[USER]

How do you decide whether to put money into an old car or purchase a ”new to you” used one?
Three years ago, we purchased a 2008 Subaru Outback for $7k cash. It has 100,000 miles.

We have put about $3k into it since we purchased it but found out it needs about $6k of work just to keep it up and running, not including the lack of a/c that we would like to fix this year.

I’d put the money into this trusty car without hesitation (Subarus can last up to 300,000 miles) except we were already planning to purchase a used Subaru Ascent or Toyota Sienna in 2 years to add more seats to grow our family.

I’m wondering if we should just sell the 2008 Outback for a few thousand and buy the “new to us” car now even though we haven’t saved up for it as much as we would like?

An example of one we could purchase would be a 2021 Ascent with 58k miles for $24k.

While we do have enough to buy this in cash, we don’t want to dive into our house savings fund.

We would end up with a 5 year $350-400/mo car payment which would replace the $350/mo car payment for our second vehicle which we were already planning to pay off this month.

I’d love your thoughts.

[Josh]

Tough pill to swallow throwing $6k into a car that is 17 years old.
I’d consider buying something newer.

Sometimes it’s best to move on.

[David]

I probably wouldn’t put $6,000 into a $7,000 car when you already needing something bigger, plus it still won’t have a/c.

You can get a great used Sienna with tons of life left for $15,000 (think 2015-ish with 100,000-ish miles).

Will give you at least 10+ years of great service with basic maintenance.

[Mandi]

Mechanics special and move on. Are you keeping the car being paid off shortly OR that’ll also be sold in 2 years when you need the bigger one? It’s not super clear.

If that’s the case (trade in later) I’d just get the larger one early. 2 years is nothing timeline wise and it’ll come quickly.

Come up with whatever plan that allows you to have one or less payments, and preferably paid off within 3 years.

I don’t like car payments and zero payments are preferred; however, in this case I understand where you’re coming from and I wouldn’t exhaust the cash earmarked for other things.

Whichever plan you choose aim to be able to drive both vehicles for 10+ years (unless something like a car accident occurs). Reliability and longevity.

The longer you can go without a car payment (sinking funds to yourself) the better you’ll be off financially in the long run. Best of luck!!

[McMullin]

With 100k miles only, what does it need that will take that much with repairs? Sometimes I wonder if the shop is hustling you and telling you that you need all these things done but you really don’t.

100k miles on a Subaru is nothing… it shouldn’t need that much work. If so, try figuring it out yourself like replacing rotors and brake pads.

Even a whole new transmission doesn’t cost $7k.

That sounds extensive and fear inducing sales strategies.

[Kash]

But something newer used car with less miles 5-7 yo max 50k miles.max. don’t buy a junker

[John]

I wouldn’t buy a car you can’t pay cash for. I hate debt and it gets in the way of your FIRE journey.

It’s a big anchor.

[Author]

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