My current car is a 2015 Nissan Versa, a 5-speed manual transmission with 60.5k miles on but in very good condition/ one owner when I bought it in 2020 but it has no frills (my windows have manual cranks, no power door locks, but I do have a radio and A/C LOL!) that I bought for 9k less a 3k downpayment.
This was during COVID and I was desperate to replace my much older clunker that died (blown engine and other problems) that wasn’t worth repairing.
Unfortunately, my credit wasn’t so good at the time so I’m paying a higher interest rate than I’d like and since it was sold “as is” I opted for a 24-month extended warranty and gap insurance, but with my new job, I started more than doubling up on payments to get it paid off early, 2 years early and by the end of this year I hope.
But I get nearly 40 MPG highway and 35 city, and my maintenance costs and insurance are low. My only complaint is that it is so lightweight, it’s not good in the snow or even in heavy rain (although a manual transmission helps, and I have no problem driving a stick shift).
But I have to say I’m an absolute sucker for new cars, with the bells and whistles and that “new car smell” 😊
I figure once I pay this car off and no longer paying $200 a month and saving with my now higher income, if I can keep driving this car for another 2-3 years, assuming no major problems or repairs, I’d be able to put down a substantial down payment on a new car or a newer certified previously owned low mileage car and perhaps with my improved credit, keep my monthly payment below $300.
I’ve found there is a cost/benefit analysis that can come into play with old cars.
Sure, you paid off your car or paid cash for it and have no car payment so that saves a lot of money. But at some point, even with routine maintenance, things, very expensive things sometimes start to need repaired or replaced. If in a year you are spending more $ to keep the car running that what it is worth, it’s not worth it.
“Sure, you paid off your car or paid cash for it and have no car payment so that saves a lot of money. But at some point, even with routine maintenance, things, very expensive things sometimes start to need repaired or replaced. If in a year you are spending more $ to keep the car running that what it is worth, it’s not worth it.”
That is known as: Sunk-Cost relationship.