Dilemma...stick with current car or get newer car?

[MR2 Fan]

Here's the really crappy situation I'm in.

I have a 2007 Scion Tc with around 100,000 miles on it. It runs ok, but I know that its going to start needing some maintenance work, possibly clutch replacement, brakes, tires, suspension, etc. It has some bumper damage and it is starting to "feel" its age and may need some other work done.

Also, after being a complete and total moron, I re-financed the car twice, which means I actually still owe over $9,000 for it, and it's worth around $5,000.

As you may have read, I'm trying to move to Japan, hopefully in less than a year.

I've been considering selling it and getting a newer used car, but it depends on if I can tie that into what I owe along with it, maybe $1,500 down payment.

If I don't buy a brand new car, I shouldn't need to worry about it being worth a few grand less as soon as I drive it off the lot.

So I don't know whether I should keep it and just put that money into maintenance, or buy a newer car that's in better shape and re-sell that in a year. I'm thinking a $12,000-$15,000 car, to keep my payments about the same.

Thoughts?

[samoht]

I'd look up "bangernomics" - the art and science of buying the cheapest possible car that will give you at least six months' service, then scrap it and buy another.
Eg http://forums.moneysavingexpert.com/...d.php?t=861921

However, I suspect that this works much better in the UK than the US, where you actually 'use up' your cars by driving more miles. But if you can do something like that, that would be cheapest I suspect.

[MR2 Fan]

the problem is I'd have to pay off the difference I owe in my car if I sell it outright, at least if I get a nearly new car, usually the dealers can "roll" that price into the new loan

[Crazed_Insanity]

Used car rates are higher than new car rates. Plus, if you buy from dealer, surely they have to profit off of you. Unless you find some private party deal, I'd not spend the money. Especially if you are already planning to leave the country soon?

Who knows how long your current car can last without the new clutch, tires, etc. Just take it easy with your current car... and hopefully by the time to leave for Japan, what you owe will actually match the actual value of your car. Save your $1500 downpayment as emergency car repair money. Hopefully you won't have to use it.

[MR2 Fan]

yeah, probably right...meanwhile I'll get an AAA membership, just in case

[novicius]

Even if you win the Craigslist lottery and find a family to buy it from you right now for $7K, you're short $2K. Pay $1500 and you're still short $500. Also, you want to leave the country.

I vote putting that money into maintenance (doing the work yourself as much as possible) to pump up the value and work on paying down the principle to get out from under it until you leave the U.S. Ignore the tired suspension (you're in FL) and body damage, get the brakes working right, look into some passable high mileage tires and save the big bill for the clutch.

It's not the sexy answer but considering where you're sitting, it's the most cost-effective solution. #$0.02

[Crazed_Insanity]

100k miles on a modern car really is nothing. There's really no dilemma. The choice is really simple for the right thing to do. I guess the real dilemma is that you really want a better/newer car, right?

If you can afford it, then by all means just go for it. You probably won't be owning a car in Japan!

Now if you can't really afford it, then you really should not be looking at this problem as a 'dilemma'.

[MR2 Fan]

100k miles on a modern car really is nothing. There's really no dilemma. The choice is really simple for the right thing to do. I guess the real dilemma is that you really want a better/newer car, right?

If you can afford it, then by all means just go for it. You probably won't be owning a car in Japan!

Now if you can't really afford it, then you really should not be looking at this problem as a 'dilemma'.

Well I'm paying $316 a month for the car I have now...which is horrible and I really hate myself for doing the refi twice, I figured I could get a newer car with less mileage for the same monthly rate, the question is after a year or whatever, will I be better off selling a newer car with lower mileage...I think its possible, but ANY time you buy a used car, you don't know how it was abused.

[George]

Ouch.

What I would do pay off the debt and roll the dice with maintenance other than oil changes and tire pressure checks. I think buying and selling cars right now isn't going to help you any.

I know talk is cheap but so is my car - '99 Accord with 209K miles, bought six years ago to replace a '94 Camry with 220K miles.

100K miles is just getting broken in for Honda and Toyotas (and I must assume Scions, too).

[Crazed_Insanity]

Don't not shop for things based solely on monthly payment alone. Surely you'll get dinged by interest rates or obscene # of payments later on. You probably fell into that refi trap by the appealing monthly payments, right? See how you're regretting it now?

Unless you found a great deal on a car and you are reasonably sure that car wasn't abused, stop trying to make shopping decisions based the monthly payment non-sense. Look at it from the total cost perspective. You won't get a great deal getting a used car from a dealer. You also for sure will be raped again by the banks when you transfer your current loan to the newer car.

Lastly, remember in the future that refinancing can only be an option if you can somehow reduce your interest or overall payment. Never refi to get money into your pocket just because you need the money. If you really need the money, sell the damn thing to get the money you need.

I can't believe somebody would lend you money on a car that's worth less than the amount they're giving you. They must've charged you a pretty high interest or made the loan term super long, huh? Hope this type of predatory lending isn't too widespread...