Author Topic: Get rid of troublesome car?  (Read 4496 times)

newelljack

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Get rid of troublesome car?
« on: September 12, 2016, 09:47:23 PM »
Last year I thought I was doing the mustachian thing and bought a used car... except it was on credit. I have since replaced the transmission and am underwater a little bit on the loan (owe $8,400 on the original 36mo $14,000. KBB/market value about $7,500.)

Once every few months the transmission won't shift and I get a shift solenoid error code but it clears easily and I'm back on the road in less than a minute. Is it worth it to stick it out with the car or bail and get another used car, preferably certified pre-owned? I'm not worried about my safety since the issue only happens starting from first gear and it won't happen in the middle of the freeway. I just don't want to keep throwing good money after bad but any purchase would have to be on credit since we have been throwing everything at student loans.

JLee

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Re: Get rid of troublesome car?
« Reply #1 on: September 12, 2016, 10:20:55 PM »
If you just had the transmission replaced, is it still under warranty?

CPO is not a guarantee that a car will be problem-free...a good friend bought a CPO car and this happened.  The transmission was replaced under warranty this month (another two weeks without the car; for approximately six out of the last 18 months, the car has been in the shop).

newelljack

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Re: Get rid of troublesome car?
« Reply #2 on: September 12, 2016, 10:28:53 PM »
If you just had the transmission replaced, is it still under warranty?

Warranty was 1 year 12,000mi. Just passed both of those in June. I bought it private party with 78k on it and had the tranny go out on our first trip. My wife was driving it in SoCal traffic so stress levels were high and I had it towed immediately to the best shop in the area. Little did I know GM had a special service on it, upping the warranty to 120k so it would have been fixed for free instead of $3k. Live and learn. GM did deny my reimbursement request. Now up to 103k miles, my plan was to keep it 'til 250+

JLee

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Re: Get rid of troublesome car?
« Reply #3 on: September 12, 2016, 10:33:07 PM »
If you just had the transmission replaced, is it still under warranty?

Warranty was 1 year 12,000mi. Just passed both of those in June. I bought it private party with 78k on it and had the tranny go out on our first trip. My wife was driving it in SoCal traffic so stress levels were high and I had it towed immediately to the best shop in the area. Little did I know GM had a special service on it, upping the warranty to 120k so it would have been fixed for free instead of $3k. Live and learn. GM did deny my reimbursement request. Now up to 103k miles, my plan was to keep it 'til 250+

If you have a 120k warranty through GM, I'd make them fix it this time.

lthenderson

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Re: Get rid of troublesome car?
« Reply #4 on: September 13, 2016, 09:15:50 AM »
You don't say the make or model of the car which would affect my answer to some degree. However, if the vehicle is generally rated high on the reliability index, I would definitely try to get whomever replaced your transmission to fix the problem which I assume wasn't a problem when you bought the vehicle. Even if they won't, it probably isn't a high dollar fix.

The key to saving money on buying used vehicles is to drive them until they don't go anymore. Trading them off at the first hint of trouble, especially on a used vehicle, is a fools game. You will never come out ahead on that one.

Spork

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Re: Get rid of troublesome car?
« Reply #5 on: September 13, 2016, 09:39:04 AM »

The lesson to be learned here:  If you have to get a loan to buy a car, then you're buying more car than you can afford.*  My rule is: You should be able to pay cash, buy liability insurance only, wreck the car and pay cash again.  If that only means you can afford a $500 car, then buy a $500 car.


*To everyone that is going to pop up and scream how it makes more sense to get a 0% loan and invest than to pay cash: I'm not talking to you, here, okay?

HipGnosis

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Re: Get rid of troublesome car?
« Reply #6 on: September 13, 2016, 10:06:40 AM »
You're only giving non-specific info so you're only going to get non-specific answers.

The only semi-specific answer I can give is that you need to stop putting all your money into the student loans because you NEED to either repair the car or buy a different car.
I say semi-specific because it only gives you a minute of trouble every few months... so far...

What make, model of car?
What is the interest rate on: car loan, student loans, other debt?

JLee

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Re: Get rid of troublesome car?
« Reply #7 on: September 13, 2016, 10:50:22 AM »

The lesson to be learned here:  If you have to get a loan to buy a car, then you're buying more car than you can afford.*  My rule is: You should be able to pay cash, buy liability insurance only, wreck the car and pay cash again.  If that only means you can afford a $500 car, then buy a $500 car.


*To everyone that is going to pop up and scream how it makes more sense to get a 0% loan and invest than to pay cash: I'm not talking to you, here, okay?

I get what you're trying to say, but a $500 car is (almost) never a $500 car. By the time you get it remotely road worthy you'll have much more in it. Sometimes it's better to buy something that is not falling apart, even if it is a bit more expensive.

Spork

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Re: Get rid of troublesome car?
« Reply #8 on: September 13, 2016, 11:21:21 AM »

The lesson to be learned here:  If you have to get a loan to buy a car, then you're buying more car than you can afford.*  My rule is: You should be able to pay cash, buy liability insurance only, wreck the car and pay cash again.  If that only means you can afford a $500 car, then buy a $500 car.


*To everyone that is going to pop up and scream how it makes more sense to get a 0% loan and invest than to pay cash: I'm not talking to you, here, okay?

I get what you're trying to say, but a $500 car is (almost) never a $500 car. By the time you get it remotely road worthy you'll have much more in it. Sometimes it's better to buy something that is not falling apart, even if it is a bit more expensive.

Right.  But buying a $500 car and making repair "payments" every 3rd month makes more sense to me than buying a $14k car and making direct payments every single month. 

The fact that you're forced to buy on credit already presumes there is a bit of a cash flow issue.  The $500 car beats the new one on cash flow.  And the $14k car needs repair as well...

And $500 was a hyperbolic number tossed out there.  In reality a $14k car probably has a grand or more down payment.  So buy a car for THAT amount of money.

newelljack

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Re: Get rid of troublesome car?
« Reply #9 on: September 13, 2016, 11:46:50 AM »
You're only giving non-specific info so you're only going to get non-specific answers.

The only semi-specific answer I can give is that you need to stop putting all your money into the student loans because you NEED to either repair the car or buy a different car.
I say semi-specific because it only gives you a minute of trouble every few months... so far...

What make, model of car?
What is the interest rate on: car loan, student loans, other debt?

Here is where you are all going to scream at me, and why I left it out to begin with, ha. It's a 2007 Saturn Outlook AWD. I KNOW! I am kicking myself every day because I had a 2003 Saab 9-3 that was totally free and clear and decided I just HAD to have something bigger to haul my three kids to the in-laws 350 miles away twice a year. In reality, I only have all three in the car 1% of my driving time and I HATE going to the ILs.

The student loans are at 3.5-6.5% with only $12k left to go. My wife and I both teach in California so our employers already match our automatic retirement contribution. I can contribute to a 403(b) (no match) and I have an Roth from before I started teaching (about 10k in there).

No other debt.

Current monthly payment on the La-Z-Boy is $405 (36mo 2.79%, 22 months left).

I've pretty much talked myself into getting rid of the gas guzzler, so what are other recommendations?

TrMama

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Re: Get rid of troublesome car?
« Reply #10 on: September 13, 2016, 11:47:55 AM »

The lesson to be learned here:  If you have to get a loan to buy a car, then you're buying more car than you can afford.*  My rule is: You should be able to pay cash, buy liability insurance only, wreck the car and pay cash again.  If that only means you can afford a $500 car, then buy a $500 car.


*To everyone that is going to pop up and scream how it makes more sense to get a 0% loan and invest than to pay cash: I'm not talking to you, here, okay?

I get what you're trying to say, but a $500 car is (almost) never a $500 car. By the time you get it remotely road worthy you'll have much more in it. Sometimes it's better to buy something that is not falling apart, even if it is a bit more expensive.

Exactly. If you can only afford a $500 car, but that car isn't going to be good enough to get the job done, then perhaps you need to find a transportation solution that doesn't involve buying a car at all.

TrMama

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Re: Get rid of troublesome car?
« Reply #11 on: September 13, 2016, 11:54:30 AM »
You're only giving non-specific info so you're only going to get non-specific answers.

The only semi-specific answer I can give is that you need to stop putting all your money into the student loans because you NEED to either repair the car or buy a different car.
I say semi-specific because it only gives you a minute of trouble every few months... so far...

What make, model of car?
What is the interest rate on: car loan, student loans, other debt?
I just HAD to have something bigger to haul my three kids to the in-laws 350 miles away twice a year . . . I HATE going to the ILs.

<snicker> Karma, man.

OK, now that you've negotiated the steep slope of that particular learning curve to self awareness I suggest you continue to drive this car as your penance. Stop hitting the student loans so hard and divert that cash into a little car replacement fund. Don't spend the money yet. Just let it pile up while you carefully research which car will make you happy and keep you away from the ILs. When the Saturn dies, replace it.

newelljack

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Re: Get rid of troublesome car?
« Reply #12 on: September 13, 2016, 01:36:00 PM »

[/quote]

Stop hitting the student loans so hard and divert that cash into a little car replacement fund.
[/quote]

Currently putting $1,000/mo towards loans. Split it 50/50 with the car fund?

TrMama

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Re: Get rid of troublesome car?
« Reply #13 on: September 13, 2016, 03:42:08 PM »


Stop hitting the student loans so hard and divert that cash into a little car replacement fund.
[/quote]

Currently putting $1,000/mo towards loans. Split it 50/50 with the car fund?
[/quote]


The lesson to be learned here:  If you have to get a loan to buy a car, then you're buying more car than you can afford.*  My rule is: You should be able to pay cash, buy liability insurance only, wreck the car and pay cash again.  If that only means you can afford a $500 car, then buy a $500 car.


*To everyone that is going to pop up and scream how it makes more sense to get a 0% loan and invest than to pay cash: I'm not talking to you, here, okay?

I get what you're trying to say, but a $500 car is (almost) never a $500 car. By the time you get it remotely road worthy you'll have much more in it. Sometimes it's better to buy something that is not falling apart, even if it is a bit more expensive.

Exactly. If you can only afford a $500 car, but that car isn't going to be good enough to get the job done, then perhaps you need to find a transportation solution that doesn't involve buying a car at all.

The answer is in the paragraphs above. If this car died tomorrow, how fucked would you be? Would the lack of car be a mild annoyance? Or would it prevent you from getting to work and therefore earning the income you need to feed yourself? Do you have enough saved to replace the car? Could you replace it with one that has more life left in it, thereby preventing this situation from recurring? That's the amount you should be saving every month.

FTR I'm also driving a car I bought spur of the moment. I don't like it and think its mechanicals are dodgy. However, it's paid for, runs fine for now and I have the cash saved to replace it in a heartbeat. I'm going to continue to drive it until it becomes too unreliable for me to tolerate.

If you're really worried about it breaking down on the side of the road, take it in for an inspection so you can get a better idea of whether that's a rational fear or not.

newelljack

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Re: Get rid of troublesome car?
« Reply #14 on: September 13, 2016, 05:03:13 PM »
Thanks everyone. Keeping car, starting replacement fund until I can pay cash for a better fit. Thread closed.

hoping2retire35

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Re: Get rid of troublesome car?
« Reply #15 on: September 14, 2016, 11:28:19 AM »


Stop hitting the student loans so hard and divert that cash into a little car replacement fund.

Currently putting $1,000/mo towards loans. Split it 50/50 with the car fund?
[/quote]


The lesson to be learned here:  If you have to get a loan to buy a car, then you're buying more car than you can afford.*  My rule is: You should be able to pay cash, buy liability insurance only, wreck the car and pay cash again.  If that only means you can afford a $500 car, then buy a $500 car.


*To everyone that is going to pop up and scream how it makes more sense to get a 0% loan and invest than to pay cash: I'm not talking to you, here, okay?

I get what you're trying to say, but a $500 car is (almost) never a $500 car. By the time you get it remotely road worthy you'll have much more in it. Sometimes it's better to buy something that is not falling apart, even if it is a bit more expensive.

Exactly. If you can only afford a $500 car, but that car isn't going to be good enough to get the job done, then perhaps you need to find a transportation solution that doesn't involve buying a car at all.

The answer is in the paragraphs above. If this car died tomorrow, how fucked would you be? Would the lack of car be a mild annoyance? Or would it prevent you from getting to work and therefore earning the income you need to feed yourself? Do you have enough saved to replace the car? Could you replace it with one that has more life left in it, thereby preventing this situation from recurring? That's the amount you should be saving every month.

FTR I'm also driving a car I bought spur of the moment. I don't like it and think its mechanicals are dodgy. However, it's paid for, runs fine for now and I have the cash saved to replace it in a heartbeat. I'm going to continue to drive it until it becomes too unreliable for me to tolerate.

If you're really worried about it breaking down on the side of the road, take it in for an inspection so you can get a better idea of whether that's a rational fear or not.
[/quote]
When going the used(beater/non-professional looking) car route while not FIRE'd you really got to have back up. Thats why have two or three(couples) of those super cheapos is the best route. Go to CL under cars and trucks put the filter for max price at $2000; this is where you live. If you can sell your car and you are sure you can handle the additional cost maybe, MAYBE, one of them can be up to $4000, possibly $5000. Get used to making small repairs, it saves time and money and your soul. youtube then replace/repair that transmission solenoid.