This is my van. It’s a 2000 model, and it has almost 130,000 miles on it. It’s always been my secret money saving weapon, because keeping your old car until it dies is one of the BEST ways to save money. However, on my way to soccer practice a month ago, the transmission died. I couldn’t believe it. I was hoping to get another 3-4 years out of this car without another major vehicle repair.
However, we have decided to STILL keep the car and try to fix the transmission ourselves. It has NOT been an easy process, as the Odyssey transmission is MUCH more complicated than our Explorer was (we just rebuilt that transmission in the last year as well!). So, two transmissions in one year has been a little much. However, we’re still hoping to fix it ourselves. It’s up on blocks at my grandmother’s, and we ordered a HELM manual (the same manual most service stations use), and while it may take awhile, we’re going to work at it little by little.
In the meantime, I’ve been driving my grandmother’s 15-year-old Taurus. This has been a test of my character, as I miss my sliding doors and the room in my van, but I REFUSE to get another car and have a car payment. I know that other people who know me or work with me may look down on me because I don’t drive a newer car, but at this point, I DON’T CARE! I want to be as DEBT FREE as possible! Here’s why I feel keeping your old car is usually the better choice! Plus, I’m so grateful to have a car to drive!! So many people don’t have family that will lend them a car. Hubby and I have lent our Explorer out to SEVERAL friends (Some of who read this blog too! 🙂 We’re so thankful that my grandmother is willing to share this blessing with us! 🙂
1. NO payment. You are NOT paying interest on your old car (as long as it’s paid off). You’re never going to get out of the debt trap if you keep paying interest on items for which you could pay cash. Plus, you’ll pay less in insurance!
2. An old car is almost ALWAYS cheaper. While it may be an inconvenience to have your car in the shop, and it may seem like mounting car bills make it necessary to purchase new, this isn’t usually the case. If you take all the repair bills from the last two years and divide them by 24 months, you are probably still WAY below a normal car payment.
3. If you HAVE to buy another car, here are some DEBT REDUCING TIPS:
- Pay Cash- This will still save on the intersest.
- If you have to get a loan- get a LOW interest rate.
- Buy a used car. Many dealerships have Certified Used programs that help consumers from getting stuck with a lemon.
4. Cast impatience and vanity into the wind. Whether you’re a big fish in a little pond, a little fish in a little pond, a big fish in a big pond, or a little fish in the end, it doesn’t matter! Also, while it may be frustrating to have things break down, it will be better in the long run financially to keep the car you have!
Paying cash will always get you a lower price at the lot, too. You have what they want. With a loan, there is always the possibility you’ll flake out on the payments. They don’t want the car back. They want $$$.
I would say also if you are unable to pay cash and must borrow to pay, not only get the low interest rate, but pick the SHORTEST payment period. This will save you TONS of money. Plus, all the better to get out of the debt sooner.
We have TWO old cars (1999, 2001) that are still going, and we paid off the first one before paying cash for the second one. So great to not have payments!
I feel the same way and have always keep my old cars until I couldn’t. I and my husband will be married 40 years in Sept. during this time we have own 1 brand new car and it was his 2001 Silveradoo which we still drive. We had to get something because we moved and needed a snow plow and we needed something to last before he retired. I think we have only made payments on used cars 3 or 4 time besides the truck. I also drive a 1995 van and love it. I do have friends that wonders why we do not drive new, because they purchase a new car & truck every 2 years.
I wish I could say the same about keeping my 12 year old car. I just took it to the dealership a couple of days ago and they pretty much told me it was garbage. I need a new engine and a new transmission which totaled up to be about 10g so now I have to buy a new car but being that I have limited savings I may have to just drive it until it completely breaks down. The mechanic told me to stay close to home because once it’s gone, it’s gone, thank goodness I do not live far from my son’s daycare and work even closer. I’ve thought about donating it to purple heart or somewhere like that but I am really going to miss her!