My 1998 Honda Civic with 103k is getting a paint job this spring. I figure a paint job is cheaper than a car payment since the car wont bring much in on the trade. Would I like something like a mini van to tote my family around? Yes but the car runs great and only needs a fresh coat of paint.

I agree with the sentiment of the article.

Cars - or trucks - are the one status thing that most anybody can afford, but probably shouldn't. It is a huge drain on people's pocketbooks.

I'm an advocate of the 3-5 year old used car rule. And, I really don't care for the certified vehicle programs - it's just a way for companies to inflate used car prices. If you really need to spend $20,000 a year to drive that new Porsche or even $10,000 to drive that new fancy pickup - I think it's great, because then I can buy it after 4 years and drive it for $5,000 a year.

That said, my wife just bought a brand new car last week - a Toyota Camry Hybrid. It's a nice car with all the options, and she drives a bunch of miles - so I liked the idea of higher gas mileage. I took it out last night and filled the tank for the first time. It had gone about 405 miles on 11.4 gallons of gas for a total of 35.5 miles per gallon - mostly city driving. On the 3.5 mile trip home from the gas station it got 48.7 miles per gallon (it gets much better mileage after it's warmed up) We figure it will save about $120 a month in gas over her minivan.

I figure the car will cost about 4,500 a year to own - for the first 100,000 miles, excluding taxes, insurance and gas. The second 100,000 miles will cost probably about 2,000 a year - which is about as cheap as you can drive a reliable car.

Couldn't agree more. My $52K Aviator cost us less than half that at 3 years, and my $48K Audi cost me $7K. If you can spot good maintenance and are able to do the basic work yourself, you CAN have it all...and have fun too. I have never bought new, and probably never will. Of course, by used cars have gotten less "used' over the years...I'm limited to brakes and maybe the occasional control arm...not the complete rebuilds I used to have time for years ago.

The wife's Mustang and my Lincoln cost me about $1400 per year, total. That's gas & oil changes. We've had the Mustang 13 years come April, and I've had the Lincoln 4-1/2 years now. I'd love to get something newer, but, as is the point of this topic--I can't afford anything newer. Fortunately I'm a good judge of cars, in all the years of owning these 2 cars, the only mechanical issues ever (knock on my head!): the 'stang needed a fuel pump about 9 years ago, and an alternator last year. and I've had to replace the right front airbag strut in the Lincoln. Aside from that, tires, brakes, oil & grease...

And honestly, I have no idea how people pay for cars, houses, gasoline, food, and still have money to pay for boats, RV's, etc...

There's no way that I'm going to pay out $1300 a month for a vehicle... ever!

And this is why:

... or a boat that is a RV!

LOL---but remember, our combo "summer-home-RV-boat" cost us less than a new 26' Cobalt. And, we had to sell our house just to afford THAT! It costs less than $100 per month for slip & storage... Everyone thinks we're rich--hardly! I could probably GET rich if I wrote a book on how to LOOK rich....

Troop -- Have you driven a 550i yet?

I love driving and riding the BMWs, but I never buy new (almost). The Jeep is 9 years old with 80k and works fine, of course. I take care of them all so they look new "for ever" just like their caretaker, haha.

Rule nr 1; Don't get something you cannot afford to pay off in 3 years.
Rule nr 2; Get what you like not what someone else tells you to get, you are the driver and you should enjoy it. (Just like the boat)
Rule nr 3; We spend so much time in the car (a lot more than on the boat) that it shoudl be comfortable and safe.

I can go on but bottom line; Drive what you can afford and keep it safe and enjoy it.

h

I think it's just more of the "I want it so I shall have it" attitude too many of us have. Many of us can remember what a major milestone it was when we were growing up and our parents bought a new car - or even a new-to-them car. My Dad used to mark the passage of time in terms of vehicles: "Yeah, I remember when that happened, it was right after we bought the Buick."

The difference is, most people in the days of common sense knew if they could afford it or not, and saved up or bought less or waited until they could afford it. Now, no one waits. Also, the cost of vehicles today, relative to incomes, is more than it was then IMO (although, not as much so as it might first appear).

That's what I said right before I bought the Sea Ray! But it's paid for too.

As a kid, walking back and forth to school, I often joked about how nice the low riders were sitting on the yard of such junk homes.

Typical sight:

Low rider: Custom murals - Custom suspension - Custom interior - Expensive rims - etc...

Home: Two rooms - Torn screens - Peeling paint - Dead landscape - Broken garage door - etc...


I guess maybe even on skid row a homeless guy will take a chance to have a better shopping cart???

There is a lot of truth to the article.

I have customers who have purchased or leased new vehicles that now are 2 or 3 years old, and darn near have a panic attack awaiting the results of their annual New York State Safety Inpection - a brake job or set of tires would put some people over the deep edge. It really is amazing how much financial mess and stress people will endure to try to keep up with the Joneses.

Next, there are people who have HUGE loan balances left on vehicles that are one step away from heading to the junkyard. Owing a lot of money on a vehicle that is unreliable and needs major repairs, far beyond the worth of the vehicle, is a very unenviable position to be in.

Good people often make bad decisions. In some ways, I am the like the Grim Reaper, and have to break bad news to people over and over again.

On a personal level, buying a new car is the stupidest thing anyone could ever do, especially for a repair shop owner. I could make a used one go forever cheaply, but I use my skills instead to earn a comfortable living fixing cars in order to be able to afford a new one every once in a while. Kind of a paradox.

I do agree with some of these points, no one that I know buys less espensive cars anymore, everyone leases so they never pay anything off, but that doesn't seem to bother many either, they don't want to have to fix things and have breakdowns. For me I like having 2 paid off cars, that are simple enough for me to maintain, every so often I do have to get something fixed but it's not that big of a deal. New is not always better. Putting tons of $$ into depreciating investments never made that much sense to me, so I try to make the cars we have last as long as is reasonably possible. The boat is even older, by a lot, but it just got re-vitalized with a new deck and repaired stringers. Hopefully the original engine and drive will keep soldiering along.....

My mechanic says that's the worst part of his job. So many folks are so far over their head, and they just can't handle when they need a major repair.

I just can't figure out anybody who takes out a car loan for more than three years. If you have to, you simply can't afford the car, and should buy a cheaper one. That said, a three year loan to buy a Honda Civic gives you about a $600 a month car payment - if people would just suck it up and pay it, however their lives would be much easier.