Run your car into the ground VS buying a new car every few years?

[Gearhead660]

I guess I kind of do both ends off the spectrum. I drive old rusty beaters. Run em until they say uncle. But the wife gets a new vehicle every 3-5 years. Pay cash, no payments. Want her to have a dependable car for going to work and for carrying the kiddos. Don't want to be working on hers.

 

[1kzwoman]

Haven’t decided yet.
1946 Jeep CJ2A run like a top!been in family longer than me,
1998 Mercury Moutaineer less than100k also runs like a top Daily driver Purchased used former Hertz rental,
2006 Toyota Tundra AC SR5 4x4 59k purchased new ! No rust issues, no mechanical issues, no grease worms.
routine maintenance by the book on all vehicles.

 

[Wooden Head]

Have 2002 Ford Ranger, V6, Auto, 2WD, 86k miles. Bought with 12k miles for $15k. Still runs good, mighty rusty. To replace new $45k.
That rust ain't so bad after-all.

 

[Ashful]

Do you typically buy a new or almost new car and drive it for years past its initial warranty and then, once the car loan payments are complete, you keep the car making repairs along the way, and run it into the ground, only replacing the car once it either is no longer safe to drive or the repair costs outweigh the price of the car.

or..

Buy a new or almost new car, pay the monthly loan payments, and then 3 or 4 years later you trade it in for a newer car, therefore always having a car payment but you always have a newer car under warrenty?

Wow... that's like saying do you eat one raisin for lunch, or a whole elephant? There are miles of space between these two extremes.

Unless my wife manages to total it, which she had a habit of doing pretty frequently for several years, I replace every car around 10 - 12 years. At that point, they're still in excellent cosmetic shape and have cost me zero or nearly zero in repairs. In fact, I'm usually surprised with the amount people are willing to pay for them when we are done with them, I always seem to get well above KBB value on private sale.

I also always favored buying cheaper cars I could afford, over ever taking any car loans. I'd rather drive something for which I can afford to pay cash today, than something upon which I'm going to pay interest the next 60 months. Even my current truck was purchased used, although I could have easily afforded new, but what's the point? I think the prior owner paid $46k, and I bought it with 9k miles around $31k (cash), a savings of nearly $1700 per 1k miles for a nearly-new truck.

Over the years, I've tried to build a good financial case for replacing several 10-12 year old cars, and I've always failed. It doesn't really matter, they were only exercises in self-gratification, I was replacing the car for reasons that weren't solely financial. The gap closes close enough at 10 - 12 years, that I don't mind the smaller financial hit of replacement, at that point.

If you really do plan to drive one "to dust", you have to consider the secondary impact of driving something less reliable or less cosmetically acceptable, on everything from getting to work on-time everyday, to the assumptions your employers is going to make about your financial state, as they're trying to decide bonuses and salary increases aimed at retaining your valuable services.

 

[Shank]

, to the assumptions your employers is going to make about your financial state, as they're trying to decide bonuses and salary increases aimed at retaining your valuable services.

Curious on your opinion and explanation on this one.

 

[old greybeard]

New cars are so dependable and well made that almost any car is good for 150-200k with few repairs, if basic maintenance is done.
Selling every 3-4 years or leasing is financially short sighted. Save, pay cash, keep 10+ years, maximize your 401k and you’ll retire early and financially sound.

 

[lml999]

I buy european cars when they start to hit the flatter part of their depreciation cycle, typically at 5 years old, 80-100K miles or so. Cost at that point is typically 20-35% of new, and in many cases they still *look* new. I have a good private mechanic who helps me get these cars to 250K miles, then I do it again.

 

[Ashful]

Curious on your opinion and explanation on this one.

I've learned, both as an employee and later as a manager, that a lot of assumptions are made about each employee's financial situation, when determining what initial offer to make for their employment, as well as the distribution of retention bonuses and salary increases. The more one believes an employee needs a job, versus having the freedom to walk and seek another, the more incentivized that employer is to weight them favorably, in any discretionary distributions.

What you drive is one place where obvious, even if mostly erroneous, assumptions can be made about your financial independence.

Being a good employee comes first, obviously. But when there are more than one "good employee", other factors sometimes weight these decisions one way or the other. This is also obviously not uniformly the case, across all professions or types of employment. But if you've ever heard, "we better make him a good offer, he made a lot at his last job and probably won't accept less," then you've already seen this bias at play.

 

[Shank]

I've learned, both as an employee and later as a manager, that a lot of assumptions are made about each employee's financial situation, when determining what initial offer to make for their employment, as well as the distribution of retention bonuses and salary increases. The more one believes an employee needs a job, versus having the freedom to walk and seek another, the more incentivized that employer is to weight them favorably, in any discretionary distributions.

What you drive is one place where obvious, even if mostly erroneous, assumptions can be made about your financial independence.

Being a good employee comes first, obviously. But when there are more than one "good employee", other factors sometimes weight these decisions one way or the other. This is also obviously not uniformly the case, across all professions or types of employment. But if you've ever heard, "we better make him a good offer, he made a lot at his last job and probably won't accept less," then you've already seen this bias at play.

Essentially employers don't like the notion that their employees can walk away is what you're saying....

 

[brenndatomu]

I found out that my former boss absolutely looked at what people drove, too old/junky, you might be a slob, too nice/new/expensive, you didn't need the job enough to stay around long.
I got lucky the day I interviewed for current job, I drove my fully restored/lifted/V8 conversion 1985 Bronco II...turns out he was an old Ford truck lover.
If I had drove my old work car (RIP) that day he probably would have said, NEXT!

 

[GrumpyDad]

Warning: Total run-on sentences..

Do you typically buy a new or almost new car and drive it for years past its initial warranty and then, once the car loan payments are complete, you keep the car making repairs along the way, and run it into the ground, only replacing the car once it either is no longer safe to drive or the repair costs outweigh the price of the car.

or..

Buy a new or almost new car, pay the monthly loan payments, and then 3 or 4 years later you trade it in for a newer car, therefore always having a car payment but you always have a newer car under warrenty?

Ive always wondered about other people's thoughts on this. If you buy a car, keep it for 10 years or so, and run it into the ground, once its near worthless the trade-in value is kaput. You have to pay for repairs and you dont have a warrenty.

On the other hand, if you buy a new car and trade it in every couple of years, you have a pretty good trade in value, always have a warranty, and you always have a newer car.

Thoughts?

I own a Honda so, there's the third option. Buy a new honda with incentives, pay it off slowly....continue to run it, then run it some more, ...then again run it some more....then when you are sick of it and want something new, look at the prices people are paying for new cars,,....run the old car some more....then again some more.......then when dealers are desperate and blocking the door, maybe consider selling it to private party and get something new. Since it's a Honda....I'll still get more resale than I would a 5 year old American car.
^That's my logical brain working.

My illogical brain also owns 'a sports car' whereas I spent $1200 for each wheel and $400 per tire, and I burn the tires off every 4 months racing, or just general spirited driving.

I figure it all equals itself out.

 

[Ashful]

Essentially employers don't like the notion that their employees can walk away is what you're saying....

That's not what I was saying, but probably true! All I'm saying is that employers make assumptions about your financial situation, as one of many factors in determining where you might land in a discretionary salary range. Although not really valid, as many of us could afford to drive more expensive cars than we do (or vice versa), the vehicle you drive is often a taken as one of very few available outward indicators of your financial situation.

I found out that my former boss absolutely looked at what people drove, too old/junky, you might be a slob, too nice/new/expensive, you didn't need the job enough to stay around long.
I got lucky the day I interviewed for current job, I drove my fully restored/lifted/V8 conversion 1985 Bronco II...turns out he was an old Ford truck lover.
If I had drove my old work car (RIP) that day he probably would have said, NEXT!

Yes. Just like the suit you wear, which you may never wear for anything other than a job interview, assumptions are made. Not necessarily always valid assumptions, but unavoidable, nonetheless.

I guess this horse is sufficiently flogged.

 

[MountainHawk]

2003 jeep Grand Cherokee 231k on it and drive it every day! Gets me to work in unplowed 2 foot of snow on the road. Do all the fluid changes my self and have repaired/replaced pumps, alternators, hoses and belts. It's a beast that can tow too! I just have to do some acrobatics to get it to pass ca smog. Love my WJ! Wouldn't want a newer car with all of the electric chip gremlins that may be unleashed one day. To celebrate it's 20th bday I am going to take it on a nice off road overland camp trip.

 

[PaulOinMA]

My wife and I tend to be like Ashful with our recent history.

My wife won a 2012 Ford Escape Limited Hybrid at work in September 2011. Sold to Carvana in June 2022. 99,700 miles. Had the rear wheel well rust common to that era Ford. There is even a Ford TSB. Getting close to not passing inspection here in MA. Was going to ask the vo-tech school in town do the rust repair. Decided to sell.

I ordered a 2022 Escape, and my wife is driving my '14 Escape now. 98,500 miles on the '14. Bought used in May 2015 as a trade-in from a friend that was GM at an Audi dealership. Friends-and-family price. Well below MSRP.

She ordered a '23 Bronco Sport and we'll sell the '14 Escape. She also has two fun cars in the garage.

A friend uses up vehicles. Kept his '94 Impala SS over 300,000 miles. Dealer gave him a goodwill $500 towards a low miles Chrysler 300C AWD that was being driven by the dealership owner. He asked what they do with a 300,000-mile car. It will go on a boat to Africa. He kept the 300C over 200,000 miles and traded it in on another.

 

[old greybeard]

Have 2002 Ford Ranger, V6, Auto, 2WD, 86k miles. Bought with 12k miles for $15k. Still runs good, mighty rusty. To replace new $45k.
That rust ain't so bad after-all.

Get some fluid film and spray that rust. Especially your rear shackles. They go fast on rangers. My 1994 rusted away while the drivetrain was still strong at 160k. My 2001 looked great at 120k when a drunk Russian totaled it. Bought it with close to your mileage, fluid film stopped the rust. The ohc 4.0 will run over 200k easy.

 

[PaulOinMA]

..., too nice/new/expensive, you didn't need the job enough to stay around long .T!

My wife bought a low mileage CPO 2004 Audi TT roadster as a fun car. Former Audi salesman that sold me a CPO 2003 Audi A4 Avant brokered the deal for us. It was delivered to the sports car dealer he was working at. They wanted the TT, and my wife was eyeing a low-mileage Maserati in their showroom. The salesman said it would be the Audi and only a little more money.

My wife was also saying at work that she was underpaid. She was. I commented that it will be hard to argue that point showing up driving a Maserati.

 

[PaulOinMA]

Since we're talking old vehicles ... here is my review for an extractor to get the rear brake caliper bracket bolts off my '14 Escape on Monday. Worked GREAT!

https://www.fordescape.org/threads/rear-caliper-bracket-bolts-extractor-needed.121587/

 

[walhondingnashua]

I drove My 2003 Ranger w/ 4.0 to 170k. Traded in on 2010 F- 150. Drove F-150 to 212k. Bought almost like new 2015 Siverado from father w/ 90k. Will drive it to 175-200k or until my father decides he wants to get a new truck, then I'll buy his.

My wife is harder on vehicles and puts a lot of miles on. I trade her's in every 3-5 years while resale is still good and before she makes repair costs go up.

I would buy a used truck that my father or I drove and feel bad for the person that gets my wife's trade in. Vehicles are a tough market, especially now.

 

[tlc1976]

I've learned, both as an employee and later as a manager, that a lot of assumptions are made about each employee's financial situation, when determining what initial offer to make for their employment, as well as the distribution of retention bonuses and salary increases. The more one believes an employee needs a job, versus having the freedom to walk and seek another, the more incentivized that employer is to weight them favorably, in any discretionary distributions.

What you drive is one place where obvious, even if mostly erroneous, assumptions can be made about your financial independence.

Being a good employee comes first, obviously. But when there are more than one "good employee", other factors sometimes weight these decisions one way or the other. This is also obviously not uniformly the case, across all professions or types of employment. But if you've ever heard, "we better make him a good offer, he made a lot at his last job and probably won't accept less," then you've already seen this bias at play.

If I’m understanding this correctly, it sounds like the opposite of everything I’ve ever known. The more you actually need the job and the money, the worse you are treated and the less you are paid, they know you won’t leave. But if you don’t really need the job and have the option to walk away anytime, they will bend over backwards to keep you. If there’s any question about your true financial situation, your employer has the resources to find that out.

Bad judging could go either way. Either you are lesser for being broke and driving a beater, or you are lesser for being broke and wasting your money on something nice.

Working hourly at an office or shop, I’ve never been judged by an employer for what I drive. I drive what makes sense to me, cheap and easy for me to fix and keep on the road. I’ve almost never been unable to make it to work due to vehicle problems. I’ll stand behind my belief that it makes no fiscal sense to drive something nice looking in the winter, it’s only gotta have good tires and be reliable. Or if I am working on a jobsite, same thing. Quite a few guys I work with are good with cars, therefore drive something reliable but not necessarily pretty, and save their nice vehicle for pleasure.

Now if my job required putting on an image for the company, taking clients out, etc. then yes I should have something nice.

I did get good comments about my old Geo Tracker at an interview in the middle of winter once. I get more comments on that than anything, how they would go through anything and wish they never got rid of it. Anyway they wanted me but the pay and benefits weren’t that good. Almost 10 years later their listings on Indeed tell the same story, so it wasn’t just me.

 

[Shank]

That's not what I was saying, but probably true! All I'm saying is that employers make assumptions about your financial situation, as one of many factors in determining where you might land in a discretionary salary range. Although not really valid, as many of us could afford to drive more expensive cars than we do (or vice versa), the vehicle you drive is often a taken as one of very few available outward indicators of your financial situation.

Yes. Just like the suit you wear, which you may never wear for anything other than a job interview, assumptions are made. Not necessarily always valid assumptions, but unavoidable, nonetheless.

I guess this horse is sufficiently flogged.

Time to stop contributing to retirement and get that new Porsche! Just kidding...

 

[Ashful]

If I’m understanding this correctly, it sounds like the opposite of everything I’ve ever known. The more you actually need the job and the money, the worse you are treated and the less you are paid, they know you won’t leave. But if you don’t really need the job and have the option to walk away anytime, they will bend over backwards to keep you.

I said nothing about being treated worse. But with regard to pay, yes sometimes initial offers, bonus distributions, and increase distributions are based on assumptions of the portability of an employee, or assumptions about how well others have or would pay them for the same services. This portability usually comes with some assumption of financial circumstances, and what you drive can have some impact on those assumptions, as errant as that logic may be.

If there’s any question about your true financial situation, your employer has the resources to find that out.

Of course, but few do. I suspect most are not making these decisions maliciously or even intentionally, but rather subconsciously.

However, now that you mention it, I did have the COO of my past employer tell me that he drove by my house to see where I lived. Creepy.

 

[peakbagger]

BTW, its pretty common for employers to run credit checks on potential employees.

When the federal government built a federal prison nearby, they went to a lot of trouble to hire locals. They had seminars with potential applicants on how to improve their credit rating as the fed would automatically reject folks with ratings below a certain level. The rational was that someone with a bad credit rating might be tempted to accept bribes from prisoners.

 

[Wooden Head]

Get some fluid film and spray that rust. Especially your rear shackles. They go fast on rangers. My 1994 rusted away while the drivetrain was still strong at 160k. My 2001 looked great at 120k when a drunk Russian totaled it. Bought it with close to your mileage, fluid film stopped the rust. The ohc 4.0 will run over 200k easy.

Yes, the shackles have been replaced along with leaf springs, anti-sway bar, gas tank straps.

 

[bholler]

Indiana Jones said “it’s not the years baby it’s the miles”

Within reason really low miles on a fairly old vehicle can cause big problems as well especially if it wasn't prepared to be stored properly.

 

[bholler]

I haven’t had full coverage since 2001. Back when my first car was 11 years old and still in excellent condition, was also a fairly rare model, I slid into a snowmobile trailer that cut in front of me. All it did was slice through the headlights and crinkle the fender on one side. Insurance company first said it was too old and they wouldn’t fix it, then the guy from the head office looked at it. He said they would fix it this time but never again. So after that I dropped to PLPD and never went back. With the money I’m not paying for full coverage, I could have it fixed myself, or buy something else. I can source my own parts. And least in my experience, body shops cut you a deal if you’re paying for it yourself, vs insurance paying for it.

That car is retired after putting 200k of my own miles on, and it eventually rusting apart. But I have others, like my 89 Celebrity that I bought in 2003 with 100k, now has 307k and I’d drive it anywhere. I keep my vehicles until they’re no longer safe due to rust, and the next step is the scrapyard. Anything else can be bolted in.

Aside from my first car which was a $7k loan, I’ve never paid over $1500 for a vehicle. That may change next time I need to find something, as used car prices have gone to outer space. But I’ve got 4 vehicles right now. All currently usable except my Jeep which I’m in process of totally redoing the floors and some of the uniframe, but after that it will be good for a very long time. And my mint condition Olds Wagon I’d have to be dying before I let that one see road salt.

I had a few celebrities mainly as beater cars and those things just wouldn't die even if I was trying to kill them.