Hello Mustachians, here's my dilemma:
My current commuter vehicle, a 2004 Mitsubishi Lancer with 130k miles, is due for some expensive maintenance and repairs, ~$1000 (timing belt replacement plus some other issues). My commute is 40 miles round trip, mostly on the highway, and the car currently works OK for this purpose.
Option A is to sell it now and buy a newer used car. I estimate the Lancer is currently worth about $1500-2000. We have been putting $100/month into our "next car replacement" savings account and the balance is currently $3500. That would leave us with a total new car budget of $5000-5500, since we don't want a car payment.
Option B is to repair it now, keep saving $100/month for a few more years, then sell it for ~$1000-1500 and buy a newer/more expensive/nicer used car for $7000-8000.
I'm not sure which would be cheaper in the long run, though I suspect it would be Option B. Other things to consider besides money are safety, reliability, and comfort.
Option A would get me a safer and more comfortable car right now, but it would have highish miles with more opportunity for abuse by the previous owner(s).
For Option B, I could get a car that would have lower miles than Option A, and be potentially more safe, reliable, and comfortable. However, it means I would be driving a car without traction control, stability control, and side and curtain airbags for 2-3 more years.
What do you think?