UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next
Author: xraymd Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 311084  
Subject: Re: Paying myself first Date: 10/28/2007 6:57 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 7
I have about $5000 set aside for "maintenance". It just sits in a savings account at 4.75%. I'd have to carefully consider whether I'd spend more than $1000 in one chunk for a car that's only worth about $1100 according to Edmunds TMV or $2000 according to NADA.

The main thing going for my car is that I know the entire maintenance history of the car so it is worth more to me than a equivalently priced used car. If it's a single mechanical failure I'd likely opt for something as extensive as a complete engine or transmission replacement. If it's involved in an accident though requiring both mechanical and structural repairs I'd probably just buy something newer.

Greetings, Lurker1999, this is what I do and how I think, too (I have somewhat less than $5K set aside but I am getting there). In fact, I put it to the test when I found my car was burning oil. The engine rebuild was about $1400 when my car is only worth maybe $3K as far as the Blue Book is concerned, but it has been my car for 15 years and is totally otherwise reliable. So I went ahead with the rebuild since my mechanic said there was nothing else on the horizon that looked like a major repair to him. I rationalized that the $1400 was maybe 5-6 car payments on a newer (used) car. In 500 more miles I will FINALLY have 100K on the odometer and have not had a car payment since 1994 (car was purchased new in 1992), so my car is *still* my car, engine rebuild notwithstanding. It is going great so far and it was a good decision for me. Now I am intrigued to see just how long I can keep my car going, though I have continued to set aside funds for another one in case the lifespan ends up being shorter than expected. Till now, though, it has been a fount of reliability (*knock wood*) and I do not forsee that changing. And my insurance premiums are relatively tiny, so it is a further win-win.

of the much-posted-about 1992 Toyota Tercel
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next


TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.