digdug18 wrote:
Me and wife were thinking about trading it in and buying a newer car, both of us do not want a car payment. Only thing I need help with is should I spend $3k+ on a car only worth $3K at most?
I have recently replaced both front axles, had the timing belt, water pump, pre-tensioner done. Car needs tires, front brakes, struts, and a possibly a transmission rebuild.
build a spreadsheet with a reasonable list of the expected failure modes over the next three years in column A, parts cost to repair those failures in column B, labor cost to repair those failures (if not DIY) in column C.
tires / brakes / struts are wear items, not failure items, but they should be included because they represent costs you may not have to incur in the same time window if you bought a newer car. use the data to drive your decision.
then, and this is the key, take the amount of money you'd be willing to allocate to a car payment, and put it in a money market account every month. withdraw from this account only to make required repairs / maintenance. when the 'teg finally has a failure that makes repair not economically viable, buy a used car for less than or equal to the balance in the money market. pay cash for the car, and continue to make the monthly payment to your money market. repeat this cycle for the rest of your life.