Did I make the right decision (car related)?

[zoeysmom]

I have a 2001 Pontiac Sunfire. Nothing fancy, but it gets me where I need to go. There is a little body rust, mainly around the door frames. I bought it used and it hasn't caused me much difficulty in the 6 years I've had it - just some brake problems when I first got it...and I replaced the fuel pump last year..that cost about $900. I also got new all-seasons for it 2 summers ago, for about $500.

Although I'd like something newer/bigger (like a compact SUV), I don't really need it at this point. I was hoping the Sunfire would last me another year or two and then I could get something larger that will last me several years (ie. would be sufficicent when my boyfriend and I start having kids, etc.)

The transmission started acting up on me a couple weeks ago so I took it in this week while I was off. They've had it since last Friday doing tests (hoping to find a problem that could be fixed externally), but they ended up having to remove the transmission from the car and taking it apart. The problem was the torque converter and it caused wear and tear in the rest of the transmission, so it needed a complete rebuild. The quoted cost was $2700.

Ever since I took it in and it looked like the problems would require a pretty major fix, I've been looking at other vehicles. New and used. For what I want, I couldn't get anything cheaper than $10000 used (and that's a few years old), or $20000 new. So, either way, I'm going to have to finance it and pay payments. And, if I go used, there is no guarantee that things won't go wrong on that one and it wouldn't cost me so much to fix. I'm still paying of my student loan and have been making really good progress doing that and still saving a bit of money. I wasn't thrilled with the idea of adding a monthly payment to the mix because I know that would limit the amount I could save.

The problem is, a 2001 SUnfire is worth probably $1500 MAX. So, if I fix the problem, I'll be spending more than the car itself is worth. But, $2700 is still cheaper than getting a new car. I can't even sell my car as-is for $500 or whatever because it's currently sitting in the garage with the transmission parts on the table. I was already at $350 in labour costs, and it would likely be another $50/$100 to just tow it out of there if I were to sell it.

So, I decided to just go ahead and fix it. I spoke with the guy at the garage - who I know is trying to make a service sale - about how the car looked overall. He said the engine runs well (and sunfires tend to run forever), there are no strange noises, and the rust underneath is managebale. He said for a 2001, the car was in really good shape. If I got this fixed, he predicted the car should run without any major problems for another couple of years. It will also get me a vehicle likely tomorrow...and I'm really bored without a car!

I can pay cash for the repairs and be done with it...no payments. Which was the main reason I decided to go ahead with the repair instead of buying new (or late-model used). However, I know my boyfriend is going to say I should have just found something else. While I don't really care what he thinks

(he's never liked the Sunfire anyway) I'm still left wondering whether I did the right thing.

Maybe someone who knows a little about cars can give me a bit of reassurance!

(On another note, I wish I could be like my brother and his wife who have had 4 new cars since they got married - currently 2 NEW car payments, a mortgage, and probably some furniture/electronics thrown in there on credit. They make good money, but I wouldn't want their monthly payments! He just doesn't seem to care!)

 

[gardenandcats]

It sounds like the right choice for you right now.If the car goes a couple of years more for you then think of the money you have saved in car payments!

 

[momto3boys]

I probably would have done the same thing, especially if you had the cash to pay for the repair

 

[emrldsky]

When it comes down to it, you had to make a choice between what you can afford to pay right now and what you WISH you could afford to pay right now.

With the way the economy is, it's better to now take on an extra car payment. Then again, DH and I just bought a new car, but it wasn't because anything was wrong with mine. It was just too small, and with a baby on the way...

All in all, I think you made the right financial decision.

 

[februa]

I dont think I could ever tell someone that a negative investment like that was the wisest choice, but I understand why you did it.....too bad you couldnt find a used 2001 sunfire to buy for $1500....it probably would have lasted a couple years and you would have saved $1200 - thats the argument you wont be able to win, and why I personally wouldnt have made the same decision as you. Heres hoping this transmission work does give you a vehicle that lasts until you are ready to buy a new one! (but also dont forget you have over $3500 invested in repairing a $1500 car over the last year - another major repair should definately be a no!)

 

[calvin&i]

Oh my - that is a toughie! But I understand where you are coming from. We had to take similar decisions in the past. And we did put in 900$ on a car worth maybe 1500-2000$. But there is a limit to how much you are ready to put in a car and I think now maybe the time to take a decision on that. You have already commited to spending this money but decide that if the car needs another repair of such and such amount, you will think of other alternatives. We were at such a crossroad at the end of January when we would have had to spend money (though furnished by the insurance company of the person who hit our car at a red light) for repairs to make the car roadworthy and there was no guarantee how long it would run (1996 toyota camry with 160000 miles on it). We traded it in as is for 500$ and decided to lease a car instead of buying, which made the payments a lot cheaper than buying an used car. This seemed to be the best fit for us at this time. So that's an option you may think of later.

 

[lotso'cats]

I was in a similar situation a few months ago and decided to go the car payment route. The difference was my previous car was a 94 and only worth about 600-900 dollars. We needed a reliable car (I pray that this new to us one will be) and my husband's car is getting old and starting to act up more. It sounds like you made a good decision on getting your car fixed instead of a payment. I wish we could have done that(not that I don't love my new vehicle...just don't love the monthly payments

.)

 

[zoeysmom]

Originally Posted by Februa

.....too bad you couldnt find a used 2001 sunfire to buy for $1500....it probably would have lasted a couple years and you would have saved $1200 - thats the argument you wont be able to win, and why I personally wouldnt have made the same decision as you.

I thought of that too, but my concern with that was, if I bought something THAT used, what's to say that the fuel pump wouldn't die in 2 months or the transmission wouldn't go in 6? Then, I'm still out $1500 or more with the same decision as before...sink money in repairs in a car that's not worth, or again, buy something else. I completely understand what you're saying, but I think it's the "risk" part of it I wasn't willing to take on that regard.

I don't consider most repair work as an "investment" because I think paying for repairs is just part of owning a car...unless you get a new car every 3-4 years (I just can't wrap my head around leasing). When I repaired the fuel pump last year, I saw it as just a consequence of driving. I'd driven the car for 5 years and that was really the first big money I put into it. This work is a bit of an investement because I'm hoping the money I'm spending now will keep me "in-car" for another year or two - when hopefully I can get the car I want, not just one I can afford at the moment. From this point on, however, small repairs only.

I spoke with my boyfriend, and while I think he would have made a different choice, I think he understands why I did what I did. He mentioned that in the summer we might be able to take the door piece that has some rust on it and try to fix it up a little bit so it doesn't get worse (it's on the inside and not really noticeable until you open the door, but for some reason, it really bothers him!).

I'm coming to accept that there probably really was no "great" decision in this case. However, I know that the thought of a car payment at this point made me anxious (it's not that I can't afford it...it's that I don't want it at this point in my life/career).

 

[sneakymom]

Don't know much about cars- but I know a whole lot about repairing older ones. We buy new cars and drive them into the ground.

Last year at this time, the car I was driving, a 2000 Venture started giving us problems. We'd already put 4 new tires on it a few months before. Well- the water pump failed- I didn't catch it in time and so the valve cover gaskets on the engine went bad. It was almost $3000 in repairs for a van with 120,000 miles on it.

We needed something else. My kids aren't little- but the only other working car at the time was a 2007 chevy truck- that seats 3 people. There are 4 people in our family. And we wanted something dependable. So I did some research and wound up getting a 2010 Ford Focus. Much smaller than the van, and I could have really done without the car payment. But what to do? We need something else dependable- it's a royal pain having a car being fixed every other week (it just seemed like it)

We had the money- so we got the van fixed anyhow. I've got a 17 year old who is still in the process of learning to drive, and even though the van is NOT her favorite thing to drive- I feel better with her driving a tank

And having a 3rd car is kind of nice. Doesn't cost too much to insure it- yet. I dread putting a teenage driver on in a few months.......

Cheryl

 

[nerdrock]

I was in the same position almost 3 years ago. I was driving home from work when I hit a pot hole and my tire went flat. I had CAA come out and fix it, he said I'd be fine driving on the donut to go to work the next day until I could bring it into the shop to get new tires after work. Driving home from work the next day I made sure to go around the pot hole that had given me the first flat, only to hit another a few blocks later that made the donut go flat. Ugh. Called CAA and had the car towed to my parents house in another city, that cost about $100. They were so surprised when they got home and saw my car being dropped on the road by a tow truck, lol. They got me new tires and I got a parking ticket for parking on the road in the winter (it was March and there was no snow... seriously, who tickets a car with a flat tire when there's no snow!?).

Anyways, about a month later my friend and I were driving from our place across town to pick up some Thai food that we had ordered. Just as I'm about to turn off the main road onto another my car started smoking and I had to pull over. Called CAA and had it towed back to my parents again, they were out again so when they came home and saw me sitting on their porch and the car on the road they knew something was up that was more than just the tires. Turns out both the transmission and the radiator went on it. I think the quote to fix them was around $2500.

I was just mad. I didn't trust the car anymore. I told my dad that I didn't want it, it was only 6 years old, we had just finished payments on it and in the past two months we had $500 for new tires, $200 in towing and were facing possibly $2500 in repairs. We sold the car to the mechanic that was working on it, he originally said that he'd give us $1000 for it because it had new tires but then at the last minute only gave us $500.

At the time there was a lot of 0% financing on new cars, used cars were about 9%. I looked at both, but the cost for a used car was actually more with financing over the same term so I went with a new one.

I love my car but I hate the payments. I really wish that I hadn't been put in the position where I had to research and buy a car within a week span, but I'm fairly happy with my decision.

 

[calvin&i]

Originally Posted by zoeysmom

I'm coming to accept that there probably really was no "great" decision in this case. However, I know that the thought of a car payment at this point made me anxious (it's not that I can't afford it...it's that I don't want it at this point in my life/career).

Whereas there may not be any "great" decisions - the best one is what suits you the best AT THAT POINT OF TIME. It's better to put the money in a car you are familiar with than buy one cheaply and not know what's really the condition of the car.

For eg, for us, 2 cars are essential. We had one car (2000 civic with 165000 miles) till last summer where I would drop DH to work and then drive an hour to the university and pick him up on the way back from his hospital. We did this for 3 years. Last summer when we moved to Ohio we realized we needed 2 cars since DH needed to go to work and I would have to stay 200 miles away at the University during certain semester. So my mother gave me hers (a 1996 Camry with 160,000 miles). When the accident occured we realized that fixing the Camry was too expensive and we decided to lease since that would keep our payments much lower. We will both be done with our education/ training by the time the lease is up and can either just buy the leased car or turn in it. I do not like the idea of leasing since the car just feels like a rental but we realized we could absorb the financial hit in 3 years way better than we can today while we earn stipends. The idea of car payments + increased auto insurance really freaked us out and a lower payment while leasing was something that became the difference between having a reliable car and not.

 

[cheshirecat]

I think you made the right choice. Like you said you can't buy a new car for $2700.

Tomorrow I go for my yearly inspection and might have to make the same choice. My truck is a 1997 and I cannot afford a new one. So hopefully it passes and they find no big things that need to be fixed.

Three years ago it flunked and it cost me over $1000 to fix.

 

[adymarie]

2 years ago I bought a new Kia Rondo. It was the previous years model so they had 0% financing for 5 years. It made it very reasonable to afford. And they also have a 5 year bumper to bumper warrenty. I was having issues with the radio and bluetooth and they put in a new one. No charge to me even for service. I spend more in gas then I do in monthly payments and I get great mileage!

 

[zoeysmom]

Just picked my car up - all better!

Did it have that much rust before? LOL

It's done, and overwith...I'm going to try not to contemplate my decision too much and hope that the car I have now will last me at least until next summer, at which point, hopefully, my student loan will be paid off and that monthly payment can be replaced with a car payment.