Comments on: Why Newer Cars Don’t Save You Money

By: Erin

Erin — Fri, 19 Oct 2007 20:48:43 +0000

Great advice, just don’t forget about the great, reliable, and extremely safe older BMWs. I drive a 1993 BMW 325i. It has 188K miles and these cars are known to go 250K+ so I trust this car will last a long time. At last check (6 mos ago) my mechanic said all was in good shape. I’ve had a couple of expensive years ($2000) with this car. (Still a whole lot less than an average car payment.) But most years I spend less than $500 on maintenance. Not bad for $6100 purchase 7 years ago. Plus I love it! It is a luxury car and I don’t feel like I’m driving an old beater!

By: livingplanet

livingplanet — Mon, 05 Mar 2007 16:31:50 +0000

alan,

till it became a marriage issue , i worked on 3 MBs from college onwards. two of them were ‘74-75 116-118 bodies, the third was like yours, although a 200 MB Gas 123-body. the 123-models (yours) are roomy, safe, powerful, and yes can run on biodiesel. once restored, they are a sight to behold. classic, timeless lines ( i love the sound of how the door closes!). scour the junk shops and MB clubs in your town, you should be able to get some cheap and in-very-good shape spare and replacement parts. good luck!

By: alan

alan — Mon, 05 Mar 2007 16:20:29 +0000

ok, so, after careful consideration and a lot of good things to think about from this post, i have bought a used car!
now, it may not be the most practical, or economical, but it certainly isn’t the least practical either.
ok, so it is a 1981 mercedes benz 300sd with 129000 original miles.
a diesel behemoth, but it gets 22mpg and up to 30mpg (if well maintained). i got it for $3550, and have no regrets what so ever. the body and interior have extensive sun damage, but the engine is as stout as they come. it came with *complete* service records, receipts for filters and all parts, carfax (though i had my own), original documentation and manuals, and it is running great! all inspection receipts matched the carfax perfectly.
the other choice i was weighing was a honda civic with 89000 miles. he was asking for 5900. my budget was $6000 so this way, i have a couple thousand left over for spare parts, engine work, and cosmetics. i may even do the mod to run it on waste veggie oil.
while it may end up costing much more than owning a civic, i am super happy with it, and that is what is important to me. it seems to be a good alternative to your regular used car choices. i have always wanted a cool old car, but never wanted to get such a gas guzzler.
it is brown.

By: Mapgirl’s Fiscal Challenge / Carnival of Personal Finance #90!

Mapgirl’s Fiscal Challenge / Carnival of Personal Finance #90! — Mon, 05 Mar 2007 13:32:12 +0000

[...] Finance Advice presents Why Newer Cars Don’t Save You Money. Jeffrey plays devil’s advocate here and writes, ‘Many people believe that once a car [...]

By: Hon

Hon — Thu, 01 Mar 2007 02:08:03 +0000

I only buy used Toyota or Honda due to excellent results and drive them 10 yrs. I buy privately if possible and examine the service book on the test drive. I have purchased rental cars as a second options without problem and carry on routine servicing based on service book suggestions. After driving my 1982 Tercel for 10 yrs., I gave it to my teenage son who drove it through HS and university. By then the body was hideously rusted but it ran without problem. He did his own oil changes as it was too embarrassing to take it to Quick Lub.

By: David Weliver

David Weliver — Wed, 28 Feb 2007 14:24:53 +0000

Great points here. I tend to think the used vs new car decision is very personal. I know some people don’t mind paying the extra money for a new car for the peace of mind it brings them, and others to whom $5k would be WAY too much to spend on a car.

By: Amber

Amber — Wed, 28 Feb 2007 01:34:15 +0000

Actually, I did. I got a call about it this morning, there was no damage and they took a few items that would really have no value to anyone but me. Of course. I’m just glad to get it back. I picked up The Club. Yes, I know that doesn’t do much than deterr but if it gives them pause then I’m ok with that. The insurance guy I talked to said even with The Club, 15 seconds and a hacksaw and he’d still be able to steal my car by cutting into the steering wheel (as opposed to cutting into The Club).

By: Amy L. Fontinelle

Amy L. Fontinelle — Wed, 28 Feb 2007 01:22:59 +0000

George,
You raise a good question. I’d say there really isn’t a definitive answer here, though. While there are certain things (like a timing belt) that definitely need to be replaced at certain mileage milestones, mileage isn’t really the best indicator of how worn out the car is. The climate the car has lived in, how well it’s been maintained, and how it’s been driven are better indicators of a car’s condition and value.

Alan,
I am not sure how to get a vehicle history report for free, but I know a way you may be able to save money on it. Carfax allows you to purchase either a single report for $19.99 or unlimited reports for 30 days for $24.99. If you can find someone who has already purchased the second option, you may be able to convince them to run a VIN check for you for free or for a reduced fee. Try Craigslist.

Also, I don’t know much about auto auctions. I have looked into them before, and I’ve found lots of websites promising deals that are way too good to be true (and if they are true, they’re probably getting snatched up by dealers anyway). I’ve also found that many auctions take place at times and locations that I can’t get to because of my work schedule. Personally, I wouldn’t feel comfortable buying a car that I couldn’t have inspected by a mechanic first.

Samerwriter,
You make good points about the possible drawbacks of purchasing a rental car. Personally, I tend to take excellent care of rental cars for fear of getting stuck with some kind of damage fee when I return the car. I think the problems with purchasing a formal rental car can probably be avoided by running a Carfax report and having the car checked by a mechanic before you buy it.

Amber, you’re right. None of us are immune to theft, unfortunately, and I have heard that Hondas are commonly stolen (I think it’s the common, popular cars that are most targeted). I hope you get your car back soon.

By: livingplanet

livingplanet — Tue, 27 Feb 2007 15:09:44 +0000

a car’s troubles shouldn’t stress you, your spouse, or children first thing in the morning. that’s the bottomline requirement. it should get you ‘there’ safely and comfortably. a pre-owned car driven far from the coast and protected from the seasons, preferrably with minimal electronics (think MBenz of the 70s and 80s restored), with service records are best and cheapest. the best advice i read, never finance your car!

By: Amber

Amber — Tue, 27 Feb 2007 01:05:27 +0000

I definately see your point overall but the one thing I slightly dissagree with is this statement: ‘I feel like criminal types probably wonâ€™t mess with me if I donâ€™t look like I have anything for them to take. ‘

I felt that way too. Until this morning when I went to leave for the gym and my car was gone. I have a 14 year old Honda Accord. It’s not the prettiest out there, it’s not tricked out, it does have nicer than stock rims but even those are pretty beat up from me mis-judging the curb when paralell parking. I had nothing of valuable in the car period, the only thing visible was my gym shoes and a local area coupon book.

When I get it back, yes I still expect to do so, I am investing in The Club. I love my Honda, it’s got a million miles on it (ok just over 200k) and it just keeps on going. I want it back so I can run it to the ground. It’s all paid for too, I haven’t had to make car payments in 1.5 years. *sigh*