Should we sell our car or not?

[Gemini9981]

Hi everyone,

My husband and I have a question for you. My husband has a 1999 Honda CRV. He wants to trade it in or sell it and get a newer car because he thinks that although it hasn't had any problems yet because it has over 100,000 miles and since it is 8 years old, it is better to sell it now before he starts putting money into it. He estimates he could get 5,000-7,000 for it now. Do you think it is better for him to sell it now or to drive it into the ground?

Other things to consider are that we have not purchased our first home yet and our primary goal is to save for our first home. He has about 10,000 in savings, so if he sells his car and gets a newer one which he likes better that will wipe out his part of our savings towards our home.

What do you think is the best thing for us to do?

I appreciate your advice.

Gemini

[poundwise]

Originally Posted by Gemini9981

Hi everyone,

My husband and I have a question for you. My husband has a 1999 Honda CRV. He wants to trade it in or sell it and get a newer car because he thinks that although it hasn't had any problems yet because it has over 100,000 miles and since it is 8 years old, it is better to sell it now before he starts putting money into it. He estimates he could get 5,000-7,000 for it now. Do you think it is better for him to sell it now or to drive it into the ground?

Other things to consider are that we have not purchased our first home yet and our primary goal is to save for our first home. He has about 10,000 in savings, so if he sells his car and gets a newer one which he likes better that will wipe out his part of our savings towards our home.

What do you think is the best thing for us to do?

I appreciate your advice.

Gemini

I would definitely keep the car. If the concern is that it has over 100K, that really isn't a big deal with a small-cylinder Honda. A 99 CRV ought to reach the 150s and upwards without any major problems and many reach and exceed 200K before people make a change.

Even my current GM six-cylinder has 100K. It just isn't that big of a deal anymore for a decent car to reach 100K and a better car to continue well past that range with minimal needs to address.

One thing that makes people lean towards getting a new one is that if and when a repair bill comes, on an older car, they are hit with the amount all at once and it hurts. This makes them want a newer car so that don't worry so much about getting hit with such a big bill in that manner again. However, if you simply put aside money each month for future car care, then it doesn't hurt so much and is easily realized as the less expensive way to drive.

For instance, if you get hit with a $1,000 bill in November on your older car, that stinks and you want to get rid of the car after that. However, if you have put back $100 a month since January, you just pay it and move on. Now, consider what kind of a new car could you drive for $100 a month? None. Most people buy a new car and pay $400 a month using the explanation that now they don't have to spend money on repairs. If you keep the old car and put back $400 a month for 6 months, you have $2400. I think you see where I am going.

Of course, if one wants a new, or newer car, for other reasons, then that's different. But I wouldn't think that having 100K on a Honda is a real, viable reason for getting a new car; especially if you are saving money for another purpose.

[deca]

I drive a 95 Saturn with over 160K miles. I've never had any repair issues. I've done the routine maintenance, like oil changes, and new tires and wipers as needed, but otherwise I have spent very little on keeping this car running. I would have even higher expectations for a Honda. So, I think your husband is nuts to let go of a solid, paid-off vehicle, and to draw down your savings to buy something newer. If he just wanted a newer car, that would be one thing, but since you're saving for a house, it doesn't seem like a good move.

Maybe try to get facts to work with rather than speculation, though. You could try to find consumer reports ratings for that year of the car, find out what the long-term track record is for CRVs in general, etc. If you find out that people routinely drive them for over 200K with no problems, then your husband could let go of his worry, you know?

[JBinKC]

First of all the depreciation rate on your vehicle going forward will be very negligible and this is your big chance to save for a potentially appreciating asset- your house .

Definitely keep the car glued together. Honda has a great reputation of building a quality reliable lasting product. I had two Hondas and the only consideration for me departing with them was the body on an 1982 Civic and my 1988 Civic was totaled in a hit and run accident both cars were 14 and 12 years old respectively with mileage nearing 200,000 on both. Between the two of them I had about $2500 in repairs and maintenance on both of them over a 13 year period which is absolutely amazing. I wish I still had my 1982 Civic as they are becoming classics again in this day of high gasoline prices.

The only considerations I would make for a new vehicle is gas mileage, the lack of competent quality minded non dealership mechanics in the area or if you are one who has to keep an image either among peers or have a career that requires an "image". Otherwise I would keep that car as long as the body is in decent shape.

[bigsaver]

Keep the car. My car has over 200k on it and I still didn't spend one penny except for oil changes on it last year. Just take care of it and do the proper maintenance. You should also remember you will be saving a bundle on the car insurance due to the age and you may even want to consider dropping theft and collision to save a few bucks.

[lgslgs]

Our 90 Olds has about 180,000 miles on it. Last year it needed a major repair and we ended up replacing the engine. Cost was under $800 for a replacement engine (with 60,000 miles on it) and labor.

Sure, you might have a few repairs on a high mileage vehicle once in a while. But occasional big repairs usually add up to a lot less than the costs of buying replacement vehicles. Newer vehicles will likely have added insurance costs. And new or old, both will have maintenance costs and small repairs along the way.

I'm a firm believer in driving an old vehicle into the ground.

Lynda

[tinapbeana]

if you live in an area with property taxes on autos, your taxes are also much lower on an older car.

i ditto everyone else's sentiments: a properly maintained car whose make and model have no history of issues should last well past 100k in mileage. my '83 honda accord hatchback lasted until 175k. eventually i gave it up because i couldn't afford to track down the wiring issue it was having, but that was because i was a college kid at the time. any fiscally responsible adult would have been able to pay for the repair and keep driving that car another 25-50k miles or more.

[Tree0164]

Keep it! Hondas are one of those car brands that keep on going and going!! You can probalby get a few more years out of it

[MonkeyMama]

If it was me I'd keep the car. I'd consider it a baby myself.

[cschin4]

I don't know why people want to sell a perfectly good care "in case it might have problems". Do you sell anything else in advance because of what "could" happen? If you are worried that the car will break down, etc, then get an AAA membership. And, if it were to break down along the road sometime, so what? You have it towed to the garage and get it fixed. All cars need some work done at some point or another.
Buying another car sounds like a good way to sabatoge your plans for a home.

[project15]

Are you sure he doesn't just want a new car because it's a new car? I'm sure he's had the CR-V a while and wants something different. I've had that feeling before and know that I'll make other excuses to avoid letting this excuse get into the light since it's really not a justifiable excuse financially

[Ima saver]

As much as I like new cars, I would keep it and put the car payment money into your new house fund.

[Snoopy2645]

I agree keep on saving for a house the car can wait a home though is something I think you should consider the sooner you buy the cheaper it will be if you have to start from scratch on saving for a house the 60k house may cost 80k in 5 more years or even more than that. So yes please keep saving for a house. I drive a car with 150k miles on it but guess what at 30 I have a house thats paid for. DH he drives a brand new truck & the house is mine. I keep telling him I hope for the price the truck cost he can live in it. But you see where I am going with this you cant live in your car well at least I dont want too.

[CoryWM]

Buying a new car will never save you money. Even if you blow up your engine, you drop 3k and get a new one with labor. and know you have another 100k+ miles. You can take any car shell, and totally rebuild it, and have a brand new car, for thousands less than you'd buy one from a dealer.

Having a new car is a convience. I'd be leery myself of buying any new car at the moment. I forsee great strides in cars in the next couple of years. High gas prices + consumer demand for greener cars, means in a couple years, your dollar is gonna go alot further in terms of efficiency.

[Fern]

I woudl definitely keep the car you have. Hondas last a great deal longer than 100,000 miles and you'd have to spend quite a lot of money on repairs to make paying at least $15K for a new vehicle worth it.

By keeping the current vehicle, you also save on car insurance and if you're in a state lilke CT, on car tax. If your car was a gas guzzler i would have a different answer, but Honda's one of the best.

I suspect your husband really just wants a new car.

[Homebody]

I think you should sell the car...... TO ME!!

[Gemini9981]

Thanks everybody for your help! I will show my husband all these replies.

Gemini

[click4credit]

Honda's are great cars and keep going and going and going...The most important thing is to make sure you keep it well serviced on a regular basis. Cars are not a good financial investment and buying another car with an unknown history could lead to more problems than your trouble free CRV.