This makes a lot of sense... but also factor in things like

Time and trouble taking it to the mechanic
Work time lost w/o a car... or rental while it's being worked on 
The unreliability factor... is it gonna leave me stranded somewhere...

Given my own personal experience.. once the car starts nickel and diming me
to death, I get rid of it. I've lost work time because I don't have the
equipment/work space to repair, I've been stranded in the middle of no
where. Etc.

-- 
Scott Stewart
ColdFusion Developer
 
SSTWebworks
4405 Oakshyre Way
Raleigh, NC. 27616
(919) 874-6229 (home)
(703) 220-2835 (cell)

-----Original Message-----
From: Billy Cox [mailto:[EMAIL PROTECTED] 
Sent: Wednesday, April 30, 2008 12:45 PM
To: CF-Community
Subject: RE: when to ditch a car?

I know this is the conventional wisdom, but it is based on a faulty premise
- namely that the resale value is the main indicator of your car's value. In
reality, the value of your car is based on it getting you from point 'A' to
point 'B' reliably and safely. 

Instead of comparing the cost of the repair to the market value of your car,
you should compare the cost of the repair to what you reasonably expect to
pay for a newer vehicle in one year.

So if your choices are a $1,000 repair on a $1,500 car or spending $3,600 (1
year of car payments at $300/month), it's already a no-brainer that you
should repair the car, but let's consider other expenses. In one year, your
paid-off (1998) car's value isn't going to go down much, but your newer car
could lose 20-40% of its value. You also have expenses related to buying a
newer car, tax title and license, as well as insuring the new car.

If one year of repair expenses is comparable to the cost of buying and
owning a newer car then it makes sense to buy a newer car if only for
reliability's sake.

The conventional wisdom is really just an excuse buy the new car you really
want before you really need to, and no car dealer is going to tell you
anything different.


 

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