Fix old car or get a new one

728 Views 16 Replies 12 Participants Last post by Masel, May 13, 2009

Masel

Discussion Starter · Apr 24, 2009

Six weeks ago I was rear ended in my 10 year old mini van. It is still drivable but the back hatch is sealed shut. We were already talking about replacing it and this seemed like a good time. Now however, my DH is concerned about his job. He's a chemical engineer and isn't sure if there are any more projects after his current one. The project has been extended another month and could go longer but nothing is written in stone. There have been furloughs and layoffs at his office but the company has expressed an interest in not losing all the talented people they hired last year so that they are ready when business picks up.

I work full time as well but I make half of what he does. My job seems more secure but I am also pregnant and will not get paid for most of my maternity leave in the fall.

So we do we get the old van fixed. Insurance will cover most of the repair. We do risk repairs down the line with this thing. We'd likely buy a used van just a couple years old or possibly a new vehicle from one of the companies offering job loss buy back programs. (Then we'd have to buy a junker which we did once. Worst car ever. (My area has crappy mass transit.))

Our finances are currently in balance. Our only debt is our house. We had a few years of struggling and are used to not living extravagantly but also don't have much savings. We did get a good tax refund which would make a nice down payment on a car. Or should we save that in case DH is laid off again. Bahhhh. This is driving me nuts.

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1 - 17 of 17 Posts

marimara

· #2 · Apr 24, 2009

I wouldn't take on another bill if it looks like your dh might lose his income. If you can make some money off the sale of your van and buy another car for cash then it might be worth it.

notneb

· #3 · Apr 24, 2009

I would repair the old car unless you can buy a newer vehicle with cash and still have several months worth of savings in case DH gets laid off. With the uncertainty about DH's job, this is not the time to take on a new monthy obligation.

p1gg1e

· #4 · Apr 24, 2009

Fix it.

If it was an issue like a new engine or something Id have to think about it more. I cosmetic issue , just fix it. Start a car replacement / fixing fund ( like a fake car payment ) and then when the time is right buy another car with cash.

bobandjess99

· #5 · Apr 25, 2009

i will admit that I see this as not only the basic issue at hand, but also as a greater health and safety issue. (I'm a car seat tehc,lol) A 10 year old minivan is likely to be a deathtrap, even without accident damage...minivans of that era have awful crash test ratings, it probably has no more than frontal airbags, no side protection, possibly not even headrests in the rear.

Just like I will not pare my budget down to the point where we are just eating Ramen daily, I won't let my kids ride around in an unsafe vehicle....it's not healthy/safe and if I were forced into a position where it had to happen for a while, I would definitely put a plan of action into place to get out of that situation. But that's just me.
One option I can think of is to take the tax refund and buy a cheaper, reliable used car, instead of using it as a down payment on a newer car, if you feel you need the new car.
that way you have something nicer,newer,safer, but are not taking on any payments.

I don't know if you need the seating capacity of a van, but tehre are some good, reliable used vehicles you could purchase outright with a "good tax refund". Depending on what that means to you, lol. I know we considered that very route, and there were plentiful newer , safer minivans in the 5-7K range, which was about our tax refund.

But..being cautious and keeping what you have might easily be the better choice, at least until you know more..like if dh get s a job/contract for a guaranteed year or something,you might feel more confident about a payment, etc. It's tough.

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emmasclogs

· #6 · Apr 25, 2009

I would fix it. My car is 11 years old and I don't expect it to die anytime soon. And I don't think it is a "deathtrap" either. My car (an SUV) does have headrests in all 5 seats.

I have looked for minivans in the $6000-$7000 range and I can't find much that isn't 9-11 years old. Maybe because I am wanting a Honda/Toyota?

vm9799

· #7 · Apr 25, 2009

i guess i'm going to be the voice of dissent here. as much time as i spend in my vehicle, and as often as my children are in there with me, i refuse to drive around in something unsafe or unreliable. we buy reliable, good quality vehicles that will last a very long time......i drive a newer honda odyssey and dh drives an older honda accord.

but this is just ME.

ETA: okay, i somehow managed to completely skip over the part about your uncertainty about your dh's job. how on EARTH i missed that i have no idea! duh! in that case i don't think i'd take on a payment unless you can really afford to. i would still replace the vehicle though......maybe find something else for cash?

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2cutiekitties

· #8 · Apr 25, 2009

I am on the replace it boat. BUT I would NOT get a car with payments. I would find the most money I could and buy outright.

I bet with the economy a lot of great cars are being sold for good deals

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emmasclogs

· #9 · Apr 25, 2009

I guess I am missing something. Why is the car unsafe or unreliable? Because it was in an accident?

2cutiekitties

· #10 · Apr 25, 2009

I guess we need to know exactly how damaged the van is ... has the frame been compromised?

How much is insurance giving you?

Why were you thinking of replacing it before the accident.

SoCaliMommy

· #11 · Apr 26, 2009

I'd get a newer used or new car if you could afford it along with your other bills if you dh was to get laid off.

USAmma

· #12 · Apr 26, 2009

I would fix it. We have two 10-year-old cars. They occasionaly need work, but we have decided that until the cost of work is more than the cost of a year's worth of payments we are going to drive these cars as long as possible. Especially with job uncertainty you don't want that added stress right now. If you do buy, get a newer used car and one that is as small as you can manage with your family size. Our CRV can fit 3 carseats in the back.

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CrunchyVTMom

· #13 · Apr 26, 2009

I'd fix it.

Masel

Discussion Starter · #14 · Apr 26, 2009

Eight years ago when DH was laid off before he totaled his car and we had to replace it with insurance and some severance money. While paying cash for a car made the whole tedious process much more pleasant that was the worst car I've ever owned. (The sales man was from central casting. Dead lord was he a walking cliche complete with toupee.)

I guess we really need to assess the safety of the van. The lady at the insurance company urged me to have someone look at it since the initial assessment was just from walking around it. The accident mostly dented in the back door but also caught the bumper. The frame seems to be fine.

No matter what happens you can plan around car payments but car repairs seem to go by Murphy's law timing. I'm not convinced that pouring money into this old van is the best thing to do.

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Masel

Discussion Starter · #15 · May 11, 2009

Does anyone like getting feedback on these old threads.

DH has been out of town with the current project and wasn't really getting the full scoop on the home office. He was there for the last week and a half and feels much better about things. While there have been layoffs his department is going great. They have a huge project for him to work on next.

We started looking at vehicles again.

Usually Curious

· #16 · May 12, 2009

Quote:

Originally Posted by Masel

View Post

Does anyone like getting feedback on these old threads.

DH has been out of town with the current project and wasn't really getting the full scoop on the home office. He was there for the last week and a half and feels much better about things. While there have been layoffs his department is going great. They have a huge project for him to work on next.

We started looking at vehicles again.

That's good news!

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Masel

Discussion Starter · #17 · May 13, 2009

I know. I've had this painful twitch in my back for weeks and attributed it pregnancy but suddenly it was gone. We're not going to go crazy with money though.

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