Another Used Car question

[elessar78]

We're looking to get a "new" car. A 4 door to replace my ten year old (165K miles) Honda Accord. I'm looking to spend $10K on the "new" car. I need to finance it, and I'll put down $1500*. My wife's recent unemployment and surgery put a dent in our cash savings.

We want a 4-door because we're planning on having another kid this coming year. We currently have another car payment that will be done in 17 months. I could pay it off faster, but we're only losing less than $200 in interest in that time span. Right now, I'd rather have cash in the bank.

We wanted to buy a four door when our first kid was born, but decided to tough it out and two years later we're still here, happy as clams. So we're glad we didn't buy another car. However, now I need to buy new tires (approx $400), pay the deductible for a hit and run dent on my door ($500), and spend about $250 to repair the power doors which just quit on me. Is it advisable to put $1150+ into a car that's toward the end of it's life cycle? Or put that $1150, plus the whatever the Accord sells for toward the new car (so my down payment would be $1500+$1150+sale price of the car)? I could probably sell it for $2000, with the dent and the door and all.

So, what's the advice? Suck it up? We're also looking to purchase our first home in the next year so I'm trying to limit my financial commitments.

Overall our financial picture is pretty sound now. After paying our bills, we have about 62.5% of our paycheck(s) left. We contribute to our 401k and both our companies have a pension plan.

[bjl584]

If I were planning on buying a different car then I absolutely wouldn't put any money into a 165K mile car, especially if I was trading it. Dealers usually mainly only care about year and miles. Even selling it outright, you probably aren't going to recoup the repair costs when you sell it.

I may consider not buying the car till your current loan is paid off. That way you won't be servicing two auto loans.

[elessar78]

If I were planning on buying a different car then I absolutely wouldn't put any money into a 165K mile car, especially if I was trading it. Dealers usually mainly only care about year and miles. Even selling it outright, you probably aren't going to recoup the repair costs when you sell it.

I may consider not buying the car till your current loan is paid off. That way you won't be servicing two auto loans.

thanks, the tires are a "need" at this point. If I don't put new ones on I'll have to do something about them come winter as the tread will just not do. Does that push my timeline up? I can write a check today and finish off the other car, but that would push our cash reserves at this point pretty low.

[LivingAlmostLarge]

What do your cash reserves look like? How much is left on the other car? How long to build it up? What's your time frame if you were putting tires on? Next Spring?

[cypher1]

If you plan on selling soon, just sell it as is and be done with it. But if you plan on keeping longer I'd definitely get new tires, since those are more of a need for safety. If you really want to go cheap, you could get used tires in the meantime for probably half the price if you're not keeping too long. Just remember you get what you paid for.

[elessar78]

Cash reserves are at $3500. There is $2400 left on the other car and I can use some money out of our checking account so I wouldn't pull that entire amount from the reserves.

Kinda embarrassing and I feel I need to justify that it is only like this because one of us went through an unemployment spell last year and doctor's bills just got done being paid off last month. As well as other "emergency fund incidents" the preceding years.

Timeline if I didn't need new tires would be next March (assuming we got pregnant tomorrow). The door dent thing is annoying, but really cosmetic apart from any concerns about rusting, there is a sliver along a crack of paint, but it's superficial. Insurance company said they will not cover it if rust sets in but I think this is minor. The power doors are again, an annoyance but does not affect the drive of the car.

[bjl584]

thanks, the tires are a "need" at this point. If I don't put new ones on I'll have to do something about them come winter as the tread will just not do. Does that push my timeline up? I can write a check today and finish off the other car, but that would push our cash reserves at this point pretty low.

I've had luck in the past buying used tires. There was a local guy in the town that I used to live in that sold used tires for $19.99 a piece installed. Most of them still had 50% or more of the tread life left in them. That may be an option to buy you some time. Just be sure to buy the same tread pattern for both front tires or they will wear wrong.

[LivingAlmostLarge]

Don't buy another car until the second kid is almost here. If the accord runs, run it into the ground.

The tires will help also sell the car, after all I got advice on my thread to see if all four tires match! That's an indicator of how a person cares for the car.

[JBlock]

When you avail a new car, make sure that you're freed of other financial responsibilities.