Does it pay to keep older cars?

[Alfred_B]

Originally Posted By: Vikas
I will eat my shoe if that Audi would have no other "capital" cost (as you define it; aka essential for the car to function) in 200K miles


What kind of shoe do you have in mind? I would recommend something with leather soles -- it will be easier to digest.

 

[jeepman3071]

It really depends on the owner's situation, and what kind of car it is.

An older luxury car or car with a lot of electronics will be more expensive to maintain. My friend just sold her older Audi A4 and bought a newer Civic. She loved the Audi, but it needed frequent little maintenance items since it had 170k. Easy enough when she commuted a few miles away from home, and had driveway space to work on it. Now she drives an hour to work, and lives in an apartment complex. This makes frequent car maintenance difficult and more expensive, since repairs would now need to be done at a shop.

 

[Hollow]

Really depends on the car/situation.

We got a "free" 1992 Olds 88 2 years ago. Had been minor wrecked a few times and had a total loss title. Missing front bumper, AC dead, suspension shot and so forth.

I put on 4 new tires ($300)
New radiator and hoses ($150)
Valve cover gaskets ($20)
Tune up ($100ish)
Rear drums, wheel cylinders, etc ($200)
Coolant bypass hose ($75)

When the starter and alternator went out from not liking to coolant bath from the bypass hose going, and the ABS shorted out, and the camshaft sensor went out, and a passenger front caliper started to seize...I had a $500 car that I'd already put almost $1000 in and needed far more than it was worth by any metric to be half way road worthy and reliable.

Extreme example though.

Currently have a 2003 Subaru with 162K that's paid off but needs some pricey repairs (new exhaust system due to rust, new back hatch due to rust, leaking head gaskets) pending. Still road worthy but requires a repair budget until the rust moves to frame, and then she's done.

Have a 2002 Subaru with 111K on it that was beat on pretty hard by the previous owner...lots of fixing up to do and a bit more of a cost than I was expecting out of it initially.

That said, $1000-$3000 in repairs (even yearly) is a lot cheaper than a new car on something mechanically sound.

 

[BrianF]

I think it pays for a certain extent. My Tb is 11 years old, 204xxxkm. So not overly high mileage. It runs great for the mst part but around the 160 mark the parts were starting to wear out, bearings, pulleys, interior trim. I have sunk a few grand into it but the engine and drivetrain are going decently stong. I am under no illusion it drives like a new car but it still goes and it is relativity easy to fix. This upcoming year it will be needing its 3rd set of tires, front brakes, power steering line and rear axle seals. Sure that will be a couple grand to deal with but its been paid for since 2010 so really its a lot less than a new payment.

If this thing was higher mileage and the engine/drivetrain were worn out I think the cost/benefit would have teetered in the wrong direction.

 

[kschachn]

Originally Posted By: cjcride
Yes it pays to keep the car if you are mechanically inclined.


I think that is pretty key. I'd never have kept my BMW had I not personally done the huge amount of work on it that I've done. If I had to pay someone to do that it would have been a ridiculous amount of money. My Asian cars don't have two water pumps, 13 water hoses and 11 ball joints all of which wear out on a regular schedule.

I'm not complaining though, out of the four cars I have there's not one that I'd rather drive.

 

[oilpsi2high]

It all comes down to the hassle factor for most people, and most people are either not mechanically inclined or cannot take the time off from work to bring their car to the shop for repairs. So instead of keeping calm and renting a car for a day, or learning how to turn a wrench, they go out an finance a $ 32,000 crossover for 6 years at 9% interest and then do the same thing over again when the payments are up. I almost feel bad for them.

 

[artbuc]

Originally Posted By: oilpsi2high
It all comes down to the hassle factor for most people, and most people are either not mechanically inclined or cannot take the time off from work to bring their car to the shop for repairs. So instead of keeping calm and renting a car for a day, or learning how to turn a wrench, they go out an finance a $ 32,000 crossover for 6 years at 9% interest and then do the same thing over again when the payments are up. I almost feel bad for them.


I agree completely but some people have plenty of dough and simply like to drive a new car.

 

[cjcride]

Originally Posted By: oilpsi2high
It all comes down to the hassle factor for most people, and most people are either not mechanically inclined or cannot take the time off from work to bring their car to the shop for repairs. So instead of keeping calm and renting a car for a day, or learning how to turn a wrench, they go out an finance a $ 32,000 crossover for 6 years at 9% interest and then do the same thing over again when the payments are up. I almost feel bad for them.
This is one of the reasons that Bank Stocks will do you proud.

 

[Andrew1972]

If you have a good inexpensive mechanic (yourself or paid) and an extra vehicle or flexibility you can save a ton of money. I live against an affluent neighborhood where Suburban is popular. They all hold onto them with high mileage as cost of new acquisition starts at $60k and repairs are significantly less. Same is true of Honda Pilots first generation.

People who are smart with money hang onto vehicles longer IMHO.

 

[dwcopple]

Originally Posted By: Hollow


Currently have a 2003 Subaru with 162K that's paid off but needs some pricey repairs (new exhaust system due to rust, new back hatch due to rust, leaking head gaskets) pending.

How is that possible? Do you not wash it? How much snow do you get in the south? Do they salt the roads?

 

[jeepman3071]

Originally Posted By: madRiver

People who are smart with money hang onto vehicles longer IMHO.


I find this to be true as well. All of the "old money" wealthy people around here drive early 2000s Toyotas and live in decent sized homes. The "new money" folks around here have Escalades, Range Rovers, and giant homes they can barely afford.

 

[Ducked]

It's Sticking It To THE MAN.

That is reward enough.

 

[Hollow]

Originally Posted By: dwcopple
Originally Posted By: Hollow


Currently have a 2003 Subaru with 162K that's paid off but needs some pricey repairs (new exhaust system due to rust, new back hatch due to rust, leaking head gaskets) pending.

How is that possible? Do you not wash it? How much snow do you get in the south? Do they salt the roads?


Car spent 12 years in Chicago, parked outside 24/7/365.

 

[supton]

Originally Posted By: Hollow
Originally Posted By: dwcopple
Originally Posted By: Hollow


Currently have a 2003 Subaru with 162K that's paid off but needs some pricey repairs (new exhaust system due to rust, new back hatch due to rust, leaking head gaskets) pending.

How is that possible? Do you not wash it? How much snow do you get in the south? Do they salt the roads?


Car spent 12 years in Chicago, parked outside 24/7/365.


My VW did similar, but in its case it was a known issue, pinch weld didn't get properly sealed up.

 

[Hollow]

Yeah, that's rather what it looks like, as the rust is coming up from the bottom of the hatch. Not structural yet, but will be. And the handle/lock mechanism is having issues from what I imagine to be internal corrosion.

Easiest repair option is to just pull a solid hatch off a not rusty wreck and move on.

 

[BrianF]

As was previously stated, which I would like to reiterate: I think it pays when you are mechanically inclined and do the work yourself. I do a majority of my own work. I shop around for parts prices, tire prices etc so when I go to a shop I am informed on what things cost. For instance: when I replaced the spark plugs on my 2011 Ram 1500. Other than the cost of plugs, which I found was pretty consistent across the board, the dealer wanted 3.5 hours at 100+ an hour to change them. The also push them to be changed at 60,000km. So I did them at 87,000km as the truck was still running as smooth as ever. They looked great for that age and I did them in less than 2 hours, with a cold beer and my youngest sitting under the hood and talking with me.

For someone who did not know any better they would have changed the plugs much earlier and at a much greater labor cost.

Being capable and educated make owning an older vehicle much more viable.

 

[claluja]

Haven't sold a car since 1990 - wouldn't know how to Have traded 1 in in that time, and drive the others until they drop. Don't know if it's a good idea or not, just my way.

 

[Lubener]

The ones who do not care of what others think of your car, pay cash for a used car, do their repairs themselves and have no car payments throughout their working years are the ones who comfortably retire early and enjoy life.

 

[ls1mike]

Originally Posted By: Lubener
The ones who do not care of what others think of your car, pay cash for a used car, do their repairs themselves and have no car payments throughout their working years are the ones who comfortably retire early and enjoy life.


I feel like on BITOG people make a lot of assumptions on how much people make and what they put away in savings based off the car they drive.
No one here knows what I make or what anyone makes for that matter, but you can find out easy enough because my wife and I work for the Federal government.

Could I afford a 50 to 60,000 dollar car? Sure, but instead I picked up a 20,000 dollar car. No one here can assume how well someone is saving for the future based off they type of car they drive because everyone's financial situation is totally different.

You also can't say what life enjoyment is. I enjoy cars as my overall hobby and it is what I enjoy spending my disposable income on. It is totally different for everyone. Chances are if the Caprice would not have come along I would still have the Grand Prix, but I like having the 6.0/6L80E for those times it is absolutely necessary to do a big smokey burnout.

I would not be happy driving a 2007 Corolla with 100,000 miles on it.

Having said all that I will keep the Truck, Trans Am and Caprice for as long as I can. I have found three vehicles I really love and are super easy and cheap to maintain.
The Malibu, I like it and will continue to keep it as long as the wife enjoys it.

 

[emmett442]

Originally Posted By: ls1mike
Originally Posted By: Lubener
The ones who do not care of what others think of your car, pay cash for a used car, do their repairs themselves and have no car payments throughout their working years are the ones who comfortably retire early and enjoy life.


I feel like on BITOG people make a lot of assumptions on how much people make and what they put away in savings based off the car they drive.
No one here knows what I make or what anyone makes for that matter, but you can find out easy enough because my wife and I work for the Federal government.



Yes and no.

Truly wealthy people understand that it's not about what you make (mistake #1 is that this is your first area of focus), it's about what you do with what you have. That's why they're wealthy.

Sadly, most high earners aren't any more wealthy than their lower income peers. Why? Because the more they make the more they spend.

Cars are the most common expensive consumable one will buy in their life. Nothing else depreciates as much. That said, while you can't determine their entire financial situation based on them, you can get a pretty good idea of their spending habits based on their vehicles - and those spending habits tell a significant part of their financial story.