When to fix a used car and when to dump it

G

gecko

2,500+ Posts
Any thoughts out there on where the tipping point is for fixing a used car or just unloading it...?

I have a 2000 Acura TL with 109k miles on it. A mechanic (who I trust) advises me I need about $1,800 in repairs - various things. Clean retail is about $8,000.

My repairs are nearly 20% of the value of the car. Are there any rules of thumb about when you stop repairing and start looking to replace...?
 
It's almost always more economic to repair an older car than to replace it. The $1800 is what, four car payments? That car will easily last a few more years, will still be highway reliable, and it probably paid for.
But everyone eventually wants to get a newer car, and that is a personal decision. If you don't maintain the car, and it has a broken door handle, and the sunroof quits working, and there is a dent in the back, and the tires are old...at some point you will get rid of it. But your car would last a few more years if it is in good shape other than those needed repairs.
I may be biased because I have a repair shop, but many people get good service out of their cars up to 200k and more these days. That's when you save money over making payments every month.
 
I have so much more than so many of my friends because I place no value in the status I might receive due to the car I drive. Car payments are for suckers. Repair it and smile while you imagine dollar bills floating out of the windows of all the late models you're stuck in traffic with!
 
Fix it. I went through this just two weeks ago.

I've got a '98 Subaru with 140k miles on it worth $4k at best. The clutch went out along with some related repairs cost me just over $1000. I really wanted to get a new car and it would have been great to get one. But, that $1000 is three maybe four car payments. I just couldn't bring myself to do it. I fixed the car and will likely not have any other major expense for another 40k to 50k miles.
 
Dude I've taken roadtrips longer than 109K miles. That puppy is just getting warmed up.

Even if you wanted to ditch it if it needed repairs to sell you wont get near whats its worth. Most people dont want to buy a car that needs work and if they do they will want a deep discount. Fix it.
 
Absolutely fix it. That car has at least half of its life remaining. I drove my last car for 18 years and 250K miles. My son just dumped his that he bought for cheap with 118K miles and drove for 7 years and put on an additional 125K miles. I'm currently driving a 2001 with 110K miles and know I'll keep it to at least 200K. My wife is driving a 96 with 153K miles and we'll keep it for a while longer. Could we afford new cars more frequently? Yes, but we consider it a waste of money to replace cars too frequently and would rather spend the money elsewhere. It's almost always cheaper to fix cars than replace them. Thinking of it in terms of how many car payments would be equivalent to the repair is a good way to put repair costs into perspective.
 
Question, are these actual repairs, or things needed for maintenance? You're at the mileage for a new timing belt which is generally about a grand, and generally speaking they'll find a few more things that need to be replaced at the time, valve cover gaskets being a biggie.

Or are these more nefarious types of repairs? Something to do with a hard to find leak, or some strange computer malfeasance?
 
Fix, unless you really want a new car. But an Acura should last well into the 200K range. If it were something like a dodge stratus, I'd say dump it.
 
I would like more specifics on the maintinence, but when you look at $400 a month......you will be even in May.

If you use the car for business you will break even sooner as you are writing off what $0.45 a mile this year? So your Mileage will "pay" for the repairs with 4000 business miles.

If a car is in good shape I drive the crap out of them. I always get upwards of 150K if no wrecks. You always have stuff like water pumps, and radiators eventually crap out or need repair but that's every car. Past that change the oil and fluids regularly and NEVER let them do those power "exchange" transmission fluid changes (they are evil and can ruin an older trannie).

I will say that at about 10 years I start thinking about replacing the car with a used one with lower miles and start the cycle over again.
 
One thing to keep in mind (as a counter point) is how frequently you need repair and how difficult is it to find secondary transportation, does it interrupt your work (and lose you money on that side), etc.

That being said. An Acura ought to get you 200k easy without frequent repairs but there are always exceptions.

And don't buy new. Let some other sucka take that depreciation hit.
 
Do you know an honest, able, mechanic who will actually fix your car for 1800? Depending on who you give the 1800 to will depend on if you are making the right choice. There are a ton of mechanics that 100-300$ you to death when you get your car to that kind of mileage.

If you have a reliable one then go for it. Otherwise trade it in and avoid the hassle.
 
What do you mean by a power exchange transmission fluid replacement? When my transmission fluid is due for service, I get a transmission flush from Kwik Kar or a similar place.
 
^^ there is an argument that it stirs up any metal particulate within the transmission without taking it out, and is therefore bad. A proper flush should use enough fluid and pressure to ensure that it is actually taken out of the tranny. Our shop did hundreds per month and we never had any issues with b-back destroyed trannys. Our biggest problem was $6/hr crack heads in the pit not securing drain plugs well enough. Luckily it was caught (usually with a pool of oil on the customer's drive) soon enough that hadn't destroyed any engines just yet. God thing too, the Toyota 5.7 costs $19k and pays about 40 hrs.
 
Thanks for all the comments. I'm going to fix it and keep driving. The car doesn't get driven that much and isn't driven very hard. gecko jr will probably take it back to UT in the spring.
 
You are barely at the half life on a Honda engine. So unless it's important for you to be seen in a new car fix it and invest the difference over a new one.
 
i bought my first car when i was 17...a 1993 Dodge Dakota Sport pickup truck from my grandfather...had about 140 k on it...this was in 2002...i drove it til it had about 175 k on it and got rid of it in 2005 for a 1993 Honda Civic that had about 179 k on it...i drove it until about 2 months ago when the engine blew...it had 212 k on it...im now in a 2002 mercury sable that has 114 k...i plan on driving this thing til it drops...or i win the lottery...
 
I have an '03 GMC base model Sierra that i bought while at UT and just paid that off this past summer. I love that truck and will drive it til the wheels fall off.
So i say absolutely repair, if you dont care about having a brand new fully loaded car.

Although its getting harder to fight the urge to get a new truck with truck prices falling so much as of late.
 
Again....thanks for the replies. Its not a vanity thing at all. I actually have 2 2000 TLs and freekin' love those cars. My question was when do you stop "investing" in a used car and start looking to replace...? Sounds to me like the consensus is to keep fixing....which I will.
 
Last time we replaced a vehicle was last year when the Explorer needed a transmission fix - that was right after putting money into new brakes on the front and knowing that we only had a few months left before the rear brakes needed to be done. It had gotten to the point that the repairs were costing as much as a car payment but the car payment was much more predictable. That was our point on deciding to trade in.
 
If you live in Austin, take it to accurate horn. He'll fix you up pronto, and with perfect results.

Otherwise, you're making a huge monetary mistake.
 
Accurate Autoworks
13724 IH-35 North, Suite A
512-670-1275

David has fixed my Honda a couple of times. He'll do you right.
 
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