My car runs fine, and I don't think I need a new one. However, it's 10 years old and has 137k miles, so I'll need a new one in 2 or 3 years. But I was thinking, with interests rates being so low, like close to zero in some car ads, maybe it would be financially advantagous to replace it now if I can do so at a stupid-cheap interest rate. If I wait, I probably won't save up all the cash needed at the time of purchase, so the $$ difference looks fuzzy to me. Thoughts?

Sg

Same boat here, the amount saved from lower interest does not interest me enough to take on a car payment since I haven't had one for 4 years. Just my take on it...

You might be surprised how much longer your vehicle will go. 10 years old with 137,000 isn't even that much these days. I've been waiting for my SUV to die for a while but can't justify the purchase when it keeps going and knowing that I wouldn't be able to get much $ for it anyway. There have been intermittent 0% offers in the car world for many years now. I bet you could buy a particular model of car that is one year old and pay 10% interest and it would still probably cost you less than buying the same model new with 0%.

New cars sure are nice though.

Personal choice.

I don't like driving my 1996 Volvo with 209,000 miles on it because it might die on me, but it gets 28mpg (twice that of my truck), is built like a tank, hauls a lot of gear, and has been paid for since day 1, in November 2005.

It will be hard taking on a car payment, but I will when it dies, or the wheels fall off. Poor Hunter will probably get to drive it.

Zero to 2.9% interest is out there, and if you can swing the payment, buy one, if you want.

My thought is as long as the economy is in the crapper we are likely to see those deals around. And I doubt we are coming out any time soon. Car companies need to move cars and 0% is a very helpful way to do it. Drive it until the wheels fall off. And as Kaiser stated.....it might be longer than you think.

Start making car payments now, put them into an account and let the money accrue. Then, when your current rig dies, fix the old rig and use the rest of the money to take a 2-month long vacation to somewhere(s) awesome.

Guaranteed, when you look back on your life you will think more about those 2 months than driving your crappy old car.

Salmo, If you're driving a Subaru and the head gaskets haven't gone out on you then that is not too far away. This is coming from an extended Subaru family and it's hit us all between 100k and 130k. The repair for it really isn't too bad though and after repair you should be looking at another 100k before the issue comes up again. My vehicles are paid off annd won't be buying new until they have travelled their last mile.

205,000 on my 1998 Ford Ranger 4 x 4, I still get 20 mpg on the work commute.

If at all possible start saving the monthly amount of the car payment. When you have enough pay cash.

Those low interest deals are usually either take the low interest or take the cash incentives but not both. Often times it's better to take the cash back and hit up the credit union for the loan.

I still haven't listed my 98 Ranger 4x4. 115,000 miles. Hate to sell it but I never drive it any more and am paying insurance and tabs every year so need to free up some time to list it for sale.

Got rid of the big payment, bought a 4 runner w cash and have put about 2k into it this year to keep it running sweet. Hope to see 300k+ out of it if not more...

I still commute to work in a 1998 Honda Accord with 200,000 on it. I still get 32 mpg average with it also.

It's black and the air conditioner doesn't work anymore, but I haven't had a car payment in 6 years. I'll probably drive it at least another year... maybe 2?

Mark,

Try one of the A/C kits to recharge your A/C unit. I did that for the Volvo, $35.

I don't have a thing for new car vanity, so I'm not at all tired of my 2000 Outback. I just figure that sometime not too far after 170 K, it will become less reliable. And as Wntrrn points out, that might not be too far off for my vehicle. I have very strong feelings for reliable transportation and am willing to pay a bit more for it. (in the mid 60s, I was that teenager you saw crawling in and under his '55 Chevy in parking lots and alongside the road fixing his car, yet again.)

I also have cash in the bank. And will have more cash when we sell the condo, but we want to use that to buy down the house mortgage, not spend it on a car. While I'm not keen on car payments, I can afford one. But at near zero interest on a car, it would be like paying cash one month at a time. Doesn't get cheaper than that. And the car has to be replaced eventually. But if zero or cheap interest is still around in 2 years, then yeah, might as well keep driving it.

And Aunty, I thought about your idea. I might just work an extra few months and buy a new car at retirement. There's more than one possibility, that's for sure.

Sg

Oh, I didn't realize that you drove a Subaru Wagon. In that case you should get rid of it ASAP, because as I am sure you are aware, you will be continually mistaken for a lesbian.

Thanks Andy... I will!

RR,

You missed the part about vanity I take it. I like my lesbomobile, altho it's funny that that tag has stuck so long given that Subaru had endorsements by such studly figures as Crocodile Dundee and Lance Armstrong more recently than Maria. At any rate I'd have to be far less secure in myself to choose a car based on that.

Sg

Yeah but Lance is missing a nut.

I'm not judging.

Have fun at your softball game tonight!

Stlhead,

Maybe, but he rides like he's got half a dozen, although this year his performance is closer to mere mortal.

RR,

Not judging? Which is why you brought it up in the first place, right? Softball game? What game. We house builders don't have time for no softball. It's either picture rail or cabinet knobs tonight.

Sg