In the past while I’ve noticed that my car has been needing repairs more often, and I’m getting to the point where with a 7-year old vehicle the repairs are increasingly costing more. Should I buy a new car? Some of my friends and some family members have suggested I lease (!) or buy a new car. HAH, fat chance on the first one. I’ve known from the time I began thinking about getting my license that a lease isn’t a good deal. In fact, one of my siblings ended up leasing and I harass her regularly to start saving because at this rate she will not be able to afford the buyout at the lease expiry and will be sucked into another lease. Anyway I’ll leave my rant on the rip-off leasing industry for another post.
Back to the topic, I think I’m making the right choice here but I feel like I need some reassurance from others on this one. Should I buy a new car? … or stick with it.
I bought my 2004 base model Chevy Aveo in January of 2006. It had 24K on it, one female owner and was dealer serviced to that point. It’s a base model, doesn’t even have a tape deck! Just the radio, the manual windows are the AC and of course it’s not an automatic. I bought it at a fair price and ended borrowing about $6,400 from the bank to pay for it. I paid the loan back by late 2007. (if memory serves me)
I’ve been driving car-payment free for more than 3 years now and I love it! Honestly, once you’re done tackling your creditcards… pay off your car! One of my friends is doing the same thing, she’s a few months away from paying off her car in full because at some point she realized that the $200+ payment every month would be really nice to have back to spend on other things. I feel the same way, I will NEVER again voluntarily buy a car on a loan. Which leads me to the title of this article; The car-dilemma.
My car is about 7 years old now, so far I’ve put very little money into it and that’s going to change this year. I think my repair bills have been $500 max per year so far including tire and oil changes. I counted on spending about $900 a year on repairs when I bought it so I’ve got some wiggle room to catch up to the budget.
Unfortunately I need to replace my summer tires this year, they were already disposed of last fall by my mechanic. My winter set will last one more winter but will also need to be replaced next year. On top of that I’ve got some stuff that will need to be fixed:
1) a ‘clunking’ noise in the front driver wheel well -> Turned out to be something-something links. Spent $360 in repairs in the last few weeks on that, oil change and patching a flat tire & balance.
2) a clutch bearing, or something, when I push the clutch something makes a loud whirring noise, quoted at $1000 inc labour*
3) an axle something on the rear-right.
(notice how great I am at describing car parts?) I was told that repair #2 can wait until it basically breaks one of these days and #3 was temporarily fixed two years ago but is acting up again. I’m told the part for problem #3 alone will run $476 + a few hours of labour. Also, at a recent servicing I was told I need to look at the brakes soon… and don’t forget, those new tires I need. Yikes.
I’m really wishing I knew more about cars at this point… That’s a lot of money and a lot of time in the garage this year and I’m not quite sure yet how I’m going to pay for it. Obviously my student loan repayment is going to suffer but I cannot be without a vehicle: no public transit + I live in country + I need to be able to get to customers and work, so I don’t have much choice. The brake-thing will be resolved by me going to buy the parts myself (hey maybe I can order online, suggestions?) and my father installing them but that’s the extent of our techy-car-savvy.
Some of my friends and some family members have suggested I buy a new car instead. I tell them they’re nuts! They argue, why would I put a couple of grand into my old car? I’ve argued that I will put upwards of $3000 into my car per year to keep it driving, I would/will even replace the engine if I have to, which is generally met with scuffs and laughter. Honestly though, buying another car will increase my insurance premium because a new car costs more to insure and will need full coverage if bought on a loan. Buying another car will mean borrowing, something I just mentioned I will NEVER do again. Buying another car isn’t actually cheaper! I would end up with a car payment of about $200 a month or about $2,400 a year + maintenance and repairs OR I can keep driving my little car and just fix it and have no monthly obligations on the thing. And most importantly; buying another car doesn’t solve the problem, the new car will also eventually get old!
Seems like a fairly easy choice to me but a lot of people do not understand this, what do you think? Do you drive a beater or a new vehicle and why?
Ps: I’m keeping an eye on my vehicles maintenance schedule using this maintenance guide.