Tired of this car

[gf1723]

Well I've been trying to save up a for a replacement car. I've been putting $300 away per month but my car has had to be in the shop once every two months for the past year or so. This time I almost had an electrical fire because smoke was coming out of of the steering column. It happened at a friends house this weekend. So now it's sitting there until I can get it towed after the holiday.

I'm tired of all the stupid repairs that are costing me hundreds of dollars. I've more money into this car the past year than it's worth (03 Grand Am). I'm using money out of my EF to get it towed/fixed and then I'm gonna go out and get a new car within a month or so. Looking at getting a 2009/2010 Honda Civic. Since they are still relatively expensive my parents said they would pay for the car, and I would pay them the full price over the course of time without any interest. I figure I'm putting $300/month away anyways, so I'll just do it with a newer car and just give that money to my parents. Now I'll have the peace of mind that I can get around town without worrying about my car breaking down!

[disneysteve]

While I understand being fed up with the current car, be sure you don't overspend on the new one. If you can afford $300/month, the most you should be spending is about $10,800 (3 years of payments). A quick search on AutoTrader.com shows 09-10 Civics going for 17-24K. I would urge you to shift your focus to an older/cheaper car that fits your budget of what YOU can afford, not what your parents can afford.

[MonkeyMama]

Agreed with Steve.

I see too often the belief that the only choice when it comes to cars is new and very expensive, or old and very crappy. I've personally driven a number of extremely used cars that never gave me any troubles. There are probably miles of middle ground between these two extremes.

[maat55]

I'm a bit more conservative, I would not buy more than 7200(two years).

[disneysteve]

Originally Posted by MonkeyMama

I see too often the belief that the only choice when it comes to cars is new and very expensive, or old and very crappy.

That is often the impression people seem to have. What about an 06 or 07 for example. I haven't looked but that might bring you in the ballpark of your price range while still having a car with a lot of good years left to it.

Of course, this advice comes to you from a guy who drives a 1998 Camry that I bought used in August 1998, 13 years ago, as a dealer demo. It is probably worth about 3K today and anyone who got it right now would be getting a darned good value - except I'm not giving it up yet.

[krantcents]

There are a lot of good cars in the 4-5 year old class. Many of the more economical ones are in the $10-12K range. You car probably has some value which would reduce the purchase price. Good luck!

[disneysteve]

Originally Posted by krantcents

You car probably has some value which would reduce the purchase price.

Yes, I forgot to bring up that point. What can you realistically get for your car? If you can get 5-6K, than what you are looking at might not be that far off. Maybe one year older for the Civic and you'll be right in line.

[gf1723]

My car is worth $3000 (tops) for a trade-in, so I'm expecting a dealer to low-ball me and give me $1500. I went and looked at a lot of places around here. The oldest I could find was a 2008, and it was JUST as expensive as the 2011 on the lot! Used cars are so expensive these days, in some cases more than the newer ones. I'm hoping to put down 3K on it, plus the trade in value. My parents have told me that I might as well just get a newer model since some of them are cheaper.

Basically my parents are gonna write me a check, and I will write the dealer a check.

[disneysteve]

Originally Posted by gf1723

My car is worth $3000 (tops) for a trade-in, so I'm expecting a dealer to low-ball me and give me $1500

So don't sell it to a dealer. Sell it yourself on craigslist and get what it is actually worth, or close to it.

I went and looked at a lot of places around here. The oldest I could find was a 2008, and it was JUST as expensive as the 2011 on the lot!

You couldn't find any used cars earlier than 2008? Where were you looking?

I have read that used car prices have been much higher lately but the same as a 2011 seems extreme. Why would anyone possibly buy the 2008?

I'd suggest you keep looking. Check craigslist, autotrader and other used car websites for a car that fits your budget.

[MonkeyMama]

Agreed with selling the car private party. Craigslist. Dealer will give you bottom dollar.

The last car I sold for $3000, the best dealer offer I got was $1000. I sold 1-2 days, by the way.

[MonkeyMama]

Originally Posted by krantcents

There are a lot of good cars in the 4-5 year old class. Many of the more economical ones are in the $10-12K range. You car probably has some value which would reduce the purchase price. Good luck!

Heck, there are tons of good cars in the 1-year-old range in this price range.

[riverwed070707]

It's easy to get excited about the possibility of a new car but the excitement wears off quickly. Even if it means something a little older, I definitely wouldn't buy something you'll be paying on for more than 3 years even if it is interest free -- so much can change in that time and if you want to free up your $300/month to do something else, it will be much easier with a smaller loan. You're parents are very generous to do this for you, but don't trap yourself into having this payment for the next 4-5 years.

[seen]

Just thought I'd put in my 2 cents.

3 years ago I bought my '04 Civic (4 yrs old at the time) at 65k miles for $8600 (private seller). To this day it has never once given me engine problems (currently 135k on it). However Civics, just like any other car, suffer from mechanical damage over time. Some things sooner than later.

I did my research and found the best car that I could, but even still there are going to be minor things you can't account for which will cost money. In my case, almost right off the bat I had to fix the fuel door lever (water erosion, common problem with Civics at the time), and a year later I ran into electrical problems with my windows, as well as having to replace my sun visors due to poor design.

I don't know how long you've had your current car, but buying newer doesn't necessarily mean you won't run into these kinds of problems either depending on how it was treated by the previous owner, so keep that in mind when paying out of your parents' pocket. That $300 /month you're paying them may end up having to go towards your car sooner than you think.

[disneysteve]

Originally Posted by seen

buying newer doesn't necessarily mean you won't run into these kinds of problems either

In fact, buying brand new is no guarantee either. In fact, brand new opens you up to unforeseen problems, manufacturing defects, recalls, etc. We bought a new Chrysler minivan in 1996. It was recalled 5 times during the 4 years we owned it before it was destroyed by a fire in our driveway that was determined to be due to a manufacturing defect. We'll stick with cars with a bit of a track record and the kinks already worked out.

[MonkeyMama]

Originally Posted by disneysteve

In fact, buying brand new is no guarantee either. In fact, brand new opens you up to unforeseen problems, manufacturing defects, recalls, etc. We bought a new Chrysler minivan in 1996. It was recalled 5 times during the 4 years we owned it before it was destroyed by a fire in our driveway that was determined to be due to a manufacturing defect. We'll stick with cars with a bit of a track record and the kinks already worked out.

So true.

It seems most of the people I know with SERIOUS/ongoing vehicle issues bought brand new. Which is a double whammy - because not only does the vehicle SUCK, but you paid a TON for it.

Buying older vehicles, I feel we know what kind of problems to expect. & which vehicles to avoid. & if we still make a mistake - we just aren't out that much.

[beinstein2005]

Sometimes buying a brand new car gives you that peace of mind where you don't have to worry about breaking down on the road. I used to drive a beat up old honda accord, until it continued to overheat. I got tired of spending my paycheck fixing the car. I went out and bought myself a brand new toyota corolla(this was in 2004). It only had 3 miles on it. I still have the car today, granted I've ran that thing to the ground with 150k miles in it now. However, it has never broken down on me and I've never had to spend money on it besides routine maintenance costs. You'd be suprised at how smooth the car still drives even at 150k miles. I look back and buying it brand new was a great LONG TERM investment because I still have probably another 50k miles in the car.

[disneysteve]

Originally Posted by beinstein2005

Sometimes buying a brand new car gives you that peace of mind where you don't have to worry about breaking down on the road.

That isn't true at all. As noted above, sometimes new cars, especially new models or newly redesigned models, suffer from the most mechanical problems.

I look back and buying it brand new was a great LONG TERM investment because I still have probably another 50k miles in the car.

A. A car is not an investment. An investment is something you buy with hopes of making a profit. Cars are depreciating assets.
B. It would have been an ever better deal had you bought a 2 or 3 year old low mileage car. Your average annual cost of ownership would have been lower since the steepest depreciation in value would have already occurred at someone else's expense.

[snafu]

Suggest you drop by library and look at Lemon-Air [Phil Edmunds] and Consumer Report to review their findings. Which cars/models had the least recalls, least serious fixes. Toyota parts are difficult to get these days due to Tsunami. Check where the particular car you are interested in was made USA or Canada?

[Frugal]

I know. We have a 2004 Pontiac Grand Am (owned outright, no loans) that is having some problems lately. Minor, but the expenses add up if you don't do routine maintenance. The other car we have (mine) is older, and requires 0 repairs. It is a 1991.