Don’t Buy An Old Beater Car (luxury car, electric windows, traction control)

[Steve Bagu]

My old VW is 50 yrs old. As a former mechanic am able to repair just about anything saving on Labor.

What ever I spend is a lot less then the 300-500 a month payments many make.

At a mkt one day an old man (younger then me) parked his expensive New car next to me and looked down on me.

I probably have more money in my custom TURBO engine then he had as a down pymt and he has to make those pymts every month for yrs while my car is paid for in full. Just under 200hp and I can keep beat just about any car on the road within reason. I am a former Pro Racer so drive legally on the road.

Anyway, in my younger yrs as a business owner (different profession) owned 2-3 Cads at one time that I would buy with 45-50k on the spedo for Cash. Every year would sell the oldest of my fleet for a newer yr. Only expense was the oil, tune ups, tires.

My credit today is in the 800 range so can afford to buy a Newer car then again question is WHY?

This past month I pulled my engine for some new piston rings....and oh yes I will be 85 first week in Aug

[Nlambert]

Let's look at the cost of maintaining that same Honda Civic that I used as an example above.

Honda Civic 4dr sedan EX

2016 - $21,875
2011 - $11,700 60k miles



So you buy the 2016 new and get a great 1.9% interest rate on a 5 year loan and get two free years of oil changes. You plan to keep the car through the 5 year loan and average 12k miles per year. So by the time you sell it, it will have around 60k miles on it.

Monthly payment is = $371.51. That is all you spend for two years / 24k miles.

At 25k miles you start paying for fluid changes (5k mile intervals). Let's say the oil change cost is $40 and you'll only pay for it 7 times. Total cost is $280.
At about 40k miles you'll need tires. Let's say they're around $600. You spend that $600.
At about 40-50k miles you need brakes. Let's say they cost around $300. You spend that $300.


Do the math. In 5 years and 60k miles you will have spent $23,470.60. Your car is only worth $11,700 when you decide to sell it. It has depreciated $10,175. 46% of what you paid for it.



Now, I buy the 2011 Civic with 60k miles on it at the same time. I get a used car loan for $11,700 at 3% interest for 3 years. My monthly payment is $334.75. I intend to drive it for 5 years also. At 12k miles per year, that is 120k miles.


I will change the oil 12 times. Total cost is $480.
I will need tires at about 80k miles. I'll sell it before I need the next set because I sprung for a higher mileage tire instead of what the manufacturer installs. Total cost is $800.
I will need brakes about the same time. Total cost is $300.
At 90k miles, I will need to change the timing belt and water pump as preventative maintenance. Total cost is $1,000.


In 5 years and 60k miles, I have spent $14,631. In 5 years, my car has depreciated $4,050 or 34%.

So within reason, it is a reasonable expectation that if one were to carefully choose said "beater" car, they could come out ahead. But it still boils down to knowing how to make it work for you. I can make a LOT of repairs in the $8,839.60 savings I see from buying the "beater" before the new car is worth it.

[headingtoDenver]

I have a sneaky feeling this post was only made to get his viewer count up on that video (which I did not click on).

[M3 Mitch]

Originally Posted by Yakscsd

Who cares what other people drive, or how they spend their money. What's the point of this thread?

The point of the thread appears to have turned out to be a roll call of real men who know how to fix their own car, and a second roll call of those who don't.

[Nlambert]

Originally Posted by M3 Mitch

The point of the thread appears to have turned out to be a roll call of real men who know how to fix their own car, and a second roll call of those who don't.

In reality you don't really even need to know how to fix your own car to still come out ahead. You just have to have enough common sense about you to stay on top of things.

[yellowsnow]

I learned about the wisdom of the beater car when I lived in Minnesota. Many people use and drive them every winter while parking their 'good' vehicle. The winters up there destroy cars. All the ice, snow, and road chemicals cause a lot of damage. Many of these folks bought their beaters from other states, like Arizona or California, where you could reasonably assume the cars hadn't done much winter driving.

Only bought 1 new car while I lived up there, a Hyundai Santa Fe. When it was 5 years old I wanted to get something else without the AWD I didn't need anymore. A dealer told me the vehicle really had low value because of the chemical corrosion and rust on the undercarriage. I should have driven a beater in the winter!

[ponytrekker]

I lease new and return.

To me, new safety technology is worth the price of a cell phone bill.

[redguard57]

I never understood the people who do accounting on their vehicles like buying stocks or doing taxes. I like cars, so I get the car that I want to drive.

I save up for it & pay cash, or at least a healthy down payment & finance a low amount for low interest. The advantage of older vehicles from that perspective is that I don't have to save for as long. I don't deny myself new vehicles though. They can be nice. There's something to be said for buying new & that vehicle being "yours" from mile 1.

[Rogarven]

I don't mind driving old cars that are paid for. My problem is when they become unreliable and crap out at the most inopportune time. Yes, some of us don't work on cars anymore. I used to change oil at home but now just go to my indi mechanic. I just want something that is going to get me to my destination safely and reliably.

[JrzDefector]

Depends on your lifestyle. I had a beater that was GREAT - until I broke up with my mechanic boyfriend. Then it was just an endless drain on my bank account with no one who liked to tinker around with cars in my life. Right now, making a good income and living a pretty low-key life, I like having a relatively new car that runs reliably. But it's like death by a thousand cuts when you have to take a car into the shop on a monthly or even weekly basis.