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Keep current car, or go shopping?
MHYoshimitzu
Registered User regular
Registered User regular
Without going into too much detail, I had a bit of car trouble last year and had to make some quick financial decisions which led me to driving my current vehicle (99 Mercury Cougar with about 100,000 miles on it, and I now know through research is notorious for repair issues). Said vehicle has about $3000 left on an auto loan being paid out over a 36 month period starting in June of last year. I have made more than the monthly payment whenever possible but the next bit should put into perspective why this has been difficult.
Since then, I have switched jobs and am making a bit more money, but my savings account was nearly wiped out by purchasing this car. It has caused me no end of problems. The major repairs done on the car so far are including, but not limited to: a new crankshaft positioning sensor, new battery, new alternator, and driver's side lower control arm.
I'd estimate the repair costs of the car have now outweighed its value (Again, about $3000 in top condition, so I would break even on the loan if I were very lucky trading it in), and the repairs keep coming in: I saw smoke coming from the passenger's side of the engine block when driving home Friday afternoon from work, so it will be back in the shop this coming Friday. The car also needs new tires, new brakes, and possibly new rims but this is normal wear and tear.
Now, this is a 13-year-old car that has been unreliable in getting me to work, which has also lost me money because I have had to call out without pay about a half dozen times to put the car in the repair shop. This looks bad for me professionally as well as financially. I desperately want to trade it in, but the amount on the loan and the fact that this car has consistently wiped out any amount of money I have put away makes this super difficult.
There is also the issue of my father being a co-signer for the title/loan and he recently moved to North Carolina for business (the car is registered in Pennsylvania). My stepmother, who is not on the title/loan, has a habit of controlling situations and has told me I am not going to be able to afford a more expensive car and to keep it, despite incurring monthly repair costs and barely staying afloat in my other finances (we're talking monthly "surprises" of anywhere from $300-800 to fix a new repair), so I feel like my family is forcing this car on me on top of all this.
Ignoring the issue with my parents, my thought is that trading this car in, even without a down payment, would be better in the long run than keeping my current car. However, there is a chance by owing $3000 on it that I may go underwater on the new loan and will not be able to put a down payment on another car.
Upon looking at used car sales in my area, it seems financially sound to purchase a brand new car rather than a used car because the price difference is pretty much negligible (i.e. a 2010 Chevy Aveo will go for $11,000-13,000 with 30,000-50,000 miles and no warranty but a brand new 2012 Chevy Sonic is just shy of $14,000 for a base model and a 5y/100,000 mile warranty). The problem is, once we get into that "new car" range, it becomes slightly out of my price range ($300 monthly payment plus insurance on a brand new car).
I should mention that I am living with a roommate currently and am independent/pay all my bills (cell, insurance, rent/utilities, and so on). If I only had to incur the cost of wear and tear on the car with the occasional "surprise" I would have an extra $300-400 a month I could put away, so I am living as comfortably as can be expected right now. I also have good credit and I can provide financial details if someone needs to know, I'm not shy about discussing how much I make.
I have been "saving" every chance I get but every time I think I am ahead a new repair for this car crops up. Welcome to adult life, I suppose. I feel like I have been thinking this situation over and over again without a solid grasp on how to go forward, and I need another opinion. Thanks to anyone who can provide a fresh perspective for me.
Edit- So, to summarize:
Major repairs done on the car since June: Crankshaft positioning sensor, battery, alternator, lower control arm. I also fixed the driver's side window myself because the relay was jammed and it wouldn't pass inspection.
Major work still needed on the car: Fix oil (?) leak on side of engine block, replace tires/rims/brakes, investigate why the car feels like it is slipping. Not sure if it is related to the oil leak or if it is something more serious.
Since then, I have switched jobs and am making a bit more money, but my savings account was nearly wiped out by purchasing this car. It has caused me no end of problems. The major repairs done on the car so far are including, but not limited to: a new crankshaft positioning sensor, new battery, new alternator, and driver's side lower control arm.
I'd estimate the repair costs of the car have now outweighed its value (Again, about $3000 in top condition, so I would break even on the loan if I were very lucky trading it in), and the repairs keep coming in: I saw smoke coming from the passenger's side of the engine block when driving home Friday afternoon from work, so it will be back in the shop this coming Friday. The car also needs new tires, new brakes, and possibly new rims but this is normal wear and tear.
Now, this is a 13-year-old car that has been unreliable in getting me to work, which has also lost me money because I have had to call out without pay about a half dozen times to put the car in the repair shop. This looks bad for me professionally as well as financially. I desperately want to trade it in, but the amount on the loan and the fact that this car has consistently wiped out any amount of money I have put away makes this super difficult.
There is also the issue of my father being a co-signer for the title/loan and he recently moved to North Carolina for business (the car is registered in Pennsylvania). My stepmother, who is not on the title/loan, has a habit of controlling situations and has told me I am not going to be able to afford a more expensive car and to keep it, despite incurring monthly repair costs and barely staying afloat in my other finances (we're talking monthly "surprises" of anywhere from $300-800 to fix a new repair), so I feel like my family is forcing this car on me on top of all this.
Ignoring the issue with my parents, my thought is that trading this car in, even without a down payment, would be better in the long run than keeping my current car. However, there is a chance by owing $3000 on it that I may go underwater on the new loan and will not be able to put a down payment on another car.
Upon looking at used car sales in my area, it seems financially sound to purchase a brand new car rather than a used car because the price difference is pretty much negligible (i.e. a 2010 Chevy Aveo will go for $11,000-13,000 with 30,000-50,000 miles and no warranty but a brand new 2012 Chevy Sonic is just shy of $14,000 for a base model and a 5y/100,000 mile warranty). The problem is, once we get into that "new car" range, it becomes slightly out of my price range ($300 monthly payment plus insurance on a brand new car).
I should mention that I am living with a roommate currently and am independent/pay all my bills (cell, insurance, rent/utilities, and so on). If I only had to incur the cost of wear and tear on the car with the occasional "surprise" I would have an extra $300-400 a month I could put away, so I am living as comfortably as can be expected right now. I also have good credit and I can provide financial details if someone needs to know, I'm not shy about discussing how much I make.
I have been "saving" every chance I get but every time I think I am ahead a new repair for this car crops up. Welcome to adult life, I suppose. I feel like I have been thinking this situation over and over again without a solid grasp on how to go forward, and I need another opinion. Thanks to anyone who can provide a fresh perspective for me.
Edit- So, to summarize:
Major repairs done on the car since June: Crankshaft positioning sensor, battery, alternator, lower control arm. I also fixed the driver's side window myself because the relay was jammed and it wouldn't pass inspection.
Major work still needed on the car: Fix oil (?) leak on side of engine block, replace tires/rims/brakes, investigate why the car feels like it is slipping. Not sure if it is related to the oil leak or if it is something more serious.
MHYoshimitzu on
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Blow through paying off that $3000 as quickly as you can and try to get about 20% or so together to put down on whatever kind of car you're looking to replace it with. I'd recommend either a Japanese car or a Hyundai.
Did you buy it from a dealer? If so, look into lemon laws in your state. Go back and talk to the dealer about what a piece of shit it has been. Check to see if you've got a warranty on it.
I have contacted a lawyer on this issue (again, same time frame) and I was told the car is too old and not worth enough money to take on the case, as I would need to hire a lawyer to make a claim. He could not think of any colleagues who would take the case either.
"Yes, it's a lemon, but no one cares about your shitty car" is the message I've gotten from people as a whole. The whole situation has been rather discouraging and, other than not buying from that dealership ever again and warning friends and family away from it like the plague, I don't believe I am in a position to recover money spent on the car.
If you're looking at buying another used car, stay the fuck away from American cars, especially anything over five years old. I've heard that Toyotas are generally a good deal right now, due to that whole thing with the brakes.
Also, why do you need a lower control arm? Wear items on that are ball join, and bushing. There shouldn't be any reason to replace the whole arm unless it was in a wreck.
As Casually Hardcore said, it's worth learning to do at least minor stuff yourself. I don't know about control arms (literally) but yeah, batteries and alternators? Don't pay a mechanic for that stuff.
...though I'd sure take it in for the 'one side of the engine is smoking' thing.
I'd look into doing it yourself, there's a youtube video for almost everything.
That said, if you do get another car, get a new one. It is easier to hide being upside down on a new car than a used one. Typically finance companies will approve a loan for 110% of the value of a new car, so if you can talk the salesguy down a few grand from sticker, you can get into a new car pretty easy.
I'd probably trade it in for a new Fiesta / Focus / Mazda 3 / something like that and enjoy the life of a new car, because if you treat it well you can easily keep it for the next decade and far longer if you want.
Look at biking, or biking to a transit hub or carpooling, the Jess you drive the far the less often it will break.
Call up your dad and have a chat with him, and ask him what his advice would be regarding the car, he may be willing to help you out, but don't ask for anything specifically because he us already doing you a huge favour.
Getting another loan to fix this loan does not appear to be a smart move.
Satans..... hints.....
This. And I will edit the OP to reflect the fact that these repairs were already done. The crankshaft positioning sensor, battery and alternator went at the same time. Since the CPS can really only be replaced in a Ford dealership (because no other mechanic I went to could figure out why a car would start perfectly sometimes, but not others), I went there and had all three repairs done at the same place. As an added bonus, I discovered the alternators in these cars typically don't last as long as in other cars, so I felt the 2 year Ford warranty on the repairs was a good investment.
Don't do an Aveo or a Sonic, get a slightly used base model Honda Fit. That's what they're ripping off for those designs anyway. If you can drive a stick, it'll save you another thousand or so off the price.
I don't have a problem with Chevy..its just that American car manufacturers haven't really gotten good at making decent & cheap cars. They make good cars..they just don't make cheap ones. This is why companies like Hyundai have the market share that they do - they make really cheap cars that everyone knows will fall apart after X miles. Contrast that with Chevrolet - they charge more and try to convince you that their cheap car is going to age like wine.
Do your own research, go drive an Chevy Aveo at the dealer, and then go drive a Honda Fit.
I plan on calling my Dad sometime this week to discuss this. Thanks for the suggestion.
As for biking/transit hub, I am not against it. I used public transit all the time when I was in school and for the first time in my life I have started exercising because I want to be physically fit. When I am home, I can walk to the grocery store and to the small shops in my area without issue. However, my current job is in NJ (I live in another state, across a toll bridge) and there is no way to get to the building without driving in some fashion.
My current thinking is if I pay down this loan as much as possible and try to get my father to chip in somewhat, the trade in value will override the current loan and I'll have something to put against a new vehicle. The question right now is what vehicle that would be, and whether it should be brand new or slightly used.
Again, money with a new car will most likely not be an issue: once I have a stable car/insurance payment with no surprise repairs (most car companies/dealerships offer free repairs within the first few years, right?), I can begin budgeting and paying down the larger loan through my current salary and the freelance work I've been doing. The problem right now is whatever money I have put away has gone toward these extra repairs, so securing that extra money to pay off this loan will be difficult, assuming I get no help from my parents.
Here's my list of cars that're awesome, affordable, and inexpensive:
http://www.ford.com/cars/fiesta/
http://www.hyundaiusa.com/elantra/
http://www.fiatusa.com/en/
Though, if I were in your shoes, I would get a used late 90's Corolla.
If you want a bit more upscale, look at theses:
http://www.ford.com/cars/focus/
http://www.kia.com/#/optima/explore
If you want a car that'll never die, get one of these:
I gotten my for ~$3000, 2007, 120,000 miles on it (though it's more like 300,000 miles with all the idling it did), and it just won't die. This car was suppose to be a beater, but it's outlasting just about every other car out there with minimum maintenance. The only down side is the price of gas, though. Also, due to its 'heavy duty' nature, expect to pay more for things. Brakes (doing them myself) costed me $300 compare to the $103 it took to replace the brakes on my mothers Grand Dam.
To elaborate, the car that literally lasted me three weeks (my previous car, a '94 Ford Escort) was a car I bought because my previous job told me to either find a way to show up or not show up at all, so I found a car in two days. It died because a cylinder misfired in traffic, blew my engine up and almost caused me to crash into the car in front of me at rush hour.
The car before that I lost in a bad rainstorm: I lost control and hydroplaned into a guard rail. It was a good car ('97 KIA Sephia), but an accident like that absolutely crumpled the car. No one else was hurt because it was late at night and I was able to move out of harm's way, thankfully.
My first car, a '93 Geo Prizm, lasted me two years before I totaled it by raked the bottom of it with a median I couldn't see in the city late at night. Completely my fault and I accept that.
So, I have done nothing but used cars for the last 5 years and have had varying results. One was definitely my fault, one could probably have been prevented, and one was a freak accident. My latest car has just been one expensive repair after another.
I have tried to do minor repairs myself when I can, but really, I'm just looking for a reliable car that will last me more than a year I can use to get me to work that won't make people stare when I pull into the parking lot at work. So, that's my justification, for anyone wondering.
also this site: www.driveyourdream.com
ALSO, I wasn't kidding when I said that "base" price you quoted won't be anywhere near that. I would also try and secure financing before ever setting foot in a dealership.
Also, that website looks awesome. I will check that out in a bit during my lunch hour.
Getting pre-approved is certainly good advice, but don't be afraid to explore manufacturers' promotional APRs. I was able to 0% financing on my Mazda3 that way.
And please take this advice to heart... DO NOT LEAVE WITH THE NEW CAR IF EVERYTHING ISN'T 100% settled. That means financing has been secured, papers signed, etc. Apparently this is a popular tactic for dealerships.
Buy new or buy a Japanese import that's around 5 years old. Nearly new isn't worth it due to no one letting them go for reasonable prices. If you do go used, find/have a shop available for repairs as stuff can just break sometimes.
While I'd steer you to used (for the value propostion) it sounds like you want a new car. I'm thinking a compact from Honda or Toyota. Also, do make sure to do regular basic maintenance, cause even a new car will get fucked if you don't change fluids on a reasonable timetable.
I had a same year Cuntour SVT. Pretty much all American cars that are not Corvettes are pieces of shit, of that era. Absolute shit. Like, they make Yugos look reliable.
Sell it, and don't look back. They are worth nothing because they fall apart so fast. I had the same problems with mine, where I started putting in significantly more money than the fucking bastard was worth. I say this with absolute hatred towards the car, the company and the designers. I really regret getting the car because it was a tremendous waste of time and money. And, to boot, the cars are vampires. They draw blood from you. If you need to do anything to the car, your scraping your knuckles or worse. The car will absolutely not let you reassemble it without a blood sacrifice.
The engines are mounted shitty. The transmissions are shitty. You'll get stupid electrical problems sooner or later. I've had parts break on the stupid thing that people say don't normally break on other cars.
Sell it for as much as you can, and get anything better. Most American cars didn't get good until 2004 or so, so look for things newer than that.
I like the idea of buying a gently used Japanese car. But I think you should see what I am looking at:
https://driveyourdream.secure.zag.com/used-car-landing.service?postalCode=19809&distance=75&tb=D
Compared to:
https://driveyourdream.secure.zag.com/configurator.html?makeId=2232&modelId=425&trimId=249763&upfrontPricing=Y
It's really no contest. The earliest model available, the 2007 Fit, has nearly 50,000 miles on it and is only a few thousand dollars less. This is true for the whole market right now.
Ensuring that I am the first owner of the car, that there are little to no miles on it and that a dealership will cover most, if not all the repairs on the car makes paying that little extra worth it.
It sounds like your finances aren't in the best of shape, so saving a few thousand dollars should be a big deal to you.
And for what it's worth, a '94 Escort and a '99 Cougar are both shit cars. Be a little more careful about what you're buying, and you're going to have a much better experience; this goes for both new and used cars.
A car like yours has to be bought with cash, so that any repairs can be paid for in lieu of a monthly loan payment.
A better used car is something with 2-4 years and ~50K on the odometer. These are reliable enough that you can get a short loan on them.
And the final choice is new, for the reasons you listed.
So yeah... If you aim to keep your POS, then you need to learn to do repairs yourself, or you'll lose your shirt.