Please let me vent my car frustations

[Emerald]

I have an 11 year old truck with 185,000 miles, poor gas mileage, and a questionable transmission, among other repairs on the horizon. I also have an elderly mother who has trouble getting in and out of the vehicle, so it's time for the truck to go.

For the past several months, I've been looking for a small, economical hatchbacks or wagons, preferably 2-3 years old, less than 75,000 miles, and 30+ miles to the gallon. Between my car fund and truck value I have about $10,000 to spend. So far I haven't found anything promising in my immediate area (within an hour’s drive), and I'm very frustrated. I'm finding few cars that meet my specifications, and they are usually over my price point or have salvage titles. I would be willing to spend more at this point, but the local selection is poor and I'm worried I'm running out of time. I'm also spending a fortune on rental cars driving back and forth to visit my mother (12 hours round trip).

For the first time I am seriously considering a new car. With my down payment/trade in, I could buy a relatively affordable new car (say a Hyundai Accent or Honda Fit), get a warranty, and keep payments well under the recommendations. I could finance for 3 years with payments less than $250, which is well within my budget. I would also save upwards of $100/month on gas, which I would put back into the car payment to pay it off within 2 years. I also confess the thought of a warranty and zero miles on a car really appeals to me at this point. With the driving I do back and for to my mother's house, and with her health problems, having a reliable vehicle is a must. This would be my third vehicle in 17 years, as I buy and drive till the wheels fall off.

Ugh. As much as I hate buying new, I am really tempted.

Thoughts?

[Andrew Jackson]

You wouldn't be willing to budge on your criteria? Why not 3-5 years old and less than 95,000 miles?

[bjl584]

A 3 year loan with a $250 a month payment doesn't sound bad to me. Rule of thumb for car financing is to not get more than a 3 year loan and to make sure that the payment is no more than 10% of your monthly take home. I will guess that you are within that criteria. I've bought a few new cars in my time. There is nothing quite like a brand new car with a bumber to bumper warranty, zero miles, and zero problems. There is absolutely nothing wrong with buying brand new if you can afford it. It sounds like you can.

[disneysteve]

Originally Posted by Emerald

This would be my third vehicle in 17 years, as I buy and drive till the wheels fall off.

As much as I hate buying new, I am really tempted.

Thoughts?

I bought my car one year old in 1998, 13 years ago, and I'm still driving it just fine so I know how you feel.

The current market is kind of unusual. Partly due to the economy and still due to the effect of cash for clunkers, the used car market is a challenge. There are actually cases where a brand new car is the same price or even cheaper than a 2-year-old model of the very same car. In those cases, obviously the new car is the way to go.

And if you live in an area where the supply is limited, you might either have to travel more or lean toward the new purchase.

[disneysteve]

Originally Posted by bjl584

There is nothing quite like a brand new car with a bumber to bumper warranty, zero miles, and zero problems.

I learned long ago that brand new does not equal zero problems.

We bought a 1996 Dodge Grand Caravan. It was recalled 4 times during the 4 years that we owned it before it was destroyed by a fire in our driveway determined to be due to a manufacturing defect.

My cousin just bought a brand new Hyundai Genesis. It was back in the shop within a week after the check engine light came on. It turned out to be a faulty sensor and it took them nearly a week to get the replacement part shipped in to make the repair.

I could tell lots of other stories where new did not mean trouble-free.

[Emerald]

Originally Posted by Andrew Jackson

You wouldn't be willing to budge on your criteria? Why not 3-5 years old and less than 95,000 miles?

I'm just not comfortable buying a high mileage car, unless I bought from a friend and new car's history. I would probably feel differently if I drove mostly local, say within 20 miles of my house and mechanic. Then, I would gladly drive a beater around town and save money.

But, I'm on the road a lot. I commute 40 miles a day, and make solo long distance trips (12 hours round trip) at least monthly. So, safety and reliablity are at the very top of my list.

[bjl584]

Originally Posted by disneysteve

I learned long ago that brand new does not equal zero problems.

We bought a 1996 Dodge Grand Caravan. It was recalled 4 times during the 4 years that we owned it before it was destroyed by a fire in our driveway determined to be due to a manufacturing defect.

My cousin just bought a brand new Hyundai Genesis. It was back in the shop within a week after the check engine light came on. It turned out to be a faulty sensor and it took them nearly a week to get the replacement part shipped in to make the repair.

I could tell lots of other stories where new did not mean trouble-free.

That's true. But none of those issues on a new car cost the owner any money. Time and aggravation yes, but no money out of pocket. Even with an extended warranty on a used car there is usually a deductible. And on a used car bought without a warranty, you are paying out of pocket. Not that I am against buying older used cars. But, if a new car makes sense financially, then there is nothing wrong with buying one.

[YLTL_Dan]

It sounds like you've already rationalized your purchase of a new car, but I still advise against it. As I explain in "Why new cars suck", if you can't afford a car with cash, you can't afford it.

Rationalization is a dangerous game, especially when it comes to financial decisions. I rationalized my purchase of a $28k car even though I couldn't afford it; after hating payments for two years, I finally sold it and bought a used car for cash. My wife's current car has 140k miles and mine has 125k miles... and I still consider them both very dependable.

There aren't any cities between you and your mom on the 6 hour trip? I may just be ignorant of the current conditions of used cars, but I have a hard time believing you can't find anything within your specifications.

[MonkeyMama]

Originally Posted by YLTL_Dan

It sounds like you've already rationalized your purchase of a new car, but I still advise against it. I may just be ignorant of the current conditions of used cars, but I have a hard time believing you can't find anything within your specifications.

Very agreed with these statements. & very agreed with what Steve said about new cars not always being so great.

If you can really afford the car, is one thing. If you do buy the car, keep paying yourself that $250/month, once it is paid off. The should be able to easily pay cash for your next car.

We've had really good luck with prior rentals - particularly in the spring. The dealerships are big on clearing out old inventory in the spring. I've seen several friends get brand new cars at used prices in March/April. Anyway, as far as rentals, I am not talking about popular models with high miles and questionable drivers (like I wouldn't buy a sports car that was a rental). But, some of the smaller/less popular models are dirt cheap and low mileage. The dealerships have had great prices, in my experience, but you can also buy directly from rental companies.

[Emerald]

Originally Posted by YLTL_Dan

There aren't any cities between you and your mom on the 6 hour trip? I may just be ignorant of the current conditions of used cars, but I have a hard time believing you can't find anything within your specifications.

As a single woman I am not willing to drive several hours to meet random car sellers or test drive their vehicles.

Furthermore, I have not found car seller willing to let me drive their car back to my city to have my mechanic check out the car. And I would never buy a used car without having my trusted mechanic thoroughly check the car.

This is why I have limited my serious searching to a 1 hour drive from my home. So far, I have found few viable options within my price range.

I am open to suggestions.

[bjl584]

Originally Posted by Emerald

As a single woman I am not willing to drive several hours to meet random car sellers or test drive their vehicles.

Furthermore, I have not found car seller willing to let me drive their car back to my city to have my mechanic check out the car. And I would never buy a used car without having my trusted mechanic thoroughly check the car.

This is why I have limited my serious searching to a 1 hour drive from my home. So far, I have found few viable options within my price range.

I am open to suggestions.

If you are going the used route, have you considered buying a used car from a dealership and not a private owner? They would most likely be more willing to work with you so far as letting your mechanic go over the car. Also, they have access to inventory searches and are fairly networked with other dealers. They should be able to find the car that you want. They would probably even be able to deliver it to their dealership if they found something that you like that was several hours away.

Others may have had goodluck with buying old rentals, but I wouldn't buy one. My cousin worked for a rental company while he was in school, and I saw what went on there. No certified mechanics, just a bunch of minimum wage late teens that abused the heck out of the cars. There may be a good deal out there, but I will pass. If you go that route have your mechanic check it over completely.

[Emerald]

Originally Posted by bjl584

If you are going the used route, have you considered buying a used car from a dealership and not a private owner?

Yes, I have looked there as well. I think I read somewhere on this forum that it's better to buy from a motivated private seller than a dealer trying to make a profit, so I hoped to get a better deal from a private seller.

I also realize I may not be able to find the vehicle I want in my current price range. I don't think my truck will hold out long enough to save more.

These last 4 years have been one major expense after another. I am so tired of this. Thank God for an emergency fund, though. I just wish I had more saved at this point.

[feh]

If you keep the new car until it dies, I see no problem w/ a new car if you can afford it.

[bjl584]

Originally Posted by Emerald

Yes, I have looked there as well. I think I read somewhere on this forum that it's better to buy from a motivated private seller than a dealer trying to make a profit, so I hoped to get a better deal from a private seller.

I also realize I may not be able to find the vehicle I want in my current price range. I don't think my truck will hold out long enough to save more.

These last 4 years have been one major expense after another. I am so tired of this. Thank God for an emergency fund, though. I just wish I had more saved at this point.

You may get a better deal upfront from a private seller, but there are other factors to consider.

1) How long are you willing to wait to find a motivated seller that is selling what you want?
2) Dealerships usually will have better selection and offer warranties and financing.

You can get great deals by buying from a motivated seller, but as you are discovering, it can take a long time. It sounds like you may need to get something fairly soon, so dealing with a dealer may be a better option for you.

[YLTL_Dan]

Originally Posted by bjl584

Others may have had goodluck with buying old rentals, but I wouldn't buy one. My cousin worked for a rental company while he was in school, and I saw what went on there. No certified mechanics, just a bunch of minimum wage late teens that abused the heck out of the cars. There may be a good deal out there, but I will pass. If you go that route have your mechanic check it over completely.

I traveled with my job and always used rental cars... I definitely would never buy a rental car! One time we rented a car (mini-van) and as soon as we drove it we knew something was wrong. It sounded like the brakes, shocks, and automatic steering were all bad. We brought it back to them and they proceeded to tell us they don't have mechanics that can fix all of that... and it's the recession so they have to keep their cars longer!!! He made it sound like we should feel sorry for them when our life was in danger

Emerald - it sounds like you've had a rough couple of years... it's great you've been able to maintain the emergency fund though. However, I do think your patience will pay off if you work hard to find the right deal.

If you pay a couple of hundred dollars from a credible used car dealer, I think it's still better than buying a new car. Plus you don't have to worry about meeting strange people out of town w/o your mechanic looking over the car. It sounds like you're taking the right steps... good luck!

[MonkeyMama]

On the rentals - to be clear, that is why I specified lower mileage vehicles that are less popular. No one is joy riding them and they don't need any work. GREAT buys. There are several vehicles I would NEVER buy if it was a prior rental. I clarify because let it be clear that I don't think buying a Prius or a Camaro is a good idea - if it was a rental. OF course, the terrible buys tend to be high mileage and so aren't a good deal anyway. Then you just get a car with high mileage that has been used and abused, and is way over-priced. I wanted to be clear that is not something I recommend!

I think ANY used car should be checked out by a trusted mechanic.

[LivingAlmostLarge]

We couldn't find where we live a 2 year old subaru that cost less than what we bought our new one for. I had been searching for 6 months and had many friends tell me that it couldn't be done. Problem? Demand in the area. People love and keep them and drives the prices ridiculously up. Elsewhere? Probably. But in CA when we lived there Honda Civics were ridiculously overpriced used.

[JustBill]

Originally Posted by Emerald

For the first time I am seriously considering a new car. With my down payment/trade in, I could buy a relatively affordable new car (say a Hyundai Accent or Honda Fit), get a warranty, and keep payments well under the recommendations. I could finance for 3 years with payments less than $250, which is well within my budget. I would also save upwards of $100/month on gas, which I would put back into the car payment to pay it off within 2 years.

Ugh. As much as I hate buying new, I am really tempted.

Thoughts?

Whoa, don't hate buying a new car. If you feel certain you have steady employment ahead of you, you're already going to add the gasoline savings to the payment, and as much as I NEVER THINK ONE SHOULD HAVE A CAR PAYMENT, I'd buy the Honda. You'll have no out of pocket repair expenses for the life of the loan (unless you suddenly go nuts with mileage and outrun the warranty), you likely would have some repair cost on the 185k truck, plus you'll save on rental car cost, and possibly on insurance on a newer, more safety feature rich vehicle. You're close to doing the deal in cash, I would encourage you to stretch to make that happen if possible. Otherwise, enjoy the car.

[dojo]

I bought a new car in 2008. It was around 13,000 Euro. 4 years to pay it, around 250/month. I LOVE IT. Don't quite enjoy having the payments, but in 4 months I'm done with it. I don't regret the car though. It had 4 km on it, when I got it, brand new. It's got just over 20,000 km in 4 years (I don't drive it a lot), so it would be with me for the next 10 years, since I really take care of it. A new car is pricey, but in my case it really came with zero problems.

[disneysteve]

Originally Posted by LivingAlmostLarge

We couldn't find where we live a 2 year old subaru that cost less than what we bought our new one for. I had been searching for 6 months and had many friends tell me that it couldn't be done. Problem? Demand in the area. People love and keep them and drives the prices ridiculously up. Elsewhere? Probably. But in CA when we lived there Honda Civics were ridiculously overpriced used.

One thing that is often forgotten on message boards is regional issues. I live in the Philadelphia metro area. I can search for pretty much any make or model and find pages of them for sale. But in other areas, the supply is much more limited. Prices also vary by region for the exact same vehicle.