Is your car costing you too much money? Do you see your mechanic more often than you'd like? When is it time to buy a new car?
I'm quite frugal. I don't purchase new vehicles. I buy used cars and I pay cash.
However, older cars do have drawbacks. I don't really care about body style or appearance. That's important to some people. To me a vehicle is a way to get from point A to point B.
What I care about is maintenance. Older vehicles have higher maintenance costs than newer vehicles, unless you're driving an Audi, then your maintenance costs are high no matter what.
When Does Your Vehicle Cost Too Much?
It can be hard to determine when a vehicle is ready for the junk yard. Most modern cars are incredibly reliable. The drive train (engine, transmission, wheels, etc) often last a lot longer than the electronics (A/C, radio and power windows/locks/seats).
In many cases you'll have a perfectly drivable car that has no heating, cooling, ventilation or radio. At that point, even a die hard like me would ditch the vehicle.
Here's a few of my rules for junking a jalopy.
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The repair costs more than the vehicle is worth.
This is an easy one. If the problem is major like a transmission, it may be cheaper in the long run to get a different vehicle.
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The vehicle is no longer safe to drive.
If your brakes, windows, doors or seat belts aren't working, it's time for a trip to the shop or a new(er) vehicle. I'm not cheap enough to trade money for my life. This goes double if you have kids.
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You're always in the shop.
Your vehicle may start to "nickel and dime" you to death. If you're in the shop every month with some new repair, it's probably time to look around for a different car. Your time is money and if you're wasting time driving to and from the mechanic and lining up transportation, you may find that your time is better spent doing something else.
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Your Car is unreliable.
If you use your car to commute to work, you need a reliable car. If your car doesn't start regularly, check with a mechanic. Is it worth fixing? If not, time for different vehicle.
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Your drive long distances in bad weather.
I grew up on a farm. We drove 26 miles to school (when I got a car) in good and bad weather. Breaking down in sub zero weather can be deadly. If your commute is long and/or you drive in dangerous weather (40 below zero) you should have a reliable vehicle.
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