Should I put more miles on my new or old car?

In My Humble Opinion
1

We recenlty bought a new vehicle, and traded in another vehicle because it had decent trade in value. Now, we have two cars at our disposal:

  1. 2005 Chevy Malibu Maxx–22-30 M.P.G.
  2. 1989 Chevy Celebrity–about 20 and 25 M.P.G.

I see value in keeping the Celebrity running as long as possible, even though it is 16 years old, it has only 80,000 miles on it. It runs just fine. Since it is paid off, I would love to keep it going to save as much money as possible. Therefore, it makes sense to put fewer miles on the Celebrity.

However, this obviously puts more miles on the newer car. Doing so more severely limits its potential trade in value. We would like to see this car last a long time, and this is more easily accomplished with fewer miles.

The gas mileage difference is not a huge consideration since they are fairly close.

Which makes more sense, trying to save the old dinosaur–or keeping the puppy running for a long time?

2

Drive the Celebrity.

Mileage kills the value of a newer car much faster than it will the older one. NADA adds all of $288 to the average retal value of your car for having only 80k as opposed to the expected 130k. On an '89, NADA doesn’t distinguish between 130k or 430k miles as far as the suggested values. The implication being, “Feh, it’s an '89 Celebrity, nothing else matters much.”

Keep your Celebrity in good running order, spend the money on some good tune ups & timing belt/chain. Run it till it dies.

The value on the Malibu is going to get hammered for the next few years anyway just because it’s a 2005. On a car under about 7 years old, however, mileage plays a pretty huge role in the value. Park the Malibu.

3

First, to answer your question, I would drive the newer car. I mean, why did you buy a new car anyway, if not to drive it. If it was just going to be parked, it’s much cheaper to let the dealer keep it on their lot until your current ride dies.

Anyway, most of the new car depreciation came at purchase; the marginal depreciation from excessive mileage is much smaller than the year-to-year loss you’ll see. IMHO, with the mpg about the same, the incremental cost/mile is probably better for a newer vehicle that’s under warranty. Also, you’ll have better passive safety (2nd-gen airbags, ABS) and new-car amenities (the Maxx should be a nicer ride).

But, if you have 2 cars, and will always leave at least one at home, my thought is to actually sell the older car. That way the insurance, parking costs (if there are any), and time-dependent maintenance (seals, paint, tires, etc. as opposed to mileage-dependent things like oil changes, transmissions, etc.) go away. This answer isn’t right for everybody, because it does eliminate the back-up vehicle if one is in the shop, but the cost to keep running a 16 year old car that is only driven occasionally can add up, too.

This is what I did for my folks recently - for 2 drivers they had 5 cars, the oldest 2 being 80’s Toyotas. They didn’t drive them much, so the cars just sat in the street getting older (there’s really not much depreciation left in them at that point). They were sold through AutoTrader - now my folks are happier, and someone gets to drive those cars instead of that iron just going to rust. My wife and I are down to 1 car now, and it doesn’t make sense for us to pay parking and insurance on another vehicle that would be driven so rarely.

On preview, I see IM’s comment. For absolute economy, rewind time and don’t buy a new car. :slight_smile:

Hope this helps.

4

Thanks for the comments guys.

Let me clarify the situation slightly. Both cars will be driven almost daily, but one will be driven about 4 times as far each day. We have to have two cars–one for me and one for the Mrs. So it is not a matter of one or the other exclusively, but which one should get piled on faster.

Thanks.

5

I agree with Schuyler, why did you buy a new car if you don’t intend to actually drive it a lot? Take the new car on long trips.

6

I would use the newer car for the longer trips. Older cars, no matter how well kept up, tend to have odd mechanical things go wrong occasionally. (I speak with experience as I’m eking out every last mile from my 88 Cherokee) I think the person with the longer commute should have the more reliable car. And if you’re planning to keep the new car for a long time, I don’t think you need to wory about trade-in value much as it levels out after a while anyway.

Although, if that leaves the missus in the older car and you know she’s driving through iffy areas, you might want to consider putting her in the more reliable car. (yeah, it’s kinda sexist but it’s a lot scarier being a lone woman broken down on the side of the road in a dicey neighborhood than it probably would be for guys)

7

We bought the new car so we would have one very reliable car that we knew would last awhile. The Celebrity has been a great car, but I wouldn’t be confident taking it on our yearly trip to Alabama, which covers about 700 miles one way.

8

If you don’t mind, I’ll chime in again. I would second Tremorviolet and let your wife drive the newer car, since it’s probably more reliable (as you’ve stated) and safer - the reason for that last point is not just self-sacrifice although chivalry is part of it, but a guy will probably come through an accident better, all else being equal; (likely) you’re farther from the airbag, you have more mass and muscle mass.

If the new car has the shorter commute, then you’ll use up the old car, save miles on the new car, and eventually replace the soon-to-be-worn-out clunker. If the new car has the longer commute, then you’ll save wear-and-tear on the less reliable car (keeping it out of the shop) and pile up miles on the new car, which is OK since it should stand up to this well, being newer.

Hope this helps.

9

I don’t think it’s so cut and dried as that. If Schuyler has a spouse and possibly a family, both cars probably need to be used, which explains why a new car was needed in the first place. The question is how to allocate the use of both cars to result in the best trade in value down the line. If Schuyler and spouse both work outside the home and can’t carpool, then whoever has the shortest distance should drive the new car during the first year or two.