What would you do: Car Edition
Ken and I are trying to decide what to do about our car, which had a massive heart attack of sorts over the weekend. Here's Ken's email to me. What would you do? Any advice is very much appreciated.
So here's the deal: The connecting rod was broken in several pieces and damaged, obviously, the piston in question but apparently other pistons have been damaged in the process when it broke. Basically it would need an engine overhaul which is the approx. $5000+.
In thinking about this, I am slightly torn as to whether this repair is worth it or not.
1. On the one hand, we would be looking at the cost of a new car (or used) which in either case will be considerably more than this $5000+ that we're talking about. Considering the monthly payment, we may well be looking at about a year's (maybe less) worth of payments. If we keep the car for longer than a year, then we've saved ourselves money from there out until we decide to sell the car.
2. On the other hand, we are looking at an up front expense that, when compared to the potential book value of the car, may not seem financially tenable. If the car were worth $30000, then maybe it would be, but given the $4615-11050 (assuming the low end), we may well be spending equal to or more than the value of the car. This is obviously a strike against doing the repairs.
If we were to consider to NOT do the repairs (#2 above), I already have an offer for the car as-is of $1100. This tells me that the car is worth at least $6100 and probably more considering that the person who buys it would want to make a tidy profit on it. It may well be worth about $8000+
Considering my distaste for years of monthly payments on a vehicle that will only depreciate in value and my anticipation of increased expenses with our potential little one, I am leaning somewhat toward actually doing the repairs and holding the car for as long as we can.
Anyone have any thoughts on the matter. I would certainly appreciate anyone's comments on the above or other options that I have not mentioned.
Labels: family
posted by Lisa @ 3:09 PM
6 Comments:
Heh. Driving cars until they literally fall apart is deeply encoded in my family's DNA. My dad had a '72 Chevette until 1989. I'm still driving the same vehicle I was driving when I started graduate school (in '99), my second ever (the previous one being purchased by my dad in 1983).
That said, I've never faced a $5000 repair (or anything close to it), and I have a hard time wrapping my brain around it.
I think if I lived and worked where you did, my goal would be to spend as little as possible on a car and use it as little as possible (from what I recall you have been doing rather well on the latter.) At 100K miles, you *should* have a lot of life left on that thing (as in at least another 100K).
I'd *probably* go for the repair, but I'd be really unhappy about it for a long, long time. Unless I thought I could get a used vehicle that would meet my needs and last ~100K miles for $5000 or so...clearly only you can determine whether this is the case or not.
Good luck!
There's a kid on the way. Buy a minivan. Our Honda Odyssey is one of the coolest (okay, maybe not exactly the right word) cars I have ever had. Love that thing.
Ouch - doesn't sound like a good choice either way. Your 4runner should obviate the need for a minivan, so no real need to look for an Odyssey. Besides, you are only having one kid so far, not a brood like Alaskaboy.
I'm assuming the $5000 quote is coming from the dealer? If so, then find an good independent mechanic and get a quote from them. Chances are, the price could go down 20%. I'm not sure how much an engine replacement would be, but that should be ballpark.
The danger with trying to sell your car now and buying a new one is that few people are looking to buy right now. Then you might be looking at spending $8000 on a newer used car with a history that you might not be fully comfortable with.
Get a second opinion on the costs, look at your needs again, look at finances, and then decide in a week or two.
"The danger with trying to sell your car now and buying a new one is that few people are looking to buy right now."
Arthur makes a good point here...the flipside of which is that you could probably get a really good deal on a largish, slightly used SUV or similar gas guzzler from someone looking to unload such a thing (especially if they live out the boonies and commute to Portland everyday.) If you aren't needing to drive long distances every day, what do you really care about gas mileage?
Just a thought.
The 5K estimate is from a local, independent mechanic who we have been going to for years and trust. He's the kind of guy who calls you back if he thinks of a different option that may be cheaper (he did in this case, but sadly, it didn't work out due to the damage caused by the connection rod.)
It's true we don't drive often (we're both bike commuters), but when we drive, it's often long distances for trips. It might not be necessary for us to get a more fuel-efficient car, but it seems worthwhile to do our part (especially if we're in the market for a new/used one).
I'm not ready for a minivan. Definitely want to stick with a 4WD SUV type vehicle. Between dog and baby, we'll definitely use the space. We used the space just with the dog and hauling things around.
I miss my car.
Aww, that's sad Lisa. Although I must admit I can't wait until our car dies and we can get a Subaru Outback like all the other cool 30 something kids in Oregon. You should get an Outback too. Put a roof rack on that thing and there's plenty of room for dog and baby. Plus you'd look really cool. Way cooler than Rob in his minivan (just kidding Rob, I'm sure you are stylin' in your minivan :)
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