Your opinion..keep the old car or buy the new one??

Question

I have a small SUV with 100,000 miles on it...now in need of multiple repairs month after month. I pay $403 per month for my loan....and the cost of repairs is about $1000 or more a year now.

I just priced out a new SUV...same one that I have...and the payment would only be $40 more a month than what I pay now.

Problem is...I put on about 30,000 miles a year for work and I need an SUV for the roads that I travel on (winter here is brutal). With that said....my warranty would be eaten up right away...and again, I'd be stuck with more repairs out of my own pocket.

So...is it smarter to buy the newer vehicle to save on repairs for now..or smarter to keep the cheaper payment with a ton of repairs now that my SUV is over the 100,000 mile mark.

I know which one is smarter, but just seeing what other people think. A trusted family member thinks it is stupid to buy the new SUV....anyone agree??

Answer 1

I wish I knew what kind of vehicle it was, so I could give you more specific advice.  Some vehicles last longer than others because they are better built, while others seem to take whatever you dish out without complaint.  It might pay to do a little research to discover what the typical longevity of your particular vehicle.

I think the first thing i would do is to take the car to a trusted mechanic (not the dealer) and have them give it a good once-over.  That way you will really know what kind of shape the car you own is in.  I would explain your situation to the mechanic and ask him what he would do if he was in your position.

If the engine and transmission don't look good, then I would sell the car and move on to a new car.  Either one is a big expense and will also keep you off the road for a while during the repairs.  If the mechanic doesn't see any big problems, and the problems you HAVE had are relatively small, like little plastic parts needing replacing, then I would consider keeping it for the short term.

Right now there is a glut of SUVs because people are largely looking for more fuel efficient cars.  That gives you bargaining power at the dealership, and also if you choose to buy a gently used one.  A lot of people got into SUVs and then were shocked at how much gas they guzzle, and they are now trying to sell them.  You might get yourself a good deal that way, also.

If you are driving that much for work you must either be far away from home for long periods of time, or have other people that need to count on you.  You don't need your car dying on you in that position!  That is something to think very serious about as well.

My rule of thumb with my past cars is this:  If the car needs three repairs costing three hundred dollars or more in a three month's span, I let the car go.  

I wish you luck!

Answer 2

It all depends on what's left to pay on your current vehicle.

can you sell the current vehicle and pay the loan off with the proceeds? I am concerned that your current SUV is costing so much after only 4 years on the road. Do you have the right vehicle for the job?

Can you get the current SUV in a state that it does not cost so much money every year? If the current SUV will be paid off soon then $1000 in repairs every year is way less than the $5000 a year you are spending on car payments.

Answer 3

I don't know about stupid.....it makes sense to put a 100 bucks or so a month into it ,and drive it till the wheels fall off.  

But ...but...you are the guy who is out there in the middle of nowhere, at night, in the winter on bad roads....you might do better getting a new SUV and jsut plan on trading in within 2 years.  Take an acceptible hit on the depreciation, put a good 2-3 grand down every 2 years, and have the peace of mind that you will get home safe every night.