Comments on: When do you walk away from an old car? http://www.canajunfinances.com/2008/03/31/when-do-you-walk-away-from-an-old-car/ Personal Finances and Consumer Concerns, essays, stories, examples and how to articles with a distinctly Canadian Point of View Fri, 21 Nov 2008 04:31:36 +0000 http://wordpress.org/?v=2.6.3 By: Big Cajun Man http://www.canajunfinances.com/2008/03/31/when-do-you-walk-away-from-an-old-car/#comment-1261 Big Cajun Man Wed, 02 Apr 2008 12:43:33 +0000 http://www.canajunfinances.com/2008/03/31/when-do-you-walk-away-from-an-old-car/#comment-1261 Good comments, I still don't know what the "right" answer is, but they have flip flopped and will now put a new transmission in the van and attempt to keep it on the road for a while longer. Not sure that is the right decision, but, what are you going to do? --C8j Good comments, I still don’t know what the “right” answer is, but they have flip flopped and will now put a new transmission in the van and attempt to keep it on the road for a while longer. Not sure that is the right decision, but, what are you going to do?

–C8j

]]> By: Gene http://www.canajunfinances.com/2008/03/31/when-do-you-walk-away-from-an-old-car/#comment-1260 Gene Tue, 01 Apr 2008 23:09:56 +0000 http://www.canajunfinances.com/2008/03/31/when-do-you-walk-away-from-an-old-car/#comment-1260 I've heard the argument "Don't fix the car if it is worth less than what the repairs cost." In this case, if the transmission is worth $2000 in repair bills, and the fixed vehicle would be worth $2500, and the unfixed vehicle was worth $600 to a scrap dealer, it would not make sense to fix it ($2000+$600 > $2500). I never really know what my vehicle is worth, so I'd have to do the same thing the Dad did in your entertaining anecdote. I would think it over; run some comparisons with autotrader.ca, and decide whether it was worth it. Since I drive a '94 Taurus, I'd be inclined to buy a newer vehicle if it were a close call. I’ve heard the argument “Don’t fix the car if it is worth less than what the repairs cost.”

In this case, if the transmission is worth $2000 in repair bills, and the fixed vehicle would be worth $2500, and the unfixed vehicle was worth $600 to a scrap dealer, it would not make sense to fix it ($2000+$600 > $2500).

I never really know what my vehicle is worth, so I’d have to do the same thing the Dad did in your entertaining anecdote. I would think it over; run some comparisons with autotrader.ca, and decide whether it was worth it. Since I drive a ‘94 Taurus, I’d be inclined to buy a newer vehicle if it were a close call.

]]> By: Jamie http://www.canajunfinances.com/2008/03/31/when-do-you-walk-away-from-an-old-car/#comment-1253 Jamie Tue, 01 Apr 2008 13:36:32 +0000 http://www.canajunfinances.com/2008/03/31/when-do-you-walk-away-from-an-old-car/#comment-1253 I got rid of my old car last year. For me it was pretty simple, the repairs needed to pass inspection added up to at least twice what the car was worth and I fully expected more problems even after the repairs (the car was almost 11 years old). It was just not worth putting any more money into the car. I can only do basic maintenance myself and depend on my mechanic for all repairs. I’ve found that the 10 year mark is about when the cost of maintenance outweighs the value of keeping the car on the road. For me, once a car is 10 years old I either try to sell it then or I set up some kind of rule like “no repairs over $100” and drive it into the ground. I got rid of my old car last year. For me it was pretty simple, the repairs needed to pass inspection added up to at least twice what the car was worth and I fully expected more problems even after the repairs (the car was almost 11 years old). It was just not worth putting any more money into the car. I can only do basic maintenance myself and depend on my mechanic for all repairs. I’ve found that the 10 year mark is about when the cost of maintenance outweighs the value of keeping the car on the road. For me, once a car is 10 years old I either try to sell it then or I set up some kind of rule like “no repairs over $100” and drive it into the ground.

]]> By: Traciatim http://www.canajunfinances.com/2008/03/31/when-do-you-walk-away-from-an-old-car/#comment-1242 Traciatim Mon, 31 Mar 2008 16:40:40 +0000 http://www.canajunfinances.com/2008/03/31/when-do-you-walk-away-from-an-old-car/#comment-1242 I recently went through this with a 6 year old Ford Taurus who's engine failed. I replaced the engine since I couldn't find another car that was around 4 grand that will be as nice as mine. The place I took it to broke both the heat and the air conditioning, and are refusing to fix it. It's really unfortunate that public transport isn't better around here or I probably could have ditched it since we live fairly close to a grocery store. With the way the kids get to school and babysitting, my GF works one town over, we do need a car . . . but trying to keep a ford running is like trying to hold back a tsunami with a roll of paper towel. I recently went through this with a 6 year old Ford Taurus who’s engine failed. I replaced the engine since I couldn’t find another car that was around 4 grand that will be as nice as mine.

The place I took it to broke both the heat and the air conditioning, and are refusing to fix it.

It’s really unfortunate that public transport isn’t better around here or I probably could have ditched it since we live fairly close to a grocery store. With the way the kids get to school and babysitting, my GF works one town over, we do need a car . . . but trying to keep a ford running is like trying to hold back a tsunami with a roll of paper towel.

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