Car payments: maintain or buy?
Published 11/26/2007 – Cars Tips – 0 comments
Assuming one can afford to buy a newer vehicle, why pay to maintain an old one? For the maintenance records I kept over the last 2 years of my ownership (2005-2007), when maintenance costs were highest on my 15-year-old 1993 Chevrolet Lumina, I spent over $2800 (including regular oil changes, a new air filter and one windshield replacement) to keep it running. That includes trying to get the best deals on parts and labor, by going to national repair shops that claimed to offer the best prices for one type of repair (brakes, glass, etc.). Here's what I got for $2800:
- New rear brake pads, resurfaced rear rotors, new front rotors, cleaned and lubricated calipers, new battery, remanufactured alternator (third one in my ownership), new serpentine belt, new rear struts, alignment, transmission fluid flush, power steering hose replacement, new heater bypass hose for engine coolant leaking problem, electrical systems diagnosis (when it wouldn't start), which led to the purchase of a new starter.
That worked out to a car payment of around $120 a month, or even less when I spread it out over more years. With only the legal minimum auto insurance covering the car (from a discount insurance provider of course), holding on to my old beater made economic sense. Ultimately however, the myriad minor issues (some with workarounds), combined with the stress of relatively expensive and unpredictable repairs, and the inconvenience of getting those repairs done, diminished the value of the money I was saving. Goodwill has a vehicle donation program offering free pick-up and a reasonable tax deduction for the donor. I took advantage of that and now will get a small tax credit on the sale of the vehicle.
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