Hi All,
I'm struggling to figure out when to bite the bullet and replace an older car.
I have a 2006 Honda Civic Coupe - just under 200k miles - which is starting to cost me a few thousand (2,500-ish dollars) a year to repair vs. getting a reasonable used car like a newer Honda Fit for something like $13,000. For reference, I just found a 2016 Honda Fit with 28k on it for a little more than 13,000, which seems like a great deal.
The amount I'm spending just in repairs per year (ignoring insurance, routine maintenance, gas) is now about twice or more than the car's blue book value (Blue Book quote for the old car is roughly $1,000-$1,300).
I've always heard the adage that if you're spending more on repairs to the car than the car is worth, its time to replace the car, which makes sense when looking at the car as an asset.
But to me, it seems smarter (and still potentially cheaper) to spend the money to repair the car, drive it another year (hopefully), and invest the money saved by not replacing the car that year. Or is it smarter to get the used car and hope for a low monthly payment on it (less than $210 per month, since my general repair cost averaged out over the year ends up being roughly $210)?
Is this thinking sound?
Some additional considerations: I currently have a very short and easy car commute (8 miles round trip) and, when the weather is good, I tend bike to work a few times a week, so my car use isn't super high, with the exception of a few longer distance trips per month.
Any ideas for a non-car savvy, fledgling Mustachian is greatly appreciated!