally caused by impact (hitting a curb hard) or manufacturing defect, not suspension problems.
If the tires are worn excessively, the steel belt will show eventually through the rubber. This is diffferent than a broken belt, but the tire(s) should be replaced immediately. Exposed belts due to uneven wear do indicate a suspension issue. That could range from a relatively minor wheel alignment up to the $2000 job you indicated. That level of suspension repair is more common in a much older or wrecked vehicle, though.
Since the front and rear suspension are completely separate, all 4 tires being affected would be a rare coincidence. I would love to see an itemized estimate from the shop to get an idea of what they are saying is wrong. What you have posted above - 4 tires with broken belts = need “brand new suspension” - really doesn’t make sense to me.
I posted all this to say that the first step is to determine if the car really does need major repair.
