Should I buy a new car every 3 years?

In My Humble Opinion
21

Heck, I have a 1993 Honda Accord EX. It runs just as good as it did when I got it, granted it needs some AC repairs, but that’s to be expected with a ten year old car.

Major repairs to date (bought it in 1996) accumulate to $1500.

I don’t drive a lot but IMHO, a car that you have paid off, buying it used with the now available carfax.com, is going to save you tons more money than buying a new car every three years.

Depreciation is a huge issue. Unless you get a car allowance from an employer or you’re self-employed status (I had a $1500 car allowance when I was in sales) overall, I think a good used car, provided you can understand it’s history and it’s make/model, is going to cost you a lot less over the long term than buying a new car every three years.

Warranties are good but not the only thing to think about. My car was out of warranty when the alternator went out. It was covered under a recall (as was a seatbelt problem.)

I have had to replace tires, oil (of course,) brakes, transmission fluid, etc… alot of it normal stuff.

If you buy a Pontiac or a Ford (car) you will take more of a hit financially than you would with a Honda or a Toyota. They keep their value quite well.

BUT, if you can afford to play with new cars do. But if you really want to have a vehicle that might carry you through hard times, find a car you can afford out-right and maintain that vehicle until times are better.

BTW, I bought my Honda with 46,000 miles. I only have 83,++++ miles on it. I don’t drive that much but my Honda has been (as all my previous Hondas) faithful in it’s use as a used car since 1996. If I had the money to buy a new vehicle I would hang on to my trusty Flintstone Mobile (the Honda) as it’s a practical car with a lot of zest for life.

I would be lost without her, him, whatever. But for the oldest car I have ever owned, I love it. I have never owned a car that was older than ten years and she’s been quite the reliable ride.

22

Not around here. Trucks just don’t depreciate much. When we were looking at getting a truck to replace our wrecked Neon in January 2000, the 3-year-old used F150 extended cabs were going for $18,000+ (45K miles), while brand new models were going for $23,000. That’s only about a 25% depreciation (if I’m doing my math right).

We ended up getting a 2000 model, and because we were willing to put half down (savings + insurance payoff for Neon), we got a 3.9% interest rate, despite not having any credit to speak of (my parents paid for the Neon).

Of course, that was 3 years ago. No clue what depreciation is now on trucks.
[sub]And it was just paid off last week! Whoo hoo![/sub]

23

In my experience, an old car has to be in REALLY bad shape before it becomes more economical to buy a new one. I mean, unless your old car is an absolute wreck that requires serious repairs every month, it’s highly unlikely you’d save money by buying something new.

I mean, I’ve had some ancient cars (my philosophy has usually been to drive my car into the ground), including some that have had a host of problems- but none has ever cost $300 a month to maintain (which is the probably the minimum you’d be paying to replace it).

Now, I’m NOT saying everyone should follow my philosophy! There are loads of good reasons to buy a new car, both practical and psychological (peace of mind is worth something, and I don’t suggest ANYONE keep an old car they’re constantly afraid will stall out on the interstate). But if dollars and cents are the main consideration, it’s almost always cheaper to keep the old car.

24

I don’t get the OP at all. My car has over 200k miles on it. I don’t pay a dime in collision insurance. My ad valorem tax is $7. It cost $7k 15 years ago. Do the math.

I figure I could spend well over $1k/year on repairs and still be way ahead of buying a new car. I mean, I see these ads for $400+ a month car payments and my eyes bug out. $400 a month, for a car? I haven’t spent $400 in repairs on my car for the last 4 years together! (It also passes emission inspections with flying colors.)

25

My personal measure is comparing cost of repair to payments. My Aerostar payments were around $400/month. I paid it off about 2 years ago. Since then, I’ve spent maybe $1000 on non-routine repairs. I do my best to adhere to the manufacturer’s routine maintenance schedule, and I’m a rather gentle driver. I’m hoping for at least 5 more years of service from this vehicle, but if I have several consecutive months of repairs in the $300-400 range, I’ll be shopping for new wheels.

26

I have never owned a new car. I have only had “new to me” cars. I’ve seen all my friends and family complain about the $300-500 a month in payments and have never seen the point. I drive cars that get me where I need to go reliably and I do the maintenance that even new cars still need and have better things to do with the $3600 - 6000 a year. The one (used) car we had payments on the payments were $108/month… Never will I have a $500/month car bill! That’s insane… :slight_smile:

27

I know that Clark Howard on his show often states that to buy a car, buy new only if you plan on driving it at least 7 years. If not, buy used.

28

But remember, some people spend a good chunk of their lives sitting in their cars. We are a car culture, and often derive a chunk of our identity from our vehicles. They can be a significant statement.

To that extent, you cannot fault a decision to spend more than you have to on your car for reasons of personal satisfaction, any more than you can criticise someone for buying the bigger house that is more expensive to own than a cheaper older smaller one.

My main thing is that it’s important for people to have a good understanding of just what this is costing them. The auto industry does an excellent job of masking the true cost of ownership through low monthly payment leases and very long loan amortizations. Many people wind up buying more car than they can afford simply because they don’t realze what they’re losing.

29

From “Car Talk With Click and Clack the Tappet Brothers” by Tom & Ray Magliozzi with Terry Bisson, A Dell Trade Paperback (1991). See chapter 8, “The Click & Clack Comfort/Luxury/Convenience Trade Off Matrix.”, pp 169-189. To be precise,

"There are all kinds of car-buying strategies. They range from buying a new car every year to buying the best ‘heap’ you can find for under five hundred bucks. The latter is always cheaper. Don’t let anyone tell you any different. … So this strategy is always cheaper – in dollars. Of course, if you add in the psychological costs of headaches, worry, the inconvenience of breaking down, the embarrassment of driving a heap, then it’s a different story. The guy with the new car has more comfort, luxury, convenience and reliability than you do.

You have traded thes things for money."

They then go on to recommend that you take the money you’ve saved and spend in on pizzas or trips to Hawaii, whichever makes you happy. Ibid at pp 179-181.

30

Re the OP: dumping a car after three years makes no sense whatsoever. As others have pointed out, that’s a good time to be the buyer.

The Firefly family is a Honda family, and they tend to last forever. Our current Accord is three years old as of this weekend, has 65K miles on it as of this morning, and all it’s needed so far has been routine maintenance. (Including new tires and new front brake pads at 60K miles, but that qualifies as routine.) I expect that will continue to be true for a few years, yet. And even when it does start to require some major repairs in its later years, chances are it will still be reliable for long trips until we’ve had it 10 years or more. Why ditch it now, when we’re two years away from having a reliable car that we won’t be making payments on??

And as others have said, a car has to be falling apart before repairs are more expensive than payments. The payments on a new car typically run $4K/year and up. It takes a couple of major mechanical problems to cost that much.

But at some point the hassle of a sufficiently unreliable car becomes a major cost unto itself - both between the practical cost in time and money of being stranded on the road, the emotional wear and tear of worrying about it while driving the car, and the trips you just plain won’t go on because you aren’t sure the car will make it.

You generally can’t anticipate when unreliability will become a major cost like that; it kinda sneaks up on you, and one day you realize that you’re starting to get a clutchy feeling in the pit of your stomach when you have to drive the old clunker out through the middle of nowhere. But that’s the point where you (or I, anyway) start to think, “How much would it be worth to me to get rid of this damned knot that’s in the pit of my stomach every time I drive?”

31

Buy a good car (1-3 years old) and drive it until it falls down.

I’ve got an old Legend w/ 188k miles - I’ve fed it:

3 minor electrical switches
1 starter
1 power antenna
1 set of brakes (yes, I get 110K to a set of brakes - if you don’t, you need to improve your driving skiils)
2 timing belts
1 door riser re-inforcement plate (defective design)
3-4 batteries
3-4 set of tires
1 set of radiator hoses

The cassette drive is dead, and I’m not going to replace it, it needs about $300 on routine engine work (injectors and gaskets), and the cv’s replaced - otherwise it is a rock.

The most expensive thing here is the timing belt - $600 every 90K miles.

That’s much cheaper than $50K for a new one.

Use to be a Mercedes was good for 30 years - this Acura is going to go for at least 20.

32

And more than a few mufflers, I’ll wager ('92 Integra, here). I think one of my biggest complaints about almost all cars is that the exhaust systems seem to be constructed from pre-rusted metal.

Oh, and PatrickM, my favorite quote from Click and Clack was in response to a caller who was having a problem with the rear window defogger on his Dodge Omni. I believe it was Tom who said, “You know why they put rear window defoggers in those cars? It’s to keep your hands warm when you’re pushing them.”

33

Actually, as it resides in a heated garage in CA, the exhaust system is original - the shop manual is downstairs, so I don’t know, but it may be stainless (all exhaust systems should be stainless - much cheaper in the long run).
Same with platinum plugs.

34

Having just plunked down $450 to replace just about everything between the catalytic converter and the rear bumper, I am green with envy! Your suspicion about stainless steel might be right; even garaged, I’d expect a “regular” muffler to die periodically. Of course, age has more to do with it than mileage; you could probably go 100k in one year on one muffler, but go only 15k in 4 years, and end up with holes in the sucker.

35

Man, this is why I belong to a car co-op. I don’t worry about buying cars, putting gas in, where to park, dealing with insurance, smashed windows, maintenance, and I spent an average of $100 a month over the past year.

And if I want to use a station wagon or a pickup truck instead of a car, I can do that with the same phone call.