Trigger warning:  You may become insanely, uncontrollably jealous of me after learning the following:
I have a 2002 Dodge Durango with 160k miles.

It’s still going strong. It’s only a little bit ugly.  But I keep it maintained and haven’t given up on the ol’ gal; here’s why.

When contemplating whether to invest in some type of major fix or repair, it seems most of the advice you’ll invariably receive will revolve around whether the investment is “worth it” relative to the value of the car. I say that is not a valid argument.

A better argument would be: is the investment worth it relative to the value of a replacement car that you would consider?

What I mean is, sure, the blue book value of my beloved ‘Rango could be worth $3,000 – $4,000, and on the surface making a repair that costs half the vehicle’s value seems about as wise as taking that Nigerian price up on his offer.

For example, a transmission replacement is probably in my future; let’s call it a $1,400 investment.  If we break that down into a monthly installment, it’s really only $117/month. What kind of car can you get for $117 month? Definitely only a used one, and probably a stinker.

Ran when parked.  A/C ice cold.  All records.

Do you want to gamble on someone else’s worn out old car, or stick with yours, the one you are familiar with? If everything was in working order, do you enjoy your car, at least a little? Is it safe? Are there less than 2 rodent families living in it? Can you explain most of the smells? Are there any things you wish your car had that you can add for a few bucks?  If you can answer most of these in the affirmative, it probably makes more sense to fix it.

Huh?

To get a car with a statistically significant greater probability of reliability, you are looking at a (boring and basic) brand new car, some of which are as cheap as $15,000 or ~ $270/month, or a fairly new, low mileage used car around the same price range – as a starting point.

So technically, from a purely financial perspective, it would only start to make sense to buy a new car once your average monthly repair bills exceed $270; or in other words, when you find yourself spending more than $3,000 on repairs each year, regardless of the present value of your car. That doesn’t even consider the fact that if you were to buy a more valuable car, your insurance and taxes would increase as well.  If you won’t settle for less and will only consider replacing your beater with a pricier, more desirable car (good on ya’), then just swap the numbers and do the math – the practical point of replacement is even higher, so just buckle in a little longer.

Most of the time, when you hear someone say “I don’t know if I should repair it, the car just isn’t worth that much…”, they have already decided that they wish to buy a new car, and are just seeking validation, or a way to rationalize the purchase to themselves and/or others.

Whether you do the maintenance yourself or not, if you are like me, you may even start looking at repairs as excuses to add better quality, higher performance replacement parts or supplements that make the ride more enjoyable, further enhancing the repair vs. replace argument.

Of course, your mileage may vary, so adjust the replacement target based on realistic expectations for yourself.  Personally, my bar is at $2,000/year. If I ever have to spend more than that to keep it on the road, then I will get a new (to me) car. But thats because I’m blending the financially-pragmatic approach above with the cold, hard truth that deep down I’m always looking for the next ride.

Which brings me to the other perfectly rational and 100% acceptable reason why you’d buy a new car:

Because you want to, damnit!

Plain and simple.  Life is too short to drive a car that doesn’t make you smile. Just do it already.

Everyone spends on what they truly enjoy, and for good reason. Some people enjoy art.  Others enjoy high fashion.  But those things are miserable, so don’t be like those people – get a fun car instead.

Sure its a big investment, but you use few other consumer goods as frequently or as extensively. And few others are as easy and lucrative to liquidate if you do happen to find yourself in a bind (Note: I am not implying that a car is an asset.  Unless you’ve been wise with your Porsche investments…).  Try hawking your toaster the next time you find yourself in a pinch and see how far that gets you.

Again, be real with yourself.  I decree – nay, insist – that it is perfectly acceptable to give into your automotive desires and fantasies… if you have the means to do so, which doesn’t simply require baller status.  It simply means that you are still able to pay your bills, protect your credit, provide for your family, do your research and find a good deal.  If you screw these things up now, good luck getting yourself some nice new wheels again in the future.  And, you will likely loose money if/when you sell, but minimize this up front by making a pragmatic purchase, even on an emotional car.

This is why I keep the Big D around for daily use & general schlepping of people and goods. It leaves room for a less practical, less rational, more entertaining vehicle… but I digress.

 

Uber:  A means to an end?

I’ve heard more lately from people stating they’ll simply take up Ubering on the side to finance their next car.  Eeek.  While I’m all for putting a little extra effort in to get a little extra out of life, remember that Uber is a car-sharing service for others, not a car-buying service for you.

Depending on where you live, and especially with recent rate reductions, you may find yourself required to drive 40+ hours per week to pay for a new car and it’s operating expenses while Uber Operandi; which then of course means you won’t be able to keep your normal job, which then of course means that Ubering had better pay you your desired living wages on top of that car payment.

It won’t of course, so you will up your driving to 80+ hours/week, at which point your brand new car smells awful from all the strangers that pass through it’s doors, and it’s potentially worse for wear over time than your original ride, thanks to the constant idling, careless passengers, bio-spills, and short, city trips.

However, if you are truly interested in this angle, driving for Lyft may be better, since they have a better vehicle purchasing programs and aids.

Driving for Uber so you can get a new car is like working for Subway so you can get a sandwich: there are better ways to get your hands on one.

On second thought, a Corvette has good luggage space and most Uber’s only have one passenger… right?