New car buying strategy

[gfh77665]

In the past, I would buy a vehicle every 10 years or so, and drive it into the ground. Now being set in retirement, I don't need to drive anything to the end anymore. My question is, when is the optimal time / milage to trade in a used car (not truck)? I never considered this much before.

Something like 8 years, 100K miles? Seems to me that's about the point where lots of expensive maintenance and / or repairs begin. I am not really asking about depreciation, although I know that's a large factor. Asking more about the impact of rising maintenance and repair costs.

 

[cptbarkey]

Get the longest and best factory-dealership warranty you can afford. Once that approaches the last few months, go shopping again.

Or go the opposite, invest in something used and proven and refresh everything maintenance wise, keep a small budget for things. Ignore what others think the value of that vehicle is. Its obsessive, its unhealthy. I set the value myself. This mindset is working good for me and i'm not retired. Haven't even thought of replacing them.

 

[gfh77665]

Yes, I am asking about my current vehicle. Trying to time the trade in..

 

[rstsco]

At the rate new car prices have risen, it may be more practical to drive it into the ground. Then again, if you like having a new car once in a while, treat yourself to one when the urge is greater than the need, regardless of the years or mileage.

We bought a new Pilot last year because we want a vehicle which we hope will last us until the car keys (fob) are taken away from us. We paid $3k for 8 years/120k miles HondaCare warranty. Should it die after that, we'll see where we're at.

 

[bdc101]

It would seem to me that expensive repairs start at different times depending on whether you're talking about a Toyota or a BMW

 

[JayhawkRoy]

Based on my past experiences with Outbacks, have decided to sell or trade around 140K- 150K miles. 154K is when a CVT went out on the most recent one. Still got a decent price from Carmax with its known issues.

 

[KCJeep]

Trade every 6-7 years and/or 80k and you will almost certainly be money ahead on the warranty purchase unless you choose poorly. And you stay in new/newish vehicles. JMO.

 

[JunkdrawerDog]

Something like 8 years, 100K miles? Seems to me that's about the point where lots of expensive maintenance and / or repairs begin.

I think you have it pegged about right. That's roughly the measuring stick I've used for years. Keep it maintained well enough to get that far then trade it before any big ticket items come up. If you keep the car clean and looking good, you'll get a decent trade in value.

 

[FZ1]

In the past, I would buy a vehicle every 10 years or so, and drive it into the ground. Now being set in retirement, I don't need to drive anything to the end anymore. My question is, when is the optimal time / milage to trade in a used car (not truck)? I never considered this much before.

Something like 8 years, 100K miles? Seems to me that's about the point where lots of expensive maintenance and / or repairs begin. I am not really asking about depreciation, although I know that's a large factor. Asking more about the impact of rising maintenance and repair costs.

Best time is when the automaker has factory to customer cash back offers. Could be up to $2500. Otherwise, drive it into the ground to minimize the cost, over your lifetime. You know the car you are driving, so keep it vs. buying a used car. Repairs are cheaper than a new car. If you are about to travel, into the Sunset, go buy whatever you want.

 

[Hirev]

I think it depends on make and model of vehicle. Some vehicles just age more gracefully than others. Since I retired 9 years ago I get about 1/3 the miles on my vehicles these days as I did when working. So there is that part of it.

 

[The_Jeff]

You're looking for value, which is what nearly everyone is looking for.

Since I assume you're trading in, you may want to do so while the selling dealer is able to get a bank loan on your trade when he resells it to a third party. The eight year, under 100k mark is traditionally where this is/was but they can also do in-house buy-here, pay-here sales.

If you watch car value sites like KBB you might see a cliff you can jump out of before you hit it, but used car values are always in flux as buyers look for the value which I mention in my first sentence. I bought my first new car (a Prius) a few years back when I noticed the depreciation curve was a flat line, so I figured I made my own best pre-owned cars and just bought with zero miles.

Assuming your car is fuel efficient, a spike in gas prices will make it more attractive. But if you're trading for a similar one its price will be higher too. Conversely If your car winds up having a "known problem" you want to run away before "everyone" hears about the problem.

 

[The Critic]

Yes, I am asking about my current vehicle. Trying to time the trade in..

I would say that any vehicle that is still eligible for the OEM's CPO program is probably a good gauge of desirability. In general, I think anything under 6 years old and 60K tends to be pretty desirable for trade-in.

 

[Cujet]

The cost per mile calculation is often illuminating. As a new car is rarely more than 5c per mile more than keeping an old car. Once all the various issues are correctly factored in. Depending on miles driven, insurance costs can be more than any other single expense.

My F-Type Jag is something like $4K/yr. I drove it 2000 miles this past year. $2 per mile. Let's say I drive it 7K miles next year because I sell my beater car. That's still 57c/mi.

Capital costs on the car, even with a Jag's wild depreciation work out to be about 30c per mile. Any way ya slice it, gas/repairs/registration/insurance cost more than the car itself, per mile.

As a fairly new retiree, I'm starting to understand just how companies empty my bank account. It's not the car, it's everything else. It is time to cut my losses, drop Allstate, get minimum coverage and spend less money.

 

[gfh77665]

I already know my car is not worth much on paper. Its in excellent, excellent condition, but its value has largely already depreciated. Not concerned about that. My question really is, what is the point to avoid the escalating maintenance and repairs. Its at 9 years and 103K "all highway" miles. I don't want to do expensive front end struts and timing belt replacement, for example.

At the moment I think I can safely drive it to maybe ~130k without much more than regular PM, like oil changes. From that viewpoint, I think that 130K-135K might be as far as I should go.

 

[97prizm]

In the past, I would buy a vehicle every 10 years or so, and drive it into the ground. Now being set in retirement, I don't need to drive anything to the end anymore. My question is, when is the optimal time / milage to trade in a used car (not truck)? I never considered this much before.

Something like 8 years, 100K miles? Seems to me that's about the point where lots of expensive maintenance and / or repairs begin. I am not really asking about depreciation, although I know that's a large factor. Asking more about the impact of rising maintenance and repair costs.

5-8 years and 70k miles. Keep in mind type of vehicles etc. If you have a low mileage convertible you'll get more for your trade in early spring than late fall.

 

[gfh77665]

Great advice all, but I am not concerned about trade value.

Its about what mileage and age to avoiding expensive replacements and repairs.

 

[Leo99]

I already know my car is not worth much on paper. Its in excellent, excellent condition, but its value has largely already depreciated. Not concerned about that. My question really is, what is the point to avoid the escalating maintenance and repairs. Its at 9 years and 103K "all highway" miles. I don't want to do expensive front end struts and timing belt replacement, for example.

At the moment I think I can safely drive it to maybe ~130k without much more than regular PM, like oil changes. From that viewpoint, I think that 130K-135K might be as far as I should go.

I usually drive them until they start needing frequent repairs that I can't handle myself or I question the reliability. Although at 63, I'm starting to question how many new cars are in my future.

 

[CKN]

In the past, I would buy a vehicle every 10 years or so, and drive it into the ground. Now being set in retirement, I don't need to drive anything to the end anymore. My question is, when is the optimal time / milage to trade in a used car (not truck)? I never considered this much before.

Something like 8 years, 100K miles? Seems to me that's about the point where lots of expensive maintenance and / or repairs begin. I am not really asking about depreciation, although I know that's a large factor. Asking more about the impact of rising maintenance and repair costs.

Your best trade in is before a vehicle hits 100,000 miles. If you trade it to a dealer-this gives them better options on many levels....

 

[bdc101]

It's certainly super weird reading this on a forum literally dedicated to taking care of cars, to hear people talking about trading before 100k miles. Why even worry about what oil you are going to use if you're just going to trade it in before 100k?

 

[RaymondP]

Usually buy used low miles with a couple of years in age. This enables me to save on a "better" vehicle (Porsche, BMW, Mercedes) due to my lower initial drive away cost versus "new" at the dealership. Starting to look as my current vehicle is a 2016 BMW 328i manual transmission. with 80K on the clock. Love it. Nothing wrong but anticipate a new battery this year ($200), and a new clutch in the next 2-3 years ($2,600 at the shop). Do everything myself whenever possible but also know my limitations.

Biggest problem I have is there is nothing out there that really wets my whistle. Manual transmission has almost disappeared, and the few that remain are mated to ultra-high-performance engines with the associated high cost of entry or are under powered. BMW, Audi and even VW no longer offer a stick sadly. Tried a few automatic options but can't enjoy.