My mom is giving me her old car for me. It's a 2006 Ford Fusion with 206k miles. It's been very reliable and still runs nice. I have been looking at used cheap cars none really look better than the Ford. How long should I keep this car for since it has a lot of miles and people say you shouldn't repair a car with 200k miles on it.
How long is it financially smart to keep a old car for?
byu/lamparkinglot inpersonalfinance
Posted by lamparkinglot
27 Comments
People don’t know anything. If it runs well and has no issues, keep it as long as you can.
Until the car is no longer practical to repair. If it is currently reliable and running well, that’s a car that’s practical to use, maintain, and make reasonable repairs to until that changes.
Anytime you get a repair bill, figure out how many car payments you can make for the same amount of money.
Repairs are almost always cheaper then replacement.
lets say you have a $2000 repair every year but otherwise its decent. Thats 3 months of a $666 car payment on a new car (which is less than a lot of people pay)
I keep cars until its more expensive to fix it, then its worth. I have a 26 yr old truck that is still mechanically sound after 225k, zero reason to get rid of it.
We kept a 1998 Taurus, nicknamed ‘Skelataurus’ running until 2014 with well over 200k miles. The rule was once annual repairs exceeded $3500, the rig went to the auction block via trade in on something else.
If that Fusion has the 2.5L non-turbo 4-cyl. In it and has been maintained, it’s likely good for at least another 100K miles. This this are darn near bullet proof.
I’ve had my 1996 Tacoma for 30 years and never had a car payment. It has 180k miles on it and it’s never ever once been in the shop before.
I don’t know how much more financially smart my old truck could possibly be.
2012 Sentra, 150k. Even if I need a new engine or trans, it will still be cheaper than buying a new car.
Good for your finances, great for the environment. As long as it’s not a hazard to you or others and the repairs don’t cost a significant portion of the underlying you are good to go. Car and unpaid credit car payments are the biggest wealth destroyers of the middle class.
Till the wheels fall off as long as the repair costs are cheaper than a car payment
You sound young and most likely don’t have a lot in retirement savings, so I would tell you to keep using that car.
It’d be different if you well already meeting your retirement savings goal of 25% of gross income.
I have a 2007 Toyota Yaris which runs well and cost me nothing aside from maintenance and even though I dislike that car looks, it’s been hard for me to replace it for a newer one (I have been thinking this for 3 years and counting) because it runs so well.
How much do you have saved up for a new car?
2003 Honda Civic hybrid here. Had to replace the original hybrid battery once for about 3k, and the tires a couple years ago, but no other significant repairs. Has a few dents and scratches but I wear them with pride because they show I’m not the type of shallow person who cares more about appearance than function 😉
I’ll drive it until it’s no longer drivable, or I’m no longer able to drive!
Those are the Toyota Camrys of Ford. Arguably the most reliable cars they ever built. While you’re driving it, keep it well (aka slightly over)maintained.
Think of how many car payments the yearly maintenance and repairs add up to. Think about how many car payments you haven’t had to make, and won’t have to make for the next 60-84 months.
When something breaks or wears out, go ahead and get it fixed, don’t let it add up…and ask your trusted independent mechanic if there’s any “while you’re in there” work they can do with just the parts cost, and minimal added labor expense (ie, you need new coils, spark plugs won’t be much more labor).
Drive it until something breaks that pisses you off, because it’s more expensive than you want to pay to repair.
You should bite the bullet & repair it, then sell it private party. If you don’t repair it, disclose the problem in your private party sale…or trade it in.
Though, if the engine or transmission dies, I’d probably get out of the car, because you could find a whole similar, well running car for what it’d probably cost to replace either of those.
1) it’s costing you more money in repairs than a car payment
2) it’s not reliable/safe enough and it’s putting your safety or career in jeopardy.
When a new car is averaging $50k and payment is averaging $900 you can bet your money I will be repairing and maintaining my older car. I mean even a $3500 transmission rebuild was worth it to avoid payments. Plus the newer cars are majorly sacrificing reliability in the name of fuel economy. You pay way more upfront, it doesn’t last nearly as long, and you get marginally better fuel efficiency. No thanks that’s a fool’s paradise. I paid $11k for my car and truck. I spend probably $3k a year maintaining them. No payments no interest. What I do is not for everyone, but I can’t see spending $60k for a stripped down f150 that sits in the driveway 90% of the time. A base model f150 costs $60k. That’s insane. I can spend $15k and put the other $45k to work in the market. In a few years the $45k will have paid for the $15k and then some.
Run it till it needs a major repair then decide if it is worth it until then you are saving tons of money!
Do you preventive maintenance, not just fluids and breaks, shocks/struts, ball joints, bearings.
Don’t let them pile up and be needed all at once. They are a bit costly but not car payment costly.
Insurance is also more costly on newer vehicles.
Proactively save for stuff. I paid off my truck and kept saving a lot of the payment. My truck is 10 years newer than your car. Breaks and shocks, AC and ball joints all done before I broke down and were less than half the payment I had over the time difference. But also vehicles got more expensive over that time, so getting another would be way more in payment and insurance. .
People talk like new cars have no maintenance costs
Until the annual maintenance costs out weigh a new to you’d costs. This isn’t rocket science.
Keep it as long as you’re happy driving it.
Consider if you have to fix a $2400 issue every year on it. That’s still a lot cheaper ($200/mo avg) than a new car payment. Also insurance will be a lot cheaper.
But, eventually, there’s some tech or feature that makes desire outweigh stubbornness to taking on a new monthly payment.
Pit money away you would pay to a car into a 90 day with draw high interest account. Save it so when in 5-8 years that car fails you have funds for new one.
Keep it as long as you possibly can. Start saving what you would be paying for a new car every month so you have something for a down payment or possibly the entire purchase of another vehicle when needed.
Ive posted this before but i have a 2009 Subaru Outback with around 198k miles. I finally tracked how much I spent in repairs last year it and was around $150 a month or $1500 overall. But YMMV depending how much you can DIY. I plan on keeping it until it dies for good.