I'm considering downgrading and buying a used car. I have a car loan on my 2010 and I still owe about $7000, but it's worth around $13,500 so I'm thinking about selling it/trading it in and buying something with the difference. So in other words, something in the $5000-6000 range. Maybe a little higher if needed, I have some cash savings that I could add if it meant a much better car (in terms of reliability, gas mileage, etc, not in terms of fanciness).
I have never bought a car in that range before. I do not want something that is going to require a lot of maintenance or need replacing in 3-4 years. I had hoped to keep my 2010 until 2020 (at least). So I'm unsure how old I want to go, or how many miles I should be considering on a car. And I know some cars get to higher mileage than others. What ones? Honda and Subaru - any others?
Post by illgetthere on Jan 27, 2015 12:13:36 GMT -5
I would try to stay under 65k or so since a lot of vehicles tend to need more maintenance/repairs at 100k. You might have to increase the budget some. Last year, we were looking at Accords for h. A 2003ish with 110k miles was still 7k. If you are wanting to cut the value of your car in half, think about what you currently have and if you are willing to have something nearly twice as old or with nearly twice as many miles.
Are you going to go with a smaller, commuter car? That alone will help, too, with both initial price and gas, of course.
I wouldn't personally buy a car with over 75k miles. But I do think you could find something else that's around 5 years old, which would also be a limit for me. My first car was 72k miles when I bought it, and it was 5/6 years old, one owner. A lot of people get rid of new cars around the 4 year mark. I'd just check that all of the routine maintenance had been done. Like I probably wouldn't buy something at 47k miles, because you're probably going to have to do things like flush the transmission, replace the brakes, maybe some new suspension components depending on the weather in your area at the 50k miles mark. So yeah, probably 60k-70k is the sweet spot for mileage.
I know volkswagens that have gotten to 200k+ miles, but I know people have mixed feelings about them. Also Volvos.
Are you going to go with a smaller, commuter car? That alone will help, too, with both initial price and gas, of course.
I wouldn't personally buy a car with over 75k miles. But I do think you could find something else that's around 5 years old, which would also be a limit for me. My first car was 72k miles when I bought it, and it was 5/6 years old, one owner. A lot of people get rid of new cars around the 4 year mark. I'd just check that all of the routine maintenance had been done. Like I probably wouldn't buy something at 47k miles, because you're probably going to have to do things like flush the transmission, replace the brakes, maybe some new suspension components depending on the weather in your area at the 50k miles mark. So yeah, probably 60k-70k is the sweet spot for mileage.
I know volkswagens that have gotten to 200k+ miles, but I know people have mixed feelings about them. Also Volvos.
Hmm. My car is about 4.5 years old and has 62k miles on it. I wonder if I'm going to find something in that range that is cheaper? Mine isn't anything fancy, it's a Jeep Patriot. Have you had luck buying cars in that range for around 5-6k or so?
I am really only interested in eliminating a car payment. If I'm going to end up with a payment anyway, I'd rather just keep my car KWIM? My payment is only $263.
We've had lots of luck with our Toyotas. Bought two new and traded the first in for the Lexus at about the five-year mark and 80K miles. I would have no hesitation at buying a well-maintained Toyota with even that type of mileage. I see ones just like my old Camry (and many even older) still on the road today. Ours was extremely well maintained, with regular oil changes and servicing. If you can find something like that it's worth the extra little bit because it will last you many years to come.
For something like a Kia or a small Chevrolet, I'd not risk that type of mileage. I'd be leery of anything over say, 40K. They start rattling a lot sooner than Toyotas and Hondas as a general rule.
I hear good things about Mazda but I'm less than happy with my CX-9 lately. The smaller ones are fine I suppose but I guess they're not meant to be big vehicles. (Feeling not happy about the control arm already needing to be replaced, plus blue tooth and two headrest monitors in a 2008.)
I don't know if I have a set number because it would depend on the type of car, I think. I would trust a Honda or Toyota with quite a few miles more than some other cars with fewer miles. A general number that makes my happy would be under 90k for that price range.
One thing I wanted to throw out there to consider is looking in to maintenance schedules for any car you consider. On my old Pilot the maintenance for 110k miles was $1400. If I had purchased at 90k or 100k I would be looking to foot a pretty hefty bill before too long. Different cars have different schedules so the 75k maintenance could be $1000 or $100 or there may not be a 75k maintenance at all.
I think I bought my Civic at about 8 years old / 90,000 miles for about $8K. We did have to do the timing belt, but overall, it's been a great car. It's a 2003 and I have no plans to replace it in the near future. I don't drive it much, so it's lasting very well.
Are you going to go with a smaller, commuter car? That alone will help, too, with both initial price and gas, of course.
I wouldn't personally buy a car with over 75k miles. But I do think you could find something else that's around 5 years old, which would also be a limit for me. My first car was 72k miles when I bought it, and it was 5/6 years old, one owner. A lot of people get rid of new cars around the 4 year mark. I'd just check that all of the routine maintenance had been done. Like I probably wouldn't buy something at 47k miles, because you're probably going to have to do things like flush the transmission, replace the brakes, maybe some new suspension components depending on the weather in your area at the 50k miles mark. So yeah, probably 60k-70k is the sweet spot for mileage.
I know volkswagens that have gotten to 200k+ miles, but I know people have mixed feelings about them. Also Volvos.
Hmm. My car is about 4.5 years old and has 62k miles on it. I wonder if I'm going to find something in that range that is cheaper? Mine isn't anything fancy, it's a Jeep Patriot. Have you had luck buying cars in that range for around 5-6k or so?
I am really only interested in eliminating a car payment. If I'm going to end up with a payment anyway, I'd rather just keep my car KWIM? My payment is only $263.
My current car is 8 years old and the KBB value is something like $4500. It's a Saturn Ion, so a compact car that cost about $17k when new. I think that's the key - if there are cars that fit your needs that start at less than $20k, they will lose at least half their value at the 4 year mark, on average. Granted, you said you only owe $7k. So you might end up spending that or more for a car worth less. But then, what good is the higher value doing you? It doesn't mean much except on paper. However, if it's a safer and more reliable car, then you are right that you might just want to run it into the ground.
I guess I'd just look at available cars in your area. And don't forget to compare future maintenance costs, like how much replacing brake pads on a civic would be compared to a jeep. That might help, too.
Post by illgetthere on Jan 27, 2015 12:59:20 GMT -5
I don't think jeeps are really known for their reliability or gas mileage. I'd look around to see what you can get in your price range but would consider going higher mileage or adding a tiny bit of money if it could get you a civic or corolla or something.
Edit: also, $263 isn't a really cheap payment. Even if you finance 3k to get something more reliable, you are looking at $50-75 for a payment. That $200 savings could probably pay gas and maintenance
Post by maddiepaddy on Jan 27, 2015 13:07:15 GMT -5
Personally, I wouldn't buy a car with more than about 40-50K miles on it. I'd be looking for longevity and reliability, but not necessarily the cheapest thing I could find.
However, I've seen some of your previous posts and I wonder if you might be better off looking for a temporary fix? Maybe find something as inexpensive (yet reliable- i.e. Honda or Toyota) as you can, bank the extra funds, and wait it out until your job situation improves?
Keep the mileage to no more than 12K miles per year of the car. Look at a used Honda, Toyota or Subaru ---- they last a L-O-N-G time and are very reliable. (Of course basic maintenance is always needed on all cars).
You generally will get more for your car if you sell it private party than as a trade in.
IF you need to finance a vehicle - do NOT finance longer than 3 years. When you cannot afford those payments, you are buying too much car for your budget.
Keep the mileage to no more than 12K miles per year of the car.
Why? I know that is around average, and more or less will alter the value of the vehicle. However, why should someone not buy a car that had average 14k miles/year or 16k or whatever.
My budget was entirely different when I bought this car (I was married and making around 10k more per year on top of it). If could turn back time, maybe I'd do something differently, but it is what it is at this point.
I really just don't want to have a car payment forever. I have just over 2 years left on this loan, so I hate to take out a loan on an old vehicle for 3 years and then have to turn around and replace it immediately. I can't decide if it makes more sense to just hang onto my car if it's only going to save me a little bit each month to downgrade. I could potentially get 4-5 years out of my current car payment free if I just paid it off. IDK.
I don't know what's happening with my job situation (currently, nothing), but I'm starting to think I may not be seeing a change in income anytime soon. I don't want to sell my car for a temporary fix (I can make it a few months with what I'm doing) but if this is the new reality, I need to cut something. Blah.
I did this last year. However, I didn't immediately buy another car. We had 3 vehicles. 2012 that I drove. 1998 4Runner that my husband drove with 140k miles, and 1998 f150 that we were given by my parents that neither of us drove, except when we needed a truck. So, I started driving my husband's 4 runner, and he now drives the truck. We saved the cash, and probably later this year I'll buy a late model minivan. I'm going to aim for early 2000's with less than 160k miles. We'll see.
I'd be more comfortable driving a Honda or Toyota with 100k than I would with a Jeep with 62k. If you could find one in the $5-$6 range I'd go for it.
Why is that?Â
I don't know for sure, but I think Jeeps are ok these days. Mine has run just fine so far.
I am going to be the dissenter and say I would probably hold onto your current car if I were you. I can't remember what your loan terms are, but $7k is not that far off from being paid in full. How many years/months do you actually have left on the loan?
I know you are looking for ways to cut back, but I'm not sure this is the best bet or that your situation absolutely warrants it, at least right now. If I recall, you said you still have savings and haven't had to touch it at all since you were laid off. Is that still most likely going to be the case going forward, or are you going to have to dip into savings?
I'm going to agree with Kadams--I'd probably suck it up and try to figure out other ways to cut back. I wouldn't want to buy a car with more than 65K miles on it and thats what you have now & you know its history/maintenance. I wouldn't want to trade my car for some unkown problem. And if you pay it off in 2 years and need to replace it in 2020, then you should be saving for the next one during that time with no loan to get ahead, right? However, if you really want to sell now, I'd look for a Honda or Suburu with 65-70K miles.
I am going to be the dissenter and say I would probably hold onto your current car if I were you. I can't remember what your loan terms are, but $7k is not that far off from being paid in full. How many years/months do you actually have left on the loan?
I know you are looking for ways to cut back, but I'm not sure this is the best bet or that your situation absolutely warrants it, at least right now. If I recall, you said you still have savings and haven't had to touch it at all since you were laid off. Is that still most likely going to be the case going forward, or are you going to have to dip into savings?
I have about 2 years left on the loan. I think it will be paid off Spring of 2017 at the current rate. I am sort of with you on this too. That's really not that much money in the long run, and I feel like it's less of a gamble than buying an older used car with a ton of miles on it. I'm torn.
Honestly, I don't know what my plan is next. I have no current prospects for a new job, so I'm trying to accept that this might be the best I can do. I don't know if or when my income will increase - I mean it has to eventually, but it could be months or years at this rate. I'm also 99% sure I'm going to apply to a graduate program, so depending on what happens there I may be headed back to school. I just feel like I need to reduce whatever costs I can, and this is one of the only fixed expenses I could actually change (I don't think I'm going to get cheaper rent, I don't have cable, cell phones are already a great price, etc).
But, I don't want to be too short sighted. With my current income I can pay all my bills, I just really have nothing left over to have fun, save for the future, cover emergencies, etc. So I CAN keep my car and keep paying it off, but I'm on the fence on whether or not that's going to work long term.
I'm sorry. :-( Did you hear back negatively from the university job?
Honestly, I can see why you are torn. I don't know that there is a right answer, because there really isn't a way to guarantee that you will make out better one way or the other in the long run. Have you browsed used car ads just to see what seems like availability is in that price range and your area? Maybe it would help sway you if you knew with a little more certainty what the $5-6k will buy you?
This probably isn't a popular suggestion, but can you run an amortization schedule on your current car loan and see how much extra per month would get you, timewise, towards full repayment? Knowing that you are a renter and still have some savings for e-fund purposes, I might also be tempted to put a little extra each month from savings if I could pay it off faster. That would get you extra time without a car payment and give you breathing room faster.
I'm sorry. Did you hear back negatively from the university job?
Honestly, I can see why you are torn. I don't know that there is a right answer, because there really isn't a way to guarantee that you will make out better one way or the other in the long run. Have you browsed used car ads just to see what seems like availability is in that price range and your area? Maybe it would help sway you if you knew with a little more certainty what the $5-6k will buy you?
This probably isn't a popular suggestion, but can you run an amortization schedule on your current car loan and see how much extra per month would get you, timewise, towards full repayment? Knowing that you are a renter and still have some savings for e-fund purposes, I might also be tempted to put a little extra each month from savings if I could pay it off faster. That would get you extra time without a car payment and give you breathing room faster.
Yeah, I didn't get the job. </3
I did browse ads a bit. I didn't see much, honestly. Lots of late 90's/early 2000's with tons of miles on them. I honestly don't know about paying it off early. That's really what I would like to do, but I don't have enough savings to totally pay it off so I'm hesitant to drain savings any faster than I have to. But, if I can somehow sustain this another year it might make sense at that point to just pay it off. I really don't know.
I'd be more comfortable driving a Honda or Toyota with 100k than I would with a Jeep with 62k. If you could find one in the $5-$6 range I'd go for it.
Why is that?
I don't know for sure, but I think Jeeps are ok these days. Mine has run just fine so far.
A lot of it has to do with my own experiences with the different products. Mr GT has a 1997 Accord with close to 150k miles on it that still drives fine and I just retired my 2000 Civic than had almost 200k on it.
Post by alleinesein on Jan 27, 2015 16:20:37 GMT -5
Start checking out Estate and Farm auctions in the quad cities area. You can sometimes find a very nice used car that belonged to a little old farm wife who kept it in the garage and only drove it once a week to church. Thats how my BFF finds all of his used cars for himself and his parents. They arent easy to find but when you do find one they are typically 5-7 years old with less than 50K miles on them and you can usually grab one for $5-$6k.
I don't know for sure, but I think Jeeps are ok these days. Mine has run just fine so far.
A lot of it has to do with my own experiences with the different products. Mr GT has a 1997 Accord with close to 150k miles on it that still drives fine and I just retired my 2000 Civic than had almost 200k on it.
chiming in as the owner of a 98 CRV w/ 165k miles on it .. needs a new timing belt but other than that it runs fine. when I got it last May, it had 149k miles on it.
Post by dancingirl21 on Jan 27, 2015 17:07:42 GMT -5
If I were you, I'd be holding onto your car. Reliability with a vehicle is huge, IMO. Especially since you drive so much.
We just traded our Jeep that hit 100k (it was paid off) and bought a new Nissan Pathfinder. We financed a bit of us so we now have a loan. But just having that piece of mind is worth it to me.
Post by mrsjuleshs on Jan 27, 2015 17:10:22 GMT -5
We bought my 2002 back in 2011 for $12.9K (SUV so more expensive). It had 75K miles on it. It's still going strong at 156K miles with only a few minor issues.
Post by UnderProtest on Jan 27, 2015 17:49:21 GMT -5
Honestly, I would look into picking up a part time weekend job in you situation. While I'm not a huge fan of Jeeps because of their reliability, it is questionable as to whether selling and buying an unknown used car would get you into a better financial position. I think you could pick up couple hundred bucks waitressing or working retail.
Edit- I see this was covered more in your other post. I think this is your best bet for the short term. Either weekends, babysitting, pet sitting or at LEAST online surveys and such to bulk up your income until you find a more permanent and better paying job. Maybe have your BF write the grocery lists/meal plan. If he was surviving on such a low food budget before maybe he has some tips and tricks.