Buying a new car or not.

fuzzybuddy

fuzzybuddy

SF VIP
Location
The Sticks, Northeast PA.
I'm 70. Got a lot of health issues. I have a 7 year old Hyundai Elantra with 23,000 miles on it. Runs good. I can afford to get a new car-probably the same low price sedan type of car. I'm not sure if I should. The sales tax (6%) would be good for my USA/state taxes. For every buy reason, I have good don't buy reason. Ahh!!
 

Well----I am going to be 82 next month and I am still driving a great looking 2002 Toyota Camry XLE with only 89,000 miles. I figure I will croak still owning this car.

I can afford to buy a new car too, but why?
 
You want a change is a good enough buy reason for me Fuzzy. :cool: If you were strapped for cash, then I would say if your car ran good and was reliable to just keep it until it starts giving you trouble. Our truck is a '92 Dodge Ram Cummins Diesel, the other car we use almost everyday is a '96 Jeep Cherokee. Our newest car is used infrequently and kept in the garage, a '07 Dodge Nitro.
 
The newer the car, the more it costs for insurance and property tax. (Some states do not have property tax on cars. Ours does.) New cars depreciate significantly as you drive them off the lot. So, if your health deteriorates quickly to a point where you cannot drive, you would never get back what you paid for the new car. We haven't purchased a new vehicle for decades. I drive my trucks to 150,000 and then find one with 10,000 to 12,000 on them. They are just like new, but someone else has taken the depreciation hit.

I'm not a fan of purchasing new cars. It's IMHO, tossing money down a rat hole. A 7 year old vehicle with only 23,000 miles should still be reliable. If you worry about the reliability issue there are a couple of options. You could probably buy an extended warranty at your local Hyundai dealer. I'm not a big fan of extended warranties, but you would spend far less than on a new vehicle. Just make sure you purchase such a warranty from the dealer and not from some scam organization on the internet or that send you advertisements in the mail. The other option is to keep a AAA account active. AAA will give you some towing coverage and other protections.
 
You asked, so here's my take:

Go to Edmunds.com and see what your car is worth. Be honest when you fill in the blanks. Trading in or selling a car that only has 23,000 miles? Cripes, that's practically new even if it is seven calendar years old. Will you have car payments? Will you have car payments for more than three years? And what if your health takes a turn for the worse and you can no longer support payments?

(I drive a 12-year-old, mechanically sound Subaru Forester with 136,000 miles. Wouldn't think of buying another car, especially not a new one and not even a new-to-me one. I'd rather keep my money for me.)

Remember that cars are NOT investments (unless you're buying a classic collector's car and sometimes not even then). Investments APpreciate. Cars don't appreciate. A new car depreciates by about one third the instant you take possession and drive it off the dealer's lot.

Don't forget how recently you were almost in panic mode over finding a job, and let that be your guide. If you will need to finance a car purchase, whatever you estimate a car payment would be? Save it instead. Superglue it into a savings account and call it your emergency fund. Emergency funds should be a minimum of six months' living expenses in the event your income goes away.

Actually, do whatever you really want to do:)
 
I don't know what the reliability rating is on your car but if I had a vehicle that ran good and only had a mere 23,000 miles on it I'd keep it.
 
I've had an Altima for several years now. Even bought used it drives itself even now. Twenty bucks almost fills it and great mileage. I like compact cars that are easy to park but just big enough passenger side for Callie to curl up on.
 
Don't buy it. Instead use the extra blow off money and take a trip to the ocean, eat out more, invest in a new hobby, cross off a bucket item list (unless it's to buy a new car). If however you must... consider leasing. Elantras are extremely affordable. A grand down and $180 a month can get you in a newer more reliable machine. In 3 years turn it in and get another. But above all, have fun.
 
fuzzybuddy, I had a new Hyundai Elantra many years ago. I loved it!

It's nice to indulge yourself sometimes. However, my first response is that you might consider waiting until your "buy" voice is overwhelming!
 

You must log in or register to reply here.

Back
Top