What is your general rule for when to replace a car?

[kittenwhiskers]

Just talking general rules here...
My father's rule: If the repairs cost more than the car is worth, it's time to replace the car.
Mustachians on this forum generally recommend buying a really old car (maybe about 10-20 years old, sometimes with ~100,000 miles) and hang on to it a long (but indeterminate) time after that.
What is your own personal rule for when it's time to replace it with something slightly newer?
Thank you for your input!

[EricL]

 Your father's advice is pretty much the same advice I'd give you. I'm not sure the board recommends as a whole buying the oldest junker you can get.  Buy used, yes.  But also buy a dependable model from a dependable manufacturer in good condition.  A model just a couple years old will still be significantly cheaper and have a lot more life ahead of it.  Then drive it 'til it dies a natural death.

[Cole]

I'm pretty handy but how I have approached this so far: Buy something old but when it was made it was the most dependable model. Keep it running smoothly until something happens like the block cracks or the transmission goes and then sell it off.

[JonasNC]

I've always used a slightly more conservative method (which may be why I'm driving such an old car right now).  I will do the repair if I think the repair will make the car last more months than would make up a car payment for a newer car.  For example, my car is currently worth probably $2,500.  I would do a $1,000 repair if I thought it would have the car reliable and driving for at least 4 more months (figure a $300/month payment on a newer car).  Does this make me too conservative on a car?  I do find it hard to ever justify getting a newer car using this methodology.  I'm probably just going to get a new car once my current one becomes an issue on day to day reliability.  I'd love any replies, not sure if I'm being way too cheap...

[sol]

Never.

I've sold cars and gone carless three different times in my life.  But I've never sold a car just to get different car.

Maybe if your needs change, like you were driving a civic and suddenly inherited four kids?

The whole idea of "replacement" just seems foreign to me.  Like when should you replace your house?  You don't, you keep it forever unless you have some external need to exchange it.

[JLee]

I change cars when I feel like it. Sometimes I go newer, sometimes I go older.

[Jellyfish]

I replaced my last car when I felt its lack of reliability was becoming a safety issue for me.  I'm a single mom, and the last 2 times it broke down were on a busy expressway going 65 and then in a not so good area of town at night with my son in the backseat.  It may have still made $$ sense to fix and keep longer, but I felt better upgrading for something more reliable (I should note that it had historically been a very reliable car but after 11 years just had more issues than I felt comfortable managing on my own).

[Jakejake]

We've always bought new cars, and the rule is to keep them at least 10 years, longer if they are still running. I understand the new car depreciation thing, but part of me can't get past the belief that people who are leasing or planning to sell their cars won't bother to maintain them right, because it's not their problem.

My current car is a 2003. The car before that, I bought new and drove it until the passenger door was held on with bungee cords - it was attached to the car, but sometimes it liked to swing open on it's own when we were driving when it wasn't tied down. And you had to drive with the windows down even in winter because some engine fumes of death were coming into the passenger compartment.

[Urchina]

I replaced my 30-year old beloved Volvo when my mechanic told me it had failed smog so badly that the state would pay me $1000 to take it to an auto recycler. It would have cost far more than that to fix it and as a 2-door model no longer met the needs of our family, lacking things like airbags and a functioning heater.

We took it in and then bought a new Odyssey. 10 years and 180,000 miles later and I figure we're not even halfway through its lifespan. I love that thing. We'll replace it when the state pays us money to take it off the road or it gets totaled. Since  both DH and I have lily-white driving records and our kids are at least 6 years away from driving age, I think the state may have a chance at making it 2 for 2.

[BlueMR2]

I don't know...  I've never reached that point.  I've purchased 2 cars in my lifetime and I still own both.  I've put $5000 into a car "worth" $2500 before because I know the car is otherwise sound.  Spending $10k I may still end up with somebody else's problem.

At some point it'll be too ridiculously expensive to repair I suppose.  Parts seem to be drying up for my '95 now, but then again, my '91 was like that a few years ago and now the aftermarket has exploded with inexpensive replacement parts...

[LeRainDrop]

I don't really have a rule of thumb other than to always pay cash.  I guess I sort of have in mind to keep a car around 10 years or so, but I'm not beholden to that.  My car history:

(1)  Buy a used 1999 Mercury Cougar in 2001.  Take very good care of it.  Start to get expensive repairs through 2010 and 2011 -- a couple times, the bill was like $1600 or $1200 ish.  A number of times the car refuses to start, those repairs are done, different problem causing refusal to start.  It lost power steering, etc. as I was exiting the highway to meet a partner and a client for an important business trip, and I was a mile short of where I was supposed to meet them.  That is the straw that broke the camel's back because I really let them down -- had to deal with my car instead of joining their carpool to our meeting a few hours away.

(2)  Buy a new 2012 Mazda6 in December 2011.  Love it, take very good care of it, absolutely nothing to fix since then -- just standard oil changes.  I can't imagine not having this car for at least 5 more years.  I guess one can never know, but that seems like the minimum time I would keep it.

OP, I did see your listing of repair costs in your other thread.  To me, those are pretty outrageous.  If I were you, I would be buying a replacement -- a couple years old, used car that is known for reliability, like a Honda or Toyota or something.

[HPstache]

The problem is that if you wait until it requires a repair which exceeds the value of the car, then you have waited for a bad time to sell it.  The trick is to sell it while it is still running strong to get the best value out of it.  My wife and I have a "new to us" car replacement fund which we put $250/mo into so that we both get a ~10,000 upgrade to whatever we can sell our current vehicle for every 6 years (a new vehicle in the family every 3 years alternating).  This way we let time, not a mechanical issue, determine when it's time for new and we can buy in cash on that schedule.

[Dicey]

When I finally get tired of my husband's nagging. He does all the repairs and he wants me to ditch my van before the repairs get spendier and more difficult. It uses a LOT of oil, so he may have a point. I'd rather just keep it, but I'm not the one spending time with a wrench under the hood.

[Rural]

When it dies and the cost to repair exceeds replacement or when we don't think a repair will keep it running for any respectable length of time. Resale isn't an issue as we tend to be the last stop for motor vehicles. We keep an $800 backup so we don't have to rent during repairs or buy a replacement in a hurry.


Now we do start looking when we start to get the sense that the day may be coming soon. We're looking around now, but then we have been for months. If an incredible deal comes along, we'll pounce.

[ChaseJuggler]

I shoot for about $1000 per year. So my $8000 car needs to last 8  years, or sell for $2000 after 6 years or whatever. Has to get at least 50 mpg though.

The moment something important breaks that isn't supposed to, I look for another car.

Sent from my XT1031 using Tapatalk

[Drifterrider]

Just talking general rules here...
My father's rule: If the repairs cost more than the car is worth, it's time to replace the car.
Mustachians on this forum generally recommend buying a really old car (maybe about 10-20 years old, sometimes with ~100,000 miles) and hang on to it a long (but indeterminate) time after that.
What is your own personal rule for when it's time to replace it with something slightly newer?
Thank you for your input!

My rule is when it is no longer reliable to get you home. 

[Fishindude]

There are no "rules" for this.  The important thing is to not let yourself get "car poor" strapped to hefty payments, automobiles you can't afford, etc.

[thd7t]

I disagree with the "repair greater than the value of the car rule", because I'll take a repair that is less expensive than replacing the car.

[Le Barbu]

I disagree with the "repair greater than the value of the car rule", because I'll take a repair that is less expensive than replacing the car.

How do you decide the price of the repair?

[Drifterrider]

I disagree with the "repair greater than the value of the car rule", because I'll take a repair that is less expensive than replacing the car.

How do you decide the price of the repair?

You didn't ask me but I'll weigh in with my opinion:  It depends on what is being repaired.  If it is a major system (engine, transmission, brakes) I balance the cost of the repair against the value of the car and the cost of a replacement.  I have a 12 y/o truck.  A replacement engine is about $4,000.  The value of my truck is about the same.  If the engine were to go I would probably get something else (and try to sell my truck for something).

Remember, the transmission is also 12 years old (as is everything else).

Of course, I'd try to get something else for under $4,000 :)

[Le Barbu]

Since we drive like Mustachians, we dont need to repair cars anymore. They wear/break no more. I change oil once a year for 25$.

We drive 4k miles/car/year and 50% of this is comuting and 25% is for kids playing hockey. I think I will have to replace my tires when they get cracked, not worn...

Next car replacement? When the cars will be +20 years old and rusty. We live in the salt-belt (Canada).

My next car could be my last one!

[Le Barbu]

I disagree with the "repair greater than the value of the car rule", because I'll take a repair that is less expensive than replacing the car.

How do you decide the price of the repair?

You didn't ask me but I'll weigh in with my opinion:  It depends on what is being repaired.  If it is a major system (engine, transmission, brakes) I balance the cost of the repair against the value of the car and the cost of a replacement.  I have a 12 y/o truck.  A replacement engine is about $4,000.  The value of my truck is about the same.  If the engine were to go I would probably get something else (and try to sell my truck for something).

Remember, the transmission is also 12 years old (as is everything else).

Of course, I'd try to get something else for under $4,000 :)

I agree with your claculation. But if the engine IS done (dead) and the replacement is 4k$, you got to decide if you replace it or not. You cannot decide the replacement will cost less than 4k$?!?! Sometime, you can choose for a cheaper repair (to make it work again) when the value of the car is low than an expensive one when the value is still good. Maybe that is what thd7t talk about?

[Scandium]

The whole idea of "replacement" just seems foreign to me.  Like when should you replace your house?  You don't, you keep it forever unless you have some external need to exchange it.

Well, my house at least has fewer parts that move at thousands of rotations per minute than my car does... Slightly different types of wear

[Le Barbu]

The whole idea of "replacement" just seems foreign to me.  Like when should you replace your house?  You don't, you keep it forever unless you have some external need to exchange it.

Well, my house at least has fewer parts that move at thousands of rotations per minute than my car does... Slightly different types of wear

and your house value is also related to the location, this is why you see people paying 500k$ for a slum in Toronto these days

[thd7t]

I disagree with the "repair greater than the value of the car rule", because I'll take a repair that is less expensive than replacing the car.

How do you decide the price of the repair?

You didn't ask me but I'll weigh in with my opinion:  It depends on what is being repaired.  If it is a major system (engine, transmission, brakes) I balance the cost of the repair against the value of the car and the cost of a replacement.  I have a 12 y/o truck.  A replacement engine is about $4,000.  The value of my truck is about the same.  If the engine were to go I would probably get something else (and try to sell my truck for something).

Remember, the transmission is also 12 years old (as is everything else).

Of course, I'd try to get something else for under $4,000 :)

I agree with your claculation. But if the engine IS done (dead) and the replacement is 4k$, you got to decide if you replace it or not. You cannot decide the replacement will cost less than 4k$?!?! Sometime, you can choose for a cheaper repair (to make it work again) when the value of the car is low than an expensive one when the value is still good. Maybe that is what thd7t talk about?

I have a reliable mechanic who can price work well and a car that was valued at just over $1600 in 2005.  I haven't really had a reason to find out the value of the car since then, but around seven years ago, had about $1600 of work done, because the car is very inexpensive to operate (I've put under 3000 miles on it in the last three years) and because my mechanic believed that the car was sound and would continue to run well.  That said, I've come to the point where a structural issue is going to force me to replace it, soon.

[MayDay]

We are currently driving an 03 and an 04, so not new by any stretch. 

After taking the '03 Civic on a short (2.5 hours each way) road trip last weekend with 4 people in it, two of whom were very noisy, we have come to the conclusion that it is fucking miserable.  If we didn't also have the '04 Sienna which is super fancy and comfortable, I told H we would be trading that thing in ASAP.

Being in the tiny car for commuting, errands, etc is fine.  Great fuel economy, never breaks, etc.  But it is tiny and has a lot of road noise, so a 2.5 hour road trip was making me go into sensory overload about 30 minutes in.  Yes we could suck it up and deal, but its not worth my sanity.  We aren't taking it the 12 hour drive to my parents.  We'll take the Van of Awesomeness.

So apparently my bar for car replacement is "when the current car becomes literally headache inducing".  With a little bit of "no side curtain airbags or electronic stability control" thrown in for good measure, if you use the thing to hurl yourself down a highway at 75 mph.

[solon]

A long time ago my plan was to drive my cars until the wheels fall off. Until then, I would just keep fixing the small stuff, because small repairs are cheaper than payments.

The problem with this strategy is: if you keep making the small repairs, the car never wears out! I own a 99 and an 03 now. I bought both when they were 1-2 years old. I can't wait for them to die so I can get something newer, but I also LOVE all the money I've saved by not making payments.

[Spork]

I think "repair is >= value of car" is a good place to start... but there can also be other mitigating factors.

I was commuting in a big ass SUV and getting 12mpg.  I did a little number crunching and ... The difference in the cost of gas over 2 years would buy me a reliable 30+mpg craigslist special with 10 years or more of life left in it.    That also seemed like a reasonable time to replace a car.   I suspect there are a few other factors where it would make sense as well.

"Small repairs are cheaper than car payments" is a bad place to start though.  If you're making car payments, it is probable that you bought more car than you can afford.  (Sure, you may have worked a deal on a used 2006 Yaris at 0% interest.  In that case, you may ignore what I just said.)