Home › Forums › Closed Forums › Buying and Selling RE › Should we take the money??
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svelte.
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March 16, 2015 at 10:15 PM #783861March 16, 2015 at 10:22 PM #783863
FlyerInHi
Guest[quote=harvey]
And if they don’t pay it … ?[/quote]Reporting a car stolen when you left it Chula Vista is a crime (insurance fraud, etc..)
Letting the bank repo your car is not. It’s just living up to the letter of the contract.
March 16, 2015 at 11:14 PM #783865Guest[quote=svelte]
There is no denying that an older car is more apt to break down…that’s what drives the decision, not the trappings of middle-class prosperity.[/quote]Older cars do break down more… but stranded on the road is an old urban legend more reminiscent of the 1980s.
spd is right that anything after 2000 is a lot more reliable. And if you spend $1000 each year maintaining it, it will run for a long time. A Toyota or Honda, but not a BMW or a Ford.
Plus, car buyers generally are not buying basic cars like Corollas or Camrys. They are buying much fancier cars.
So yes, for the vast majority of Americans, succumbing to the trappings of middle-class prosperity does result in no pot to piss in, so to speak. Or self-induced stress due to keeping up.
But, hey, I’m perfectly OK with that… They do make the economy move vibrant for me. Just an academic observation, nothing more.
March 17, 2015 at 4:07 AM #783870
CoronitaParticipant[quote=FlyerInHi][quote=svelte]
There is no denying that an older car is more apt to break down…that’s what drives the decision, not the trappings of middle-class prosperity.[/quote]Older cars do break down more… but stranded on the road is an old urban legend more reminiscent of the 1980s.
spd is right that anything after 2000 is a lot more reliable. And if you spend $1000 each year maintaining it, it will run for a long time. A Toyota or Honda, but not a BMW or a Ford.
Plus, car buyers generally are not buying basic cars like Corollas or Camrys. They are buying much fancier cars.
So yes, for the vast majority of Americans, succumbing to the trappings of middle-class prosperity does result in no pot to piss in, so to speak. Or self-induced stress due to keeping up.
But, hey, I’m perfectly OK with that… They do make the economy move vibrant for me. Just an academic observation, nothing more.[/quote]
If you’re spending $1000/year on maintenance for your beater car. You are totally doing it wrong.
The point of a beater car is to skip every non-safety related maintenance and get 7-8 years out of the car, driving it into the ground, at which point it would be far more economical to buy another beater car and then sell your now dead beater car as parts/scrap metal then it is to actually spend $1000/year doing every “recommended” maintenance item.
Pretty much, all you need for a beater car is
1. Oil changes every 6 month/5k or 1 year/10k if you’re doing synthetic… longer interval if you really dont care
2. Brake pads and maybe rotors (maybe every 2 years for pads, every 4 for rotors)
3. Tires (every 5 years)
4. Smog inspection (every other year)
5. battery maybeMost good reliable car will maintain most of their reliability even if you neglect most of the recommended service. It’s a beater car, you don’t need to do everything that shops tell you need to do to fatten their profits. You drive that car until it breaks, which surprisingly will be a lot longer than most people think.
March 17, 2015 at 7:23 AM #783877Anonymous
Guest[quote=flu]Anyway, I think for the benefit of the OP, we really should put our heads together and give the OP constructive ideas on how to get out of this situation.[/quote]
We already did that.
They need to stop buying new cars and other things they don’t need.
Suzie Orman stuff.
There isn’t much more to it.
March 17, 2015 at 7:59 AM #783880cvmom
Participant[quote=harvey][quote=flu]Anyway, I think for the benefit of the OP, we really should put our heads together and give the OP constructive ideas on how to get out of this situation.[/quote]
We already did that.
They need to stop buying new cars and other things they don’t need.
Suzie Orman stuff.
There isn’t much more to it.[/quote]
100% agreed. This is not rocket science. Keeping up with the Joneses and driving new cars is not the path to financial security. Having a few $M in investments and driving beater cars feels way better than scraping along with financial insecurity but showing off in a new Prius/BMW/whatever.
March 17, 2015 at 8:58 AM #783881GuestFlu, $1000 per year includes consumable such as brakes. Much better than car payments.
People don’t expect to do maintenance other than oil changes. So after 4 years they buy a new car and rolll over the debt. That means they end up with car payments all their lives which the auto industry loves.
The term “beater” sounds bad. But nobody needs to drive a “beater” that looks bad and doesn’t run well. Start off with a Corolla at 0% financing and drive it for 25 years. keep it clean and decent looking. That’s very doable.
If you’ve got a well paying job, 25 years is a bit long… but maybe 15 years if you really want to save money.
March 17, 2015 at 9:50 AM #783884an
Participant[quote=flu]
Pretty much, all you need for a beater car is
1. Oil changes every 6 month/5k or 1 year/10k if you’re doing synthetic… longer interval if you really dont care
2. Brake pads and maybe rotors (maybe every 2 years for pads, every 4 for rotors)
3. Tires (every 5 years)
4. Smog inspection (every other year)
5. battery maybeMost good reliable car will maintain most of their reliability even if you neglect most of the recommended service. It’s a beater car, you don’t need to do everything that shops tell you need to do to fatten their profits. You drive that car until it breaks, which surprisingly will be a lot longer than most people think.[/quote]Totally agree and this is exactly what I’m doing. You can do oil change and brakes yourself. Parts are dirt cheap. Tires aren’t too bad either if you have <17" rims. You can get tires with 80k miles warranty for ~$400-500. That should last you at least 4 years if you drive 20k miles a year. So, really, it should only cost you ~$200-300/year in maintenance of a beater.
March 17, 2015 at 9:51 AM #783885CoronitaParticipant[quote=FlyerInHi]Flu, $1000 per year includes consumable such as brakes. Much better than car payments.
People don’t expect to do maintenance other than oil changes. So after 4 years they buy a new car and rolll over the debt. That means they end up with car payments all their lives which the auto industry loves.
The term “beater” sounds bad. But nobody needs to drive a “beater” that looks bad and doesn’t run well. Start off with a Corolla at 0% financing and drive it for 25 years. keep it clean and decent looking. That’s very doable.
If you’ve got a well paying job, 25 years is a bit long… but maybe 15 years if you really want to save money.[/quote]
Brakes cost that much? Man you’re either going to the wrong shop, or you have a shop ripping off your customers.
Front pads are like $200 tops every 2-3 years.
Front rotors+ pads are like $400 tops 4-6 years.
Rear pads are like $200 tops ever 4-6 years.
And rear rotors are like 6-8 years out.Where is this coming out to $1000/year on maintenance? This isn’t a german car we’re talking about.
March 17, 2015 at 10:46 AM #783886GuestWhat about when things like AC, alternator, master cylinder, widow regulators…. go bad?
I’m taking about a budget. Some years it’ll be more, some years less.
The point there is no need to trade in (and incur more debt) a perfectly good car if you have a large bill once in a while.
Likewise an older house will need maintenance. My friend just spent $500 to have his garage door serviced. I bought a new door and installed myself in my rental townhouse for less. Under $300. But not everybody can do that.
March 17, 2015 at 11:29 AM #783888spdrun
ParticipantNever trade it in. Sell it on Craigslist. You’ll likely get the same (or more) money, and you’re not enabling a system where dealers keep people in debt.
March 17, 2015 at 11:49 AM #783892UCGal
ParticipantI am late to this party.
From everything you’ve posted you should definitely do option 1.
AND
you should work on the debt – all 3 of the debts: auto, credit cards, student loans. Look at snowballing – starting with the highest interest (CC or car loan).Do not renew the lease on the van when it comes due. Buy a used car at that point. If you have a garage – use it for the car – cars like garages.
Your garage will be empty and able to take the car because you’ll be selling your “stuff” as mentioned above. Kids bikes and stuff can be hung from the rafters or walls to free up space.
I agree with the suggestion for looking for budgeting and cost savings. Look specifically at recurring bills – cell phones, switch to a pay/go plan like t-mobile, virgin, ting, etc. (We have 4 smart phones on Ting and our last bill was $68 for the month.) Switch to VOIP for your landline if you keep a landline – OOMA, MagicJack, whatever. Cable – do you need it? Do you need premium channels? Do you *have* to have high def – I went to battle with Time Warner and got the barest basic cable (no high def, no scrambled channels, no cable cards or settop boxes) and slow speed internet for $35/month. Sure beats the $120 I was paying for the same slow speed internet, 1 cable card, and high def channels.
MrMoneyMustache is a great blog/message board – but some of the posters over there can be less than friendly. That said – it’s a great place for ideas of how to cut your budget (and be green at the same time.)
Basically – the biggest thing you need to work on is spending. Every single NON essential purchase should be evaluated and considered. If you buy a starbucks coffee, rather than using that money to pay down debt, you’re effectively paying interest on that purchase. Essential purchases are food, shelter, debt service. Even clothes can be budget reduced – (Good Will, repairing tears and missing buttons.)
You can do it!
March 17, 2015 at 12:05 PM #783894CoronitaParticipant[quote=UCGal]I am late to this party.
MrMoneyMustache is a great blog/message board – but some of the posters over there can be less than friendly. That said – it’s a great place for ideas of how to cut your budget (and be green at the same time.)
[/quote]
Lol. Less friendly than here? I gotta see that 🙂
March 17, 2015 at 12:06 PM #783893CoronitaParticipant[quote=FlyerInHi]What about when things like AC, alternator, master cylinder, widow regulators…. go bad?
I’m taking about a budget. Some years it’ll be more, some years less.
The point there is no need to trade in (and incur more debt) a perfectly good car if you have a large bill once in a while.
Likewise an older house will need maintenance. My friend just spent $500 to have his garage door serviced. I bought a new door and installed myself in my rental townhouse for less. Under $300. But not everybody can do that.[/quote]
AC is optional, and at most needs a $50 recharge.
I’ve never recharged any of my A/C in any of my cars ever.Alternator usually lasts 15+ years on a japanese car. My 94 miata is still using the original one. master cylinders typically don’t just go out either on honda/toyota.
March 17, 2015 at 12:11 PM #783895CoronitaParticipant…One area to also save…..
Watch your food bill. Never buy food that isn’t on sale. Change your eating habits such that you eat what’s on sale that week.I know it’s seems ridiculous, until you notice that at your typically grocery store like Vons/Albertson/Ralph/etc, the difference between a sale item and a regular marked item is that 3x-4x more…That might not be such a big deal if you’re single. But If you’re got 2 + 3 kids to feed, that will be a big deal.
And by sale I don’t mean buying nearly expired food. I mean grocery stores regularly rotate normal food items that are discounted every week.
Now would also be a good time to give up pop and beer if that’s your thing, or at least reduce consumption of it. Not to mention, it would probably be healthier for you.
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