Math: bought new car, sell old one?

[much ado]

So, my wife and I have 3 vehicles:

1996 farm truck, 190000 miles. Terrible gas mileage, just use around the farm and hauling stuff, or when we need 4wd.
1995 Toyota Tercel, 358000 miles, given to me by my brother. My daily driver. Still runs, but anything could go at any time
2006 Toyota Corolla - our "new car", 255000 miles. DW's daily driver. No issues currently.

I do all the maintenance and can handle most repairs. We're looking at buying another new (to us) small car (2015 Honda Fit, $7500). I'm trying to decide whether to sell (or scrap) the Tercel, or keep driving it until it needs a major (costly) repair. I'm trying to come up with a good mathematical way to analyze the choice.

Option 1: Keep the Tercel as a daily driver until it dies. New car will be a garage queen, only driven occasionally.
Option 2: Sell the Tercel and new car becomes a daily driver (10000 mi/yr)

Costs to keep the tercel (in addition to the Fit):
insurance: $164/yr
gas mileage premium: $70/yr (10000 mi per year, Fit gets 40 mpg, Tercel gets 35, $2/gal gas)
sale price premium: $300 (estimate I could sell the Tercel for $500 now, or scrap it for $200 if it's not running)
ridiculousness of 2 people owning 4 cars: pretty ridiculous. We have a 2 car garage, so the truck and the Tercel will be outside.

Is there a good way to analyze this? Any other costs of keeping the Tercel that I'm missing? I thought about adding the above costs and subtracting the slower depreciation of the new car (putting fewer miles on it), but that seems like a lot of work.

Honestly, the new car is cheap enough and the Tercel is old enough that it really doesn't matter, but what's the fun in life if we can't overanalyze every decision?

[researcher1]

Is there a good way to analyze this? Any other costs of keeping the Tercel that I'm missing? I thought about adding the above costs and subtracting the slower depreciation of the new car (putting fewer miles on it), but that seems like a lot of work.

Honestly, the new car is cheap enough and the Tercel is old enough that it really doesn't matter, but what's the fun in life if we can't overanalyze every decision?

The only information needed to make a decision... 4 beater vehicles for 2 people.

Ditch one or both of the 90's era vehicles.
Having them rotting away and cluttering up your driveway is reason enough.
Not to mention having to keep up with maintenance/repairs, renewing the registration/tags, paying for insurance, ect.

Simplify and streamline your life. 
What is the point of owning all of these cars if they don't get regularly driven?

[Samuel]

Sounds like you might be in it for the hyper frugal satisfaction of driving the Tercel fully into the ground, which I can certainly appreciate. I get the appeal of trying to nurse it along to the 400,000 mile mark and beyond.

For a daily driver, though, I place a high priority on having a reasonable expectation that it can get me where I'm going every time I turn the key. I also dislike clutter, which the Tercel would become if the Fit joins the family.

Personally I would go for Option 2 but the money angle of Option 1 is really pretty minimal and everyone needs a hobby...

[blingwrx]

Do you both drive separately that often? Is it possible to just live with the farm truck and the fit? I really don't see the point of 4 cars, it's taking up space and costing you extra in insurance. The older cars will cost more for maintenance in the future.

If you both drive separately everyday then just junk the tercel. Otherwise if you both don't drive separately that often get rid of the Corolla and the tercel. Use the Fit as the main car and the farm truck as a backup.

Tercel might not be worth anything with the high mileage so maybe you could donate it for a tax deduction or junk it and get a little bit back for the value of the scrap metal or parts.

[Sibley]

At most - 2 daily drivers + farm truck.

You have to pay registration, insurance, etc on your vehicles. Plus maintenance, and sitting around isn't good for cars.

[alsoknownasDean]

The only information needed to make a decision... 4 beater vehicles for 2 people.

Three. Nothing beater about a 2015 Fit. Even the Corolla is borderline but the high miles imbue it with beater status.

With the Tercel, would donating it be an option?

The newer two vehicles would fare much better in a crash, so I'd be inclined to get rid of the Tercel. If you're planning to keep the Tercel...why buy the Fit?

[much ado]

Thanks for the thoughts.  The reason for buying the new car is to have a newer, more reliable car for long trips.

We usually carpool, but with Covid, daycare, and job changes, we've been driving separately everyday. We should be able to start carpooling again soon. The cost to keep the Corolla around is pretty minimal, and it's very handy for the times we do need to drive separate, or when I'm working on the other cars. But the Tercel should probably go.

I think my main hangup is just the "waste" of throwing the Tercel away when it still meets my needs. My dad suggested, and this is probably the best idea, to find someone who needs a car and give them the Tercel. That way instead of a waste, it's just being generous.

[researcher1]

I think my main hangup is just the "waste" of throwing the Tercel away when it still meets my needs.

It is more wasteful to have FOUR cars rotting away in your driveway, when you only need two at most.

[StashingAway]

My dad suggested, and this is probably the best idea, to find someone who needs a car and give them the Tercel. That way instead of a waste, it's just being generous.

I'm sure the person that you donate it to will be very appreciative of you keeping it maintained as well. And with a car that old you are not burdening them with high insurance or registration costs either.

[trollwithamustache]

Third path...

buy the car, clean up the Trecel and post it for sale for a good price and see what happens. 

seriously, cars sell above blue book (average) all the time... if you want to get rid of it, you discount it. but it sounds like you have the space to keep it and the mechanical wherewithal to deal with whatever minor crap comes up.

[Rosy]

Thanks for the thoughts.  The reason for buying the new car is to have a newer, more reliable car for long trips.

We usually carpool, but with Covid, daycare, and job changes, we've been driving separately everyday. We should be able to start carpooling again soon. The cost to keep the Corolla around is pretty minimal, and it's very handy for the times we do need to drive separate, or when I'm working on the other cars. But the Tercel should probably go.

I think my main hangup is just the "waste" of throwing the Tercel away when it still meets my needs. My dad suggested, and this is probably the best idea, to find someone who needs a car and give them the Tercel. That way instead of a waste, it's just being generous.

I think your Dad is right - give the Tercel to someone who needs a car.
You need the truck for the farm and from what you said, with Covid, daycare and job changes two cars are necessary. Covid isn't over yet, car pooling may cease to be an option and if you need to work on one of the cars you still have a way to work.

My DDH was a mechanic so I know that Tercel might make it to 450,000 which would be cool. But, at some point reliability and safety are more important, not to mention having a comfortable car for long trips.