How Do You Decide When “The Time Comes”?
My spouse drives a 1996 Toyota Corolla with just under 200,000 miles, which he has been driving for the past 8 or so years. It is a decent little car, and has had its share of maintenance and other expected expenses, but hasn’t really had any major problems. My spouse affectionately refers to it at this point as his junker, and fully plans to replace it when the time comes with another “junker” type car that just gets him from point A to point B.
The question for me has always been, how do you decide when “the time comes”? One way, of course, is when there is a significantly large repair that needs to be done that would cost more than the cost of replacing the car. For example, if the engine in this car died, or the transmission, that would be a dealbreaker, and the car would need to be replaced. His car, according to the Kelley Blue Book value, would cost us about $3000 to replace with a similar car, so any repair approaching or exceeding that just wouldn’t make sense. We would probably actually replace his car if we had to do it right now with a 7-8 year old Toyota or Honda of a similar body type and half the mileage, and running Kelley Blue Book values for those cars, it would cost in the range of $6000. Any repairs that were a significant portion of that amount beyond normal maintenance costs would cause us to seriously reevaluate keeping the car.
The grey area for me begins when the car starts showing its age and needing significant but not drastic repairs. Today the car went in for its oil change, and the mechanic discovered that the radiator needs to be replaced. Replacing the radiator with an aftermarket model is going to cost about ~$300-$350, which is not by any means a dealbreaker in terms of the car’s value to us, but makes me start to wonder about it this will be an isolated incident or is just a sign of things to come. And replacing the car with another car that is also several years old means that there will probably be repairs associated with that one too sooner rather than later. It’d be nice if we had a crystal ball to see into the future and know what lies in the future for the car, but since we can’t, we just go by what we do know. The car isn’t due for any major regular maintenance for at least another 2 years going by its current maintenance schedule and projecting how much we drive it, and doesn’t have any signs of something else going wrong in the near future. So replacing the radiator and hoping this isn’t the first in a chain of car repair events seems the smart choice right now.
It will drive me crazy though if we spend this money to replace the radiator and then we have to replace the entire car soon. But for our financial situation and for how the car seems to check out right now, replacing the radiator is the sensible choice, and so that is what we are doing. Hopefully this allows the car to last another few years when we’d be in a better position to purchase a replacement. As for the repair, I have to adjust how much money is going into our emergency fund right now and it isn’t a pleasant expense, but we’ll manage it. More on that tomorrow afternoon.
If you enjoyed this post, make sure you subscribe to my RSS feed!
June 16th, 2008 at 3:36 pm
I’d say when a car costs more in 1 year than replacing it would, it’s time to look into a new one. Preferably instead of doing the final repair.
Perhaps even if it costs more in 3 years…but 1 year is a black and white YES.
June 16th, 2008 at 3:44 pm
Time to move….dont start throwing money into a car with 200k on it. Get what you can for it and move on.
June 16th, 2008 at 3:48 pm
You might want to consider getting a well maintained, older than 7-8 years old car, with 100K or so miles. That could save you a lot of cash. In 2004, I paid $1900 for a 91 Accord with 125K miles on it, and it needed next to no repairs for the last 4 years and I got 60K miles out of it. The key was finding an original owner who was diligent about maintenance and had records to prove it. When I just decided to replace the car (needed a total exhaust system, $500+, broken speed sensor, misfire, battery and other various problems) in March, I was still able to sell it for $500 in its current condition, and I replaced it with a 95 Civic Coupe with 110K miles on it for $2900. The new car is in perfect condition and runs like new– it just took a little looking and driving similar model/year/mileage Civics to know this one was a gem (having a gearhead boyfriend didn’t hurt either). All of that to say- you can find a hell of a nice car for $3000 if you do a little looking. One other thing I looked for was that the timing belt had already been replaced on both cars- since that is a necessary repair at around 100K miles, and is somewhat expensive on Hondas ($300-600 depending on model/year), you probably wouldn’t have to do that one again while you own the car.
The 91 was a tough one to buy because (in my mind) it sort of looked like an old car. But now a 13 year old Honda Accord/Civic, at least, has the same body style or very similar to all Accords/Civics made from 95-2005 or so… so you don’t lose much style by buying an older one. With good maintenance records, buying a newer car with the same miles is just wasting money.
June 16th, 2008 at 4:47 pm
That 300 dollars is worth two months of payments on a 6000 dollar replacement car. So, based on that, if you think the radiator will get you through more than 2 more months it was certainly worth it!
Zen
June 16th, 2008 at 4:55 pm
Once the repair bills start approaching the vehicles value, I would start considering its replacement. That being said, I don’t believe your Corolla qualifies yet. I’ve got a friend that is an ASE certified Toyota mechanic, so I see lots of broken Toys hanging around with him. I’ve seen LOTS of Corollas (and pickups) with lots more miles on them than yours has.
Was the radiator plugged, or starting to leak? When was the last time the coolant was changed? Usually, replacing it every 2-3 years (lifetime fill is BS) will keep up the additive levels and help prevent corrosion that kills radiators and heater cores. Just a thought. Good luck!
June 17th, 2008 at 12:42 am
Best guideline to use in this situation is if any repair will cost more than 1/2 of the car’s Kelly Blue Book Value. If it exceeds 1/2 then time to get rid of the car and find a newer one.
June 17th, 2008 at 7:58 am
good luck with your situation. my husband’s car (98 galant) had the air compressor go and the mechanic told us not to waste our money on the repair (we live in a place where AC is a must). so my husband has been searching for a reliable older car and — fingers crossed — will be picking up a used lexus today for about $4k. he’s made sure to carfax everything he’s considered and has done other research as well. this has not been an easy process, but we are also not going into debt to get a new car. totally worth it.
June 17th, 2008 at 9:18 am
IF, and that may be a big if, the car was taken care of well, she should be good for *at least* another 50k relatively hassle free miles. She’s a Toyota, after all.
On what Maggie said, it’s good and very true, but I’m not so sure on the timing belt advice. If you drive it another 100k miles on a car already with 100k, you BETTER be changing that timing belt. Honda’s, I believe, are interference engines. Not doing so would be nearly fatal to the engine, and just silly considering it’s routine maintenance. You’d rather not wait to find out it’s gone, that’s for sure. If they aren’t interference, I’m sure you’d still rather not get stranded.
Body style shouldn’t be too much of a factor, just get something you like/love/can live with. (If he’s looking for a junker, it sounds like she doesn’t have to be pretty!) As long as it’s in good shape, what matters is the internals and how well put together the car is. All those 1980’s and earlier Ferrari’s were gorgeous to look at, but the engine maintenance required was horrible. (Rolls Royce is still bad I believe.) I’m pretty sure most people don’t care what you drive anyways unless it’s absolutely shiny brand new or expensive (looking).
June 17th, 2008 at 9:23 am
The car has been well taken care of since my spouse has had it, so I think it is okay. I think.
We replaced the timing belt last time at 165K so we have a ways to go before we need to again. My spouse is convinced though in his car we need to do it every 60K not 100K, but still, a long way to go.
I didn’t consider the idea we could find a very old car with 100K or so miles - 100K is our target mileage for the next car so I assumed we’d need a 7ish year old car to find that.
June 17th, 2008 at 10:28 am
I too have a Toyota Corolla (& a Dodge) & have often wondered the same thing. I think keeping a vehicle as long as possible is a great idea & is what I intend on doing. However, when a vehicle begins to need repairs that are worth 1-1.5 years of potential car payments (though I know that you probably will pay cash for a newer vehicle) that’s when I think it’s time to consider getting a different car.
June 17th, 2008 at 3:04 pm
Congrats on the great miles!
Some good insight here on the different ways to look at the ‘terminal time’. Thanks!
June 17th, 2008 at 3:45 pm
I can totally relate. I just replaced my 1996 Corolla with a 2006 Subaru Impreza. The Toyota had 180,000 miles on it.
The paint was starting to wear bad, the ‘check engine’ light won’t go off and it had recently been broken into, which damaged the driver’s door and the dash. Those were the ‘last straws’ despite the fact that it was running pretty well. I just couldn’t rationalize another $500-$1000 in repairs and parts to put into a $2000 vehicle. That could go towards a down payment!
Got a good deal on a late model used car with decent gas mileage and good reliability reviews from CR. I’ll miss the Corolla though- it was a great car.
June 17th, 2008 at 4:33 pm
Its tough to say, when its time.
I drove a car that cost 2500 bucks (in 2002). From 70 thousand miles to 100 thousand miles … only one significant repair (it leaked antifreeze one day). From 100 thousand (actually 99965) to around 150 thousand, I spent over 2500 bucks on it (accident, alternator, muffler, alignment, pumps, battery things, horn, etc.). This was buying used parts and having one of my dad’s friends do the work cheap for us.
I rebelled on spending so much. My dad said that its worth it.
A year ago I gave that car at 125 thousand to my sister. I’ve had a 200 dollar repair since then (I agreed that the first ’significant’ repair bill would be my responsibility).
It was golden for 30 thousand, terrible for 5 thousand. And has been golden for 25 thousand more. Its hard to tell when its ‘gone’.
June 17th, 2008 at 7:20 pm
Re: Foxy- On Hondas and Toyotas, I believe, the timing belt can break and the cars just stop (this happened to me in ‘95 on my ‘87 Corolla and on the ‘91 Accord as well). However… on my boyfriend’s 98 Saturn… timing chain/belt broke and blew the engine.
And this is why I love Hondas.
June 19th, 2008 at 1:16 am
I reluctantly parted with my ‘94 Corolla in December ‘06 after 12 years of almost completely trouble free service. Never did get the belt changed (got lucky there; that’s what did my Camry in) but good about oil changes. I brought it over to Meineke when the exhaust got noisy; they put it up on a lift and checked it quick for me and told me, yes, it was time!! Lots of salt around here. Perhaps have someone take a quick look at it - it may very well last a couple more years. I think I saved a fortune by buying it new, changing oil, and keeping it so long. Heard too many horror stories from people who bought used cars with problems. Toyotas and Hondas hold their values so well that used ones are quite expensive - I’ve seen new ones cheaper than 1 or 2 year old ones. If I could get a Corolla with as much room inside as my Honda Fit has, I’d be driving a Corolla again. Thanks for your blog it’s great!
June 24th, 2008 at 4:34 pm
I drive a 1990 Toyota Camry (167K miles) and have pondered the same question - when is it time to move on?
The answer (or criteria) is when the safety systems start to fail. For example, it has an integrated shoulder strap that automatically moves over you when the door closes. It stops working : bye-bye.
I try to spend around $1k per year on hard maintenance (engine work and such) and keep the brakes/oil/etc religiously maintained.
This Girl’s a 5-speed and gets ~30mpg in the city, so I’m hoping to make it a few more years before needing to move on.