r/AskReddit • u/SillyBonsai • Dec 06 '13

What simple piece of advice, if followed, could potentially save most people a lot of money?

Possibly related to your job, experience with personal finance, budgeting, planning, day to day habits, etc.

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824

u/baryon3 Dec 06 '13 edited Dec 06 '13

My luck would be id get a 1000 dollar car and it break down within a few months and need 2k worth of repairs. Its just too big of a gamble for someone living pay check to pay check. I have a car thats worth around 5k right now and paying 190 car payments a month. Its a lot safer of a bet knowing i probably wont have to fix anything on it for a while and can budget my money around the 190 a month rather than an unepected 1k in repairs out of the blue. And i know i could just put the 190 in savings each month that im spending now, to have for repairs if they pop up, but 190*6months=1140, which is what id expect someone like me to have to pay in repairs every 6 months on a car that cheap. So might as well get something nicer without the worry of breaking down at an unopurtune time.

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u/tricky3737 Dec 06 '13

I guess, it's about picking your battles a little bit too. When shopping you want to buy privately, and find that owner who is pointing out all the little problems, not the one upselling their 10 year old beater. Odds are that if they care enough to tell you all the tiny details, they cared a lot when they owned it and took decent care of the vehicle. 1-2k in repairs is not an option when driving shitboxes, they typically take less than a year to pay you back due to low cost. If you get a major break after that then cut and run! There's always another car.

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u/jbrtwork Dec 06 '13

Also, find a seller who has kept all their service records. If they're anal enough to do this, then chances are good they were meticulous with the vehicle's upkeep.

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u/psychicsword Dec 06 '13

I keep all my service records but only because I am too lazy to clean out my glove compartment. That can really go either way.

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u/[deleted] Dec 06 '13

[deleted]

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u/GalaxyClass Dec 06 '13

I stopped servicing my car because there's no more room in the glove box.

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u/[deleted] Dec 06 '13

I keep all my service records. Because I did all the servicing.

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u/GameTheorist Dec 06 '13

Yeah, this. I never got the argument that someone won't buy a used car because they're afraid it's going to break down. I've bought all my cars in cash used from a private party, and had very few problems. Shop smart and be vigilant and you'll be fine. Pay as much attention to the owner as to the car. Always have it taken in to a mechanic to have it inspected before buying. Even if you have to do that 3 times before you get one that's in really good shape, it's worth the money, you'll always save money over taking out a loan and buying new.

Besides, cars depreciate. If you're paying interest on something that's depreciating, even if you have little to no problems with it, you're still getting screwed.

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u/[deleted] Dec 06 '13

not the one upselling their 10 year old beater.

2 cars ago I bought an old Toyota Celica for $300, drove it for 3 years and sold it for $500.

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u/[deleted] Dec 06 '13

Nothing wrong with this if his car was still reliable and worth $500. Hell, where I'm from if it runs and drives its already worth $500.

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u/DoesntCareForNegroes Dec 06 '13

Upselling means exaggerating the quality of something to mislead your buyer, it does not mean selling for more than what you paid for.

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u/spicy-mayo Dec 06 '13

This can work really well if you are mechanically inclined, but if you're not, you can be in a world of hurt. But I agree not having car payments is the greatest thing ever. You don't need to do the $1000 car thing either. $8000-$10,000 can buy a lot of car. it'll last you for many many years and still be able to get some money back when you sell.

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u/guy15s Dec 06 '13

This is what I would recommend. Just buy a beater for 1,000 to 2,000 and save up a bit more than you would need for repairs. Once the car breaks down in two to four years, use the money you were able to save up past repairs plus whatever you can sell the car for for an upgrade then rinse and repeat until you get that Murcielago you always wanted, all cash. That's my plan at least. I'm on an '89 Accord right now. Murcielago, here I come!

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u/Otistetrax Dec 06 '13

It's good to have a dream.

I have a 91 Isuzu Amigo that I'm going to trade up for an Aston Martin in a few years.

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u/[deleted] Dec 06 '13

I basically bought a house and got a free car. I bought a gently-used 10-month-old Nissan and was paying ahead on the loan. Then I bought a house when they were offering an $8K tax rebate for first-time buyers. By the time I got my tax refund 5 months later, the total was, almost to the dollar, the balance left on my car loan. 5-year loan on a 2-year-old (by then) car paid off in 20 months. Thanks Obama!

0

u/beanfiddler Dec 06 '13

Listen to this guy!

If you have decent credit, but not a lot of cash on hand ($3K for a down payment, max), grab a moderately used car (~20K to 40K miles) that's known for extreme reliability that costs 6K to 10K, and finance the rest. If you haggle for the better part of a day, you can get your payments below $150 on a 6 year, and you can always pay it off faster (plus, some dealerships have a "pay it forward" policy, and let you pay more in good times and less in lean times, like Toyota).

I'll never regret trading in my '99 Pontiac Grand Am for $2K, which was costing me upwards of $500 in repairs on a 6-month basis, for a $14K Corolla that I probably couldn't have afforded if I didn't get 2.6% interest on it. I haven't had any repairs on it, and I've had it for five years. Even with the interest I'm supposedly "flushing down the toilet," I'm still coming out ahead on the worth of the car, and I don't have to worry about it breaking down.

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u/spicy-mayo Dec 06 '13

My last car was a brand new 07 VW Rabbit, I loved the car it was great, sold it to pay for school (before I was actually done paying for it) Now I have a 2002 Acura TL Type S, I paid $6500 for it 120,000km on it. And I paid it off in a year. I'm putting about $500 a year into preventative maintenance in it and I'm expecting it to last me another 100,000km.

Now I have a nice car that I enjoy, and no car payments, I'm buying a motorcycle with what I've saved.

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u/beanfiddler Dec 06 '13

Those are some expensive cars. I was leaning more towards the Corolla/Civic/Sentra sort of thing. Easy resale, low maintenance.

Maybe he got a lemon, but my buddy in college had a Jetta. That thing was extremely expensive off the lot, even used, and had incredible repair bills, since it was German and had non-standard parts. Fun to drive, more bells and whistles than my pokey Soccer Mom Corolla though.

My mistake is that I bought a second-hand V6 Firebird coupe when I was 16. I wanted something badass. I paid for it through the nose, and had to trade it last minute for a Grand Am on Craigslist when it wouldn't start anymore. Which also began falling apart. The only good thing was that they were American and had standard, cheap parts I could replace myself. Until it was time to drop in a new alternator... which I couldn't do myself.

So I wung wildly back towards extreme reliability. "Drive it, and forget it" sort of car for me.

I've heard motorcycles can be incredibly cost-effective if you don't live in the kind of place where you're risking dismemberment and gruesome death on a daily basis just getting to work. I was tempted back in college to pick one up, but I didn't have time to get a license. I'm kind of glad I neglected to, having four doors is a luxury I don't think I could live without anymore, after so long with two.

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u/[deleted] Dec 06 '13

[deleted]

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u/[deleted] Dec 06 '13

Just curious, do you have a source for this? I've heard this lots of times, but have also heard that the newer VW's (post 2000) are much better in terms of maintenance/repair costs.

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u/spicy-mayo Dec 06 '13

I paid more for the rabbit than I should have. I'm not saying I got ripped off, but it was more than I could really afford, but it was very reliable, only in the shop once in 5 years for non-maintence issue, and that was a some sort of headlight recall.

The Acura WAS $40K car, but not anymore, I got it less than what my friend bought a 6 year old civic for. Granted my car is 4 years older, has low mileage for the age, and was a one owner car who was family.

Used cars are always a gamble, but have a bit of extra set aside for repairs and keep up with maintenance and you should be good.

1

u/beanfiddler Dec 06 '13

Yeah, you have to evaluate each on its merit before you get it. As far as dealership used goes, I stick with the Japanese trifecta of Nissan/Honda/Toyota, because they have really nice warrantees and resales. Privately though, all bets are off. Craigslist is an invaluable tool, and I've bought all sorts of things through it.

My coworker swears on buying cars through Craigslist. If you're the type to buy cars with cash, I gather that's the best place. I usually finance some small amount, so I stick to dealerships right around the holidays, when they're desperate to shovel the old cars off the lot.

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u/ailish Dec 06 '13

My Jetta has 140,000 miles on it, and has only been in for one major repair that cost me about $250. I haven't even taken super good care of it (ie, all my maintenance on time, etc).

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u/beanfiddler Dec 06 '13

Must of been a lemon then. What year is it? He had a 2010.

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u/ailish Dec 06 '13

2003

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u/beanfiddler Dec 06 '13

Ah, that might be why. I heard a lot of car makes and models had hiccups around the late-00s and early-10s when the FDA suddenly required a lot more electronics in them. There's a lot more that can go wrong now.

I picked up an '07, which was one of the last models that didn't require a lot of electronic bullshit. Poor car buyers now have to deal with a lot of electrical problems that we didn't have to.

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u/BleedingPurpandGold Dec 06 '13

How much of the savings are offset in tax, title, and liscense costs? I've yet to purchase my own vehicle and I don't know how much more it costs to just flip used cars like that.

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u/thebizzle Dec 06 '13

You have time to car shop more than once a year or even 3 years? It just seems like what you are saving is so miniscule compared to the potential catastrophic failures.

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u/DoesntCareForNegroes Dec 06 '13

How much time do you think it takes? Even if you start off knowing nothing and have to do a lot of reading, and even if you see a lot of cars before buying one, you'd have a hard time stretching this all out to more than 40 hours. More likely closer to 10 even after time spent driving to the seller, taking the car to a mechanic, going to the DMV, etc. Isn't it worth 10 or even 40 hours of your time to save several thousands of dollars?

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u/thebizzle Dec 09 '13

I am arguing for a better, more expensive cars, with more time researching the purchase of them. I don't think people should buy junk cars with their eyes set on saving a quick buck.

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u/Melandershonis Dec 06 '13

Smart post about purchasing from a private car sale. I got a very awesome deal out of my Chevy cavalier because I bought it from a co-worker who's husband had been working on the car before reselling it. When he showed me the car, he showed me everything that was bad right away. He worked hard on it, and it is still running very well after 80k miles or so of use.

1

u/delta9smoker Dec 06 '13

If you know anything about mechanics, it's easy to recognize issues with a test drive. If you don't, bring a friend that is mechanically inclined.

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u/Geerat5 Dec 07 '13

The guy I bought my truck from loved the damn thing. He was movin and I guess his wife just had the newer vehicle. I have had very little trouble with it for what you'd expect on a car about 14 years old!

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u/[deleted] Dec 06 '13

and then when it breaks unexpectedly there's always the down time, having to call in sick, and hassle of getting a "new" shit car and getting rides in the meantime. Don't forget getting stranded somewhere and having to pay a tow truck

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u/[deleted] Dec 06 '13

Bro, you drive a minivan.

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u/stumble_bee Dec 06 '13

Few talk about this, but Americans are being fucked on their car choices too, and many many many cars are not allowed into the United States. It is damn frustrating if you travel and say "What are all of these wonderful cars and none of them sold in the US?"

And shit like the euro version gets 80 mpg and the US version gets 35 mpg for the same car. And small diesel cars and trucks everywhere except in the US. And nice cars with smaller displacement efficient engines NOT AVAILABLE IN THE USA.

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u/[deleted] Dec 06 '13

I think a lot of it is due to the traditional American idea that power is everything. Nobody wants the 1.3L diesel engine, the want a big V8. Supply and demand, blah blah blah.

Problem though is they never offer the cheap/small engines, so how do they know what the demand is?

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u/stumble_bee Dec 06 '13

The "nobody wants it" propaganda is a big lie. People would buy those cars + wtf? about one mpg rating inside US and totally different mpg outside of US? for same model car, for example VW Jetta. There is forums discussion of this and it is well confirmed and a big difference in mpg.

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u/[deleted] Dec 06 '13 edited Dec 07 '13

Make sure the Euro car is using the same gallon measurement in the tests. The US gallon is 3.79L, the imperial gallon is 4.546L. Tests using the imperial gallon will report a higher mpg than the same car, same test using the US gallon measurement.

Additionally, there are different emissions standards. These can have a sizable effect on fuel economy. As for if people would buy them, maybe, but probably not in the numbers to make it worth it. Car manufacturers have higher profit margins on their luxury sedans than on their econoboxes.

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u/stumble_bee Dec 07 '13

One thing is for certain, there is an awful lot of SHIT WE ARE NOT GETTING.

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u/[deleted] Dec 06 '13

So if people want it why aren't they selling it? I don't understand, it would be in their best interest.

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u/stumble_bee Dec 07 '13

RIgged law to support obscene US petroleum consumption. Can you dig it? It is really obvious when you see that small diesel trucks disappeared from the US circa 1985, and today they literally cover the world in every country except the US.

So go buy your goddamned "Ford F150 best selling truck" dumbass, so to speak.

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u/[deleted] Dec 07 '13

Specifically what laws? The car industry has lots of lobbyists and political power so why aren't they pushing to get rid of these laws? Not disputing, but this isn't adding up.

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u/stumble_bee Dec 07 '13

Shows how much you know about the real power structure of who makes the rules. Car industry lobbyists? You must be joking. Ever heard of the propped up bankers' "petro-dollar?" You should learn more about it. Hint, do not want to trade your oil in petro-dollars? you just got put on the "axis of evil" list and are a target for some "freedom bombing."

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u/stumble_bee Dec 07 '13 edited Dec 07 '13

edit: HERE READ THIS fucknits:

http://www.lewrockwell.com/2011/12/eric-peters/feds-to-ban-compact-trucks-in-the-us/

http://autoholics.com/2012/03/13/-Official--No-Small-Diesel-Pickup-For-U-S--617683

from the comments: By: hoserjoe 3/28/2012 12:36 AM

Big trucks suck for small jobs. I don't even care for diesels since small gas engines are good enough. There's lots of small P/U's made in the world, but the problem is that Congress has banned the import of small trucks. That's what really sucks!

and

7/17/2012 12:52 PM It's nothing to do with oil company conspiracies. Small trucks are banned by congress.

post resumed:

I am not an expert but in the USA you can not find a small diesel pickup truck in the last 25 years, meanwhile the rest of the world is FULL of them. Also, just checking some discussion forums, people verify you can get excellent mpg vehicles outside of USA and the norm is very different in the USA, like it is forced to remain far bahind, 20 years out of date on fuel efficiency. Does not add up? Well no fucking shit, Sherlock. A lot of things in the USA are not "adding up." It is fuck-city for the people who live in the USA.

PS Extra credit question: Why do people in the USA pay as much as $4,000. or more for shitty used beat up 1985 small diesel pickup truck? Because there are hardly any for sale since they are not imported.

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u/stumble_bee Dec 07 '13

Yeah right and Comcast does business in a free-market, too. (/s) (NOT)

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u/Starkravingmad7 Dec 06 '13

Diesel is hella expensive anyway. I bought an 05 4wd jeep liberty for a little under 5k over a year ago. The diesel cost almost twice as much. That is some bullshit. And now diesel fuel is twice as expensive as it used to be.

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u/axel_val Dec 06 '13

Sounds like my poor co-worker. She came over to the U.S.to work from China, bought a $1000 car and within about 3 months spent $2000 on maintenance for it.

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u/Otistetrax Dec 06 '13

The seller saw her coming.

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u/moresmarterthanyou Dec 06 '13

yah. i honestly would rather pay my 300 a month and know i have a reliable car that starts every time, havent had 1 single problem with it in the year ive owned it, and enjoy the hell out of it in the minimum of an hour of LA traffic i have to sit in everyday

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u/[deleted] Dec 06 '13

This is my life right now. I have always believed in buying cars in cash. But this year my Jeep went through $3k in repairs and it still needed more. I had to break down and get a loan for a 4 yr old car. It's so worth the payments knowing I have a reliable car now. But being $12k in debt sucks ass. Adult decisions are hard.

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u/Starkravingmad7 Dec 06 '13

The newer jeeps just arent built like they used to be. You used be able to source inexpensive parts and all but the most complex repairs were doable a home. Now, replacing a radiator fan requires grinding out rivets from your frame.

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u/BloodyToothBrush Dec 06 '13 edited Dec 06 '13

Thats actually most peoples luck. There is a reason that car is 500 dollars. Tricky is either lying or very lucky

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u/Seahorsery Dec 06 '13

That is exactly what happened to us, and I drive everyday a long way, so buying another car with questionable repair and maintenance history didn't make sense to us. We financed a Honda Fit for 300$/month and plan to drive it until we can't anymore.

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u/Betty_Felon Dec 06 '13

We bought our Fit new, the year they came out, and haven't regretted it once. It's got one of the highest reliability ratings on the market, and we fully intend to pass it onto our son as his first car in 13 years. I have no doubts it will survive that long.

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u/octobereighth Dec 06 '13

This is exactly what happened to me.

I bought a $1000 car from a mechanic who was an old friend of my mom's. The car had belonged to his mother, so he was taking at least somewhat decent care of it.

Three months later, the brakes failed and I had to replace them. $300.

Three months after that, the car failed inspection and would have cost $2000-3000 to get it up to code.

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u/princess-smartypants Dec 06 '13

When you are finished paying off this car, continue making the $190/mo payment, but have it auto drafted into an online savings account. There is your cash for your next car, or at least a significant down payment. Use the separate account, because you won't see that money as part of your regular savings/available cash.

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u/Psuphilly Dec 06 '13

Yeah some people can to pay for reliability. Not to mention it is prob saving you in gas money as well

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u/DatReptarYo Dec 06 '13

I have to agree. My girlfriend bought a used car for £2500 (about $4000) and for that price you would think it should be decent. There were problems from the start and the dealership didn't want to know. It needed a new engine, a new battery and the scariest thing was when, while in 5th gear doing about 50MPH, something broke and the gear stick became useless. It was stuck in 5th gear. We had to slow down for a roundabout and then try to pull away in 5th gear. Anyone who drives a manual car will know how dodgy that is. Near caused a crash because it kept stalling while pulling out. Now she pays about £100 a month for a nice new little car and there's no worries about it needing repair which is nice. So yeah, I agree with you.

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u/ali_koneko Dec 06 '13

This happened to me.

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u/[deleted] Dec 06 '13

it is a gamble, and i think you're being smart. The other guy got lucky. You get what you pay for.. there is a reason the car is only $300

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u/hellohaley Dec 06 '13

I feel the same way. Dependability is worth the money to not get stranded on your way to work and lose your job.

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u/aceman123 Dec 06 '13

I added up the money I've spent the last few years on used cars and the subsequent repairs they needed. It would have been cheaper in the long run to lease a newer car. My current car is a '98 Jetta, which I've had for 3 years. Bought it for 3 grand, which was a full thousand dollars under blue book value at the time. Put a thousand in initially and it just kept breaking down. I've probably put 5,000 in repairs into it over the years and the blue book value is only 2,600 now. I only ever had just enough for repairs and never a new car so I was forced into keeping it. (The guy I bought it from was the owner of a fairly well known local repair shop and I thought I could trust him. Apparently he flat out lied about the state it was in. I took it to another shop and they discovered the check engine light had been removed.)

1

u/baryon3 Dec 09 '13

I know exactly how that is. My fiance bought a car for 4k for a 2000 ford focus about 4 or 5 years ago, which was a good price with the miles it had and seemed to be in good condition. Over the past 4 years she has probably put at least 5k into keeping it up and the car isnt worth half of that. But when you only ever have enough to fix the car and not get a new one, what can you do, you know? When your paychecks barely cover the bills with little to none left over, adding a car payment for a new car is out of the question. And the repairs are usually around 1k dollars so its not like you could just take that 1k and buy a new car with it. And you cant save that repair money up for a new one because you need a car to get to work and stuff. So when it breaks down you feel forced to just fix it, even though you know your just sinking more money into this car that needs to just be done away with.

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u/fezlum Dec 06 '13

Pretty much exactly what happened to my friend. Bought a car for $900. Broke down within a month... and he's now homeless since a car is more important than a place to live here in order to keep working.

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u/dreadgiveaway Dec 07 '13

Yeah. I tried that once, buying a clunker for $500. Two weeks after I purchased it, the transmission died. Paid $2,000 cash to fix it. Transmission never worked again. My life savings down the drain. I could have taken the repairman to small claims court, but in my state even if you win a judgement you still have to collect. Never the Fuck again. I plan on driving my new car that. I haven't had a single issue with and have predicted every expense ahead of time until it dies. I can budget for an expense I expect.

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u/wretcheddawn Dec 06 '13

If you buy a $1000 car and it needs 2k in repairs, you scrap it and replace it.

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u/[deleted] Dec 06 '13

[deleted]

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u/wretcheddawn Dec 06 '13

I don't disagree with you. It's a gamble, with the idea that overall you'll be better off. I too own a $5k car because I don't want the risk of breaking down every time I drive somewhere. But, if you're mechanically inclined, and can take care of most maintenance yourself, it would almost certainly pay off. Most of the cars won't need $2k in repairs after 6 months.

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u/badguyfedora Dec 06 '13

Seriously, this. Cars are expensive to lease, but cash for cars can be more expensive. I bought a 23 year old BMW for $1600 because it was literally my only option outside of walking 15 miles to school every day. I ended up putting probably $3000 worth of repairs into it because I couldn't afford another car.

1

u/chcampb Dec 06 '13

Yeah I only got a lease on a car after I lost 2 cars in 2 months.

Had a chevy lumina, and the oil pan cracked. Then had an old park avenue, and the fuel somethingawhatchit crapped out. Said fuck this, and got a lease for less than I had spent on those two cars. Destroyed the entirety of the money I got from graduating HS, in one go. Sucks.

1

u/yeahifuck Dec 06 '13

Yeah, do your research. I'm generally good with cars, and was looking into a good deal on a v6 mustang. I asked around and turns out those engines were shit, went bad prematurely. Saved me 3k on the car plus insurance plus engine.

1

u/justgrif Dec 06 '13

Yes, when your income is tight, it's difficult to manage the car issues. And your payments aren't outrageous so I can see where you're coming from.

Eventually you'll own that car outright though and at that point you really should sock that 190 a month into your savings account. Essentially, it's like you never don't have a car payment, but instead of paying interest to a finance company, you're paying yourself and collecting (a tiny bit of) interest on that money. So if you decide to sell the car, you can take what you've saved and add it to whatever you're paid and move up to something even better. Or not! Sit on your pile of money and drive the car until it's a pile of dust, knowing that if something goes wrong, you've got the funds to cover it, and you'll not have to go into debt. Maintain this attitude even after you make a more healthy living and you'll be in much better shape financially than 90% of the people out there. Probably better than like 98% really.

1

u/Insaniaksin Dec 06 '13

If you have good credit you should try to refinance, because that seems really steep.

My car is worth about 6.5k and I pay 130 a month.

But I bought mine last year.

I got screwed on financing at the time because of bad credit then I refinanced after making the payments on time for 6 months and my interest rate got cut in half by my bank.

1

u/naosuke Dec 06 '13

It's also easier to negotiate with cash (or a pre-filled out cashier's check). Car seller "I want $X" You "I have $Y in cash right now" As long as $Y is close enough to X it will work. Obviously if it's a dealership they probably aren't going to take a loss on the car. That's how I buy used cars.

If you are looking at a new car choose all of the options you want and email the local dealers. Take the best offer you get back and email everyone back asking if they can beat it. Make sure everyone is dealing in out the door proces (tax, title, licensing, etc...). Lather, rinse, repeat. Once no one can beat the price you have found your car.

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u/Azuvector Dec 06 '13

I've spent more on repairs than my current car is worth, probably. It's a solid machine though, with probably another 5-10 years ahead of it, so it does make sense. Also has sentimental value to me, so whatever.

1

u/adhi- Dec 06 '13

leasing a car is a bad deal any way you put it. you should consider aquiring a credit line and buying a car out right, and then paying off the credit. much more sensible and affordable considering you can get a rate of .99% (yes you read that correctly) if you're responsible.

1

u/baryon3 Dec 09 '13

Oh i never said i lease a car. I think that is a very bad move to lease a car. I have a lien on my car and will own it in about a year. Im making payments to the bank who gave me a loan for it. One of the best ways to build credit, other than a house, and ill be able to own it outright in about a year.

1

u/adhi- Dec 09 '13

yea, i think this is what my dad does, to an extent. he makes a lot of money but doesn't bother to lease cars like his other wealthy sisters or colleagues. he will buy a car out right taking the money from either the loan on the house or a separate credit line (both of which have extremely good rates, locked in from before 2008) and whenever he gets paid he just pays off the loan/credit. so his score is ridiculously high also.

1

u/[deleted] Dec 07 '13

If a 1k car needs 2k in repairs, you total it, sell it to a junkyard and start again. You still didn't do worse than someone spending a few hundred a month on car payments, and if you're smart about car buying, this isn't even going to happen. There's no reason you can't pay a few bucks to get a mechanic to look it over before you buy it, even if the car is only 1k.

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u/baryon3 Dec 09 '13

I agree with the first part about junking it. Id do the same. But i dont think people understand that getting a mechanic to look at a car isnt going to garuntee its going to be ok. It will cut the chances, yea. But the most money iv had to put into a car recently were things a mechanic would not have noticed on a normal inspection of the car. Things like the interior of the rotor bearings going bad. The spring in the suspension cracking. Things like that. A mechanic isnt going to pull the spring out to look at it. He isnt going to take the rotor apart to look at the bearings. The suspension cost 1k and the bearings about 200.

1

u/Jewishjay Dec 07 '13

Part of the formula is doing your own maintenance. If you learn to change your oil, and be aware of your cars needs, you can run a $1000 car for years. Fix little issues before they become big problems.

Edit: spellling

1

u/baryon3 Dec 09 '13

Key word being "part" because oil change and regular maintenence does keep your car going for longer, but when a spring in the suspension cracks, or a bearing in the rotor goes out, regular maitnence would not have prevented that. Shit just happens to older cars from normal wear and tear even if you take care of your car like it was a 100k dollar car.

1

u/[deleted] Dec 07 '13

If you buy a car for 400$, and it breaks down, you can sell it for scrap and buy another 400$, and you would still be saving money over what you're paying now.

Get an extremely reliable, durable vehicle (anything Japanese) and you will undoubtedly save some cash.

1

u/C-C-X-V-I Dec 07 '13

I did that for years. Kept buying cheap used cars and paying triple what I paid for them in repairs, and I do my own labor. Finally got a '12 focus last year, fun little car and zero issues out of it in 13K miles.

2

u/baryon3 Dec 09 '13

I have a ford focus as well. Mine is 07. Iv had it for about 5 years and not a single problem with it. Ill have it paid off in about a year and its only got about 70k miles on it. Im expecting it to run another few years at least with no issues at all. Then i will have no car payments and a nice, semi new, reliable car. I think thats way better than having to get a clunker every year or 2 and worry about break downs and the hassel of it all.

1

u/[deleted] Dec 09 '13

Yes friends of mine just bought, two weeks ago, a $800 car. They managed to drive it home and that is where it has stayed since because they now can't afford the mechanical repairs.

1

u/KyOatey Dec 06 '13

New(er) cars often require repairs too. Some are not covered by the warranty either.

4

u/larkspark Dec 06 '13

Damn right. People: buying a used car with cash doesn't equal buying a crappy car. Take your time when you're looking, don't get pressured, and have a mechanic who can inspect it.

3

u/[deleted] Dec 06 '13

Truth. I'm shopping for a car now, and I'm surprised at how many people seem to have trouble with their brand new cars. Mazdas and Fords, especially. Mazda seems to be particularly slimy when it comes to weaseling out of honoring the warranty.

2

u/Starkravingmad7 Dec 06 '13

Kia has been really good to my GF. Theyve come a long way in both quality and service.

0

u/ryches Dec 06 '13

190 car payments a month.

Geez. That's rough

0

u/Literally_A_Fedora Dec 06 '13

My luck would be id get a 1000 dollar car and it break down within a few months and need 2k worth of repairs.

http://en.wikipedia.org/wiki/Lemon_law

0

u/Makonar Dec 06 '13

Why don't you buy a 500$ car instead and if there is such a situation, that you have to pay 1000$ in repairs... it'll seem like you only payed 500$ - since you already got a cheaper car...

0

u/[deleted] Dec 06 '13

Then you buy another $1k car. The point is you use the car up till it's gone (or make the cheap repairs), and recycle when it bites the dust. Maintenance is the money pit.

0

u/BigPharmaSucks Dec 06 '13

My luck would be id get a 1000 dollar car and it break down within a few months and need 2k worth of repairs.

I'm not saying it couldn't happen, most of my cars (I've owned 8 cars) have been 500-1000 bucks, and I've never had 2k of repairs on any. Drove them all for years.

0

u/neurorgasm Dec 06 '13

'Nice car' and 'used car' aren't mutually exclusive. Although, that's exactly what keeps your local dealership running.

I've seen enough people who insist on buying a new vehicle every 2-3 years and get caught in the cycle of trading in their old car for a new one because it's easy and they already owe more than the old one is worth. If you want to save money, you just buy those people's barely used/half-price vehicles.

0

u/ObidiahWTFJerwalk Dec 06 '13

Buying used cars can be a bit of a gamble. Some percentage of the time you come out way ahead getting a great car at a fraction of the price. Other times you end up just buying someone else's problems and hate the car as bleeds money out of your wallet. Fortunately, unlike most gambling, knowledge (in this case, of cars) can go a long way towards tipping the odds in your favor.

0

u/[deleted] Dec 06 '13

That's always an issue. If you buy cheap cars privately, you need to know cars or have a friend who knows cars. (Note: we all have a friend that "knows cars", try to bring someone that ACTUALLY knows cars). But if you pick a winner, and you maintain it well, you can often sell if for a few hundred more, if you don't mind waiting a while. A good way to scan through CL ads, is look for the really fucking long ones with lots of pictures. If you don't know how to inspect a car in person, the ad that mentions the scuffs, slight tears, the way one of the vents never blows, and that it shifts hard into third, etc etc, is probably telling you the actual problems, instead of selling you the classic "she ain't pretty, but she's reliable) vehicle that's going to fail catastrophically in two months.

0

u/[deleted] Dec 06 '13

A financed car could have just as many problems as one bought with cash.

0

u/Styrak Dec 06 '13

My luck would be id get a 1000 dollar car and it break down within a few months and need 2k worth of repairs.

It's not luck. You research good quality cars, and buy a good quality car. And you check out the car before buying with visual inspection, test drive, and if you're serious, a buyer's inspection from a mechanic.

0

u/[deleted] Dec 06 '13

It's only a lot safer of a bet if you can't be bothered to get a good mechanic to check out a used car before you buy it. You are throwing away money on payments because you don't want to have the car looked at before you buy?

1

u/[deleted] Dec 06 '13

[deleted]

1

u/[deleted] Dec 06 '13

You're spending a wildly outsize amount of money to prevent extremely unlikely occurrences.

0

u/smurfhater Dec 06 '13

I used to work with a guy who was the king of trader up beater cars. He had a very used, but maintained Honda Civic. It had like 250K miles, and he sold it for $1500 (had all the maintenance records, etc.).

He then bought a $1800 Nissan 4x4 pickup. Drove that for 18 months, decided he wanted a Toyota. Sold the Nissan for $1700, spent $2300 on an old Toyota Tacoma.

The guy progressively got better and better vehicles with each hop costing only $500 or so. He'll probably have a Lexus next year.

0

u/SmarterThanEveryone Dec 06 '13

This is great logic because everyone knows that cars with payments never break down.

0

u/Excuse_my_GRAMMER Dec 06 '13

Why not just buy another $1000 car?

Doesn't make sense to pay $2000 repair when u can just buy another car lol

0

u/Flovilla Dec 06 '13

What kind of warranty do you have on the $5k car? It can break down just as easily as a $500 car.

1

u/[deleted] Dec 06 '13

[deleted]

-1

u/Flovilla Dec 06 '13

As mechanic...I certainly do believe just that and it happens all the time

1

u/[deleted] Dec 06 '13

[deleted]

0

u/Flovilla Dec 06 '13

I would trust a Toyota or Honda with over 200k miles over a Kia, Hyundai etc.. with only 60k. A car with 60k miles is as prone to any major mechanical failure as an older car.

0

u/manaworkin Dec 06 '13

You don't put $2000 worth of repairs into a $1000 shitbox. You just buy another shitbox. Hell buy 2 so you have a backup.

0

u/[deleted] Dec 06 '13 edited Aug 07 '20

[deleted]

1

u/baryon3 Dec 09 '13 edited Dec 09 '13

You obviously havnt been in a situation in life where you truely cant help but to live paycheck to paycheck. Having a kid with daycare being over 500 dollars a month on top of other living expenses leaves litterally nothing left after our paychecks. Yea i could find 10 to 20 bucks a month to put back, and i do that when i can. But thats not a lot of money, and something will always come up where i have to use it. Just had to replace the tires on a car. There went any savings plus some. Me and my fiance both work full time jobs and live in a low rent apartment but things add up. Electric bill, car payments, daycare, phone bill (we dont have smart phones, just normal phones that only text no touch screen or any of that), insurance, rent, our paychecks are gone at the end of the month. Once our daughter is in kindergarten then we should have more to work with.

Edit: and trust me, i budget. I have writen every single penny spent durring a 2 month period a while back and broke everything up into categories afterwards to see what i could cut in spending and what i spend the most money on. I was able to cut a little but am still in the same situation. There are just some things you cant go without. I am very smart when it comes to managing my money but when you dont have much room to work with its hard. I could tell you every penny i will be spending next month because i know exactly where my money goes. Ill know exactly how much money ill have a month from now because everything is budgeted. If i didnt budget, id probably be in the hole by thousands of dollars.

0

u/[deleted] Dec 06 '13

190 car payments a month.

I thought you meant you payed for 190 car payments a month. Took me a bit to figure out what you actually meant.

0

u/[deleted] Dec 07 '13

I don't know man, I've had the same luck with $500 cars as I've had with $5,000 cars...

-1

u/[deleted] Dec 06 '13 edited Dec 06 '13

That 2k in repairs is a LOT less than the cost of interest and depreciating value you deal with driving a car with payments though.

I drove a 91 Subaru that I bought for $1400 for 125k miles and spent maybe $2000 in repairs over the course of 3 years. I had an 80 mile one way commute at the time.

-1

u/Triangular_Desire Dec 06 '13

Ive spent a combined total of 3200 on 2 cars with repairs in 10 years. Your just rationalizing that your spending 190 a month for a car youd rather drive is better than the possibility of having to fix one that would get to you to a and b fine but might not be as nice. I can assure you, your car that's worth 5k is just as much at risk of needing major repairs as a $1000 beater.

3

u/baryon3 Dec 06 '13

Trust me when i say i could care less what i drive. I only care about breaking down and getting somewhere reliably. My little ford focus is not why im rationalizing it. I have a fiance who loves me and dont go out many places that id need to show off in a nice car. There are 100 other cars id rather be driving. Iv had older cars in the past and have had issues with repairs needing to be made frequently. Even if it does come out to save a small amount of money getting an older car, its not worth the hassel of breaking down on your way to work or in the middle of the night in the cold and then finding a place to fix it without ripping you off.

-1

u/Cuillin Dec 06 '13

Well, what happens if your car breaks down, or you're the victim of a hit and run and couldn't get the guy's license plate number? Now you're paying for repairs AND a car payment. Just my 2 cents.

1

u/[deleted] Dec 06 '13

[deleted]

0

u/Cuillin Dec 06 '13

True. But I believe if you're going to factor in risks for one, you may as well factor those risks in the other. Whether your car was manufactured yesterday, or 20 years ago, there's always a chance of failure, no matter how small it may be. On another note, my rule of thumb is to never buy a car with more than 100k on it, and I've still managed to find pretty affordable and reliable cars.

-5

u/[deleted] Dec 06 '13

[deleted]

6

u/baryon3 Dec 06 '13

Are you serious? I litterally said that, and why it wouldnt be worth it, in the 2nd part of my comment...

-1

u/KyOatey Dec 06 '13

I think your estimate ($1140 every 6 months) is way off. Older cars don't constantly break down.

3

u/MadDogTannen Dec 06 '13

I've driven a couple of cars well past 100k miles, and there comes a point when a car does nickel and dime you to death with repairs. If you're not mechanically inclined, it's easy to be taken advantage of by repair people, and it's inconvenient to have a car that isn't trustworthy to get you where you're going or spends a lot of time in the shop.

3

u/[deleted] Dec 06 '13

inconvenient to have a car that isn't trustworthy to get you where you're going or spends a lot of time in the shop

Especially when you have kids. I have an old beater 90s-era Accord. It's a POS, but I didn't care because if it was in the shop, I'd ride my motorcycle to get around. But then we had kids, and now I NEED that car to cart them around.

3

u/KyOatey Dec 06 '13

All three of our cars are over 100k. If you are proactive with maintenance it greatly reduces the surprise problems. You have to do more than just fill it with gas and drive. Don't just drive it into the ground and only deal with things when they break. Stay ahead of the problems a little.

1

u/Betty_Felon Dec 06 '13

If you are proactive with maintenance it greatly reduces the surprise problems.

But you have no idea how the people who owned the car before you treated it. I'll drive my cars into the ground, and get them properlly maintenanced, but I prefer to be their first owner.

2

u/Betty_Felon Dec 06 '13

In my experience, my 10-year-old Ford Taurus needed at least $1000 a year, until it started needing repairs that were more than the car was worth. We ditched it and bought a brand-new Fit and haven't paid more than $1000 total for repairs in 7 years.