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My Car Is Dying, What To Do

Updated: 04/07/2021 by Financial Samurai 54 Comments

Mercedes 550SL 2013

My car is dying and I need to decide whether to buy a new car, keep it, or buy a old car.

In a rush to get to a meeting, I managed to bash Moose’s right side mirror into a garage side wall and blow the mirror off.  Crap. 

That’s what happens when you have a large car, in a small garage, and do things in a hurry.  This little accident cost $135 to fix and 30 minutes of time.

While I was at the dealer, I used the opportunity to ask several other questions regarding what’s wrong with Moose.  For the past 12 months, there’s been a progressively louder rattling sound every time I drive, or slam the door shut. 

After a little inspection, the service agent said that it looks like my middle muffler connected to my catalytic converter is wearing out and needs changing.  OK, good to know.  “How much?”, I asked.  The service agent said around $1,200-$1,500!  YOWZA!

Related: The Car Sharing Economy Is On The Rise: A Conversation With RelayRides

Car Is Dying – Let Moose Live Or Die?

$1,200 to fix a muffler is ridiculous.  The service agent agreed and recommend I just go to a muffler shop and have them replace just the middle portion.  Parts plus labor will probably equal to $600 instead.  OK, that’s somewhat more reasonable I guess.  I certainly don’t want the muffler to fall off while I’m on my way to Tahoe when it’s dumping snow!

The issue is, Moose is an 11 year old SUV that is worth maybe $4,000.  My main concern is operability and safety, hence the muffler should be fixed.  In addition to the muffler problem, I’ve got three yellow lights on my dashboard that is indicating the traction control, ABS, and hill decent functions are out!  The reality is all three functions are working, it’s just the switchboard fuse that is broken. 

I’ve tested all three and reconfirmed with a mechanic friend of mine.  To fix the switchboard, that will probably cost another $1,200 bucks which is not worth it.  Instead, I just got some black tap and stuck it around the dashboard glass to block the lights so I don’t see them!  Finally, my brakes only have 30% left on them and will likely need replacing in 6 months.  That’s another $600-700 that must be spent.

All in, I will have to spend a minimum of $600 (14% value of the car), and perhaps up to $2,500 (62% value of the car) to get things nice and good again.  Oh yeah, I also got my DMV car registration renewal yesterday to the tune of $109.  Adding everything up, it just doesn’t seem worth it…. or does it?

Related: New Or Used Car? Why I Don’t Plan To Buy Another Car Again

THE ALTERNATIVES

I’ve been thinking about buying a new car for the past couple of years.  It’s just that every time I see a new model, I get bored of it in one year, which means spending tens of thousands of dollars on a car is not a good idea.  When the BMW 335i coupe first came out in 2007 for $47,000 I was determined to have one. 

By the time 2008 rolled around I was bored because I saw the new Audi S5 coupe roll out for the similar price.  And then I got over it because something better kept coming along.  It’s a never ending cycle of desires.

It’s strange, but to cure my car-lust, I go to car dealerships.  Sometimes, I just slide on into one of them babies and inhale the intoxicating new car small as I pretend she’s mine. 

Other times, thanks to very aggressive salespeople, I always respond “Oh, twist my arm and my nipples, OK!” when they ask me to go for a test drive.  By the end of the session, I am so thrilled, that the desire to spend any money on a car dissipates!

So let’s say your car is dying, you are by nature a frugal person, but fulfill the important 1/10th rule and can pay cash for whatever car it is that you desire.  Do you spend 20-62% of the value of the car ($500-$2,500) fixing it to a level which can last another 5 years? 

Or, do you spend perhaps 35-150X that amount and buy a new, safer, more reliable car which has a 4 year, worry-free warranty?  OK fine, I could also spend $20-$30,000 and buy a cheaper car too, but then I’ll really get bored with the car after a year. 

By the way, don’t forget about higher car insurance, crying if you ding your new car, sobbing if your girlfriend or boyfriend dings your new car, and never feeling at ease when you park at the grocery store!

Related: Don’t Let Your Emotions Get The Best Of You When Buying A Car

RECOMMENDATIONS

Lower Your Auto Insurance Costs: Check out AllState online. They have some of the best plans with the lowest rates around due to their lower overhead costs.

It’s worth spending a moment filling out a quote to see if you can save some money. Car insurance is one of the largest ongoing expenses for car owners. Esurance has good driver discounts, and multi-product discounts as well.

In 2017 I ended up finally trading in Moose for a Honda Fit named Rhino! It costs $22 to fill up a tank of gas vs. $80 before.

How to overcome buyer's remorse when purchasing a luxury vehicle

And in 2021, I’m now rolling in a sweet Range Rover Sport with 22″ wheels. I love the car because it’s roomy and safer for transportation my family of four.

Check out my top financial products to help you achieve financial freedom sooner, rather than later. Also check out the best free wealth management tool I use to manage my wealth since 2012.

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Filed Under: Automobiles

Author Bio: I started Financial Samurai in 2009 to help people achieve financial freedom sooner. Financial Samurai is now one of the largest independently run personal finance sites with about one million visitors a month.

I spent 13 years working at Goldman Sachs and Credit Suisse. In 1999, I earned my BA from William & Mary and in 2006, I received my MBA from UC Berkeley.

In 2012, I left banking after negotiating a severance package worth over five years of living expenses. Today, I enjoy being a stay-at-home dad to two young children, playing tennis, and writing.

Order a hardcopy of my new WSJ bestselling book, Buy This, Not That: How To Spend Your Way To Wealth And Freedom. Not only will you build more wealth by reading my book, you’ll also make better choices when faced with some of life’s biggest decisions.

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Comments

  1. Kathryn says

    February 19, 2015 at 5:15 am

    I have two old cars and periodically have had to change parts that have worn out or just broke. I don’t believe that the fact that these things wear out and need to be replaced is reason enough to get a new / newer car (with higher insurance). The major repairs I have had are not earth-shattering: water pump, alternator (both), muffler/exhaust pipe (both), crack in radiator (both), sensor, wiper motor. I also de-carb the engines every couple of years to clean out the gunk. I do the usual maintenance – oil changes, transmission service, annual a/c service, brakes when needed, new tires on each. This is over a span of 23 years. I don’t think any of the new / newer cars out there would have lasted as long as these two that I have now. In fact, my mechanic nephew said that the one car could go over 300k (currently at 128k). I hope to keep them as long as I am able.

    Reply
  2. Kay Lynn @ Bucksome Boomer says

    July 31, 2011 at 11:00 am

    I’m starting to wonder if there’s some kind of curse on older cars belonging to Yakezie members. This is the fourth post I’ve read about someone trying to decide whether to repair the older car or get a new (or newer) car.

    I’d say get a newer used car. It sounds like there’s a lot of work that needs to be done on Moose.

    Reply
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