If you’ve been reading all the personal finance sites on the Internet you know that it’s important to sweat the small stuff when it comes to keeping your spending in check but it’s REALLY critical to sweat the big stuff.
We’ve been doing a great job of keeping our expenses low (saving 52% of our income now) by watching what we spend our money on and “reality checking” each other when we do think we should spend some money on a “want”. If I had a nickel for every time I have just about talked myself in to a new laptop or some other expensive electronics gadget, I’d be able to offer my own stimulus package to the U.S.. Well, just when I thought I had everything under control, today I found myself looking at cars. Yes, I was surfing Craigslist for 2006 or 2007 Honda Accords. Let me explain my thought process:
Pros:
Our current Honda is a 2000 Accord with almost 100K miles on it
We are taking a road trip this summer and a nice newer reliable car would be great
We are starting to see more issues with our current Honda (check engine light has come on in the past, etc)
We have officially broken our record by having this car for over 8 years
I love the smell of a new car
Good used cars are relatively inexpensive as compared to “pre-economic crisis” prices
We can pay cash
Cons:
We just put a timing belt and water pump on the Honda
It’s starting and stopping like it’s supposed to
It would be nice to keep the cash in the bank to a) yield a little interest and b) have a larger emergency fund
We are putting a new roof on our house shortly
In the big scheme of things, money in the bank is probably better than equity in a car
So, how close did I come? I had scheduled an appointment with a woman to see her 2007 Honda Accord with only 8000 miles on it. After sitting at home waiting for my wife to arrive from work, I thought long and hard about whether we should go look at it. I know myself and if I had gone, I would have probably reinforced that I was doing the right thing, regardless of whether it was the right thing to do or not. Once you get the new car smell in your nostrils, it’s pretty much game over.
I’m happy to report that I came to my senses. I called the woman back and told her that we had changed our mind and would not be coming to see the car. As I was sitting here feeling like I’d just talked myself off a ledge, my wife came home and said, “Oh honey, I forgot to tell you. The check engine light came on in the car again.” Be strong. Be strong………
don’t really see too many real pro’s there. i’m driving a similar car (2000 acura tl) with 150k miles on it. you know the best thing about it? it keeps on going and i wouldn’t be able to find a cheaper car if i tried.
As a single woman who owned a car for 7 years and had many service issues for the final year, I have no regrets about buying a different car, which just so happened to be a used 2006 Honda Accord.
For those 2 years I had problems with the car I seemed to be constantly stressed out about what was wrong with the car, would it leave me stranded, is this mechanic honest, how much will *this* cost me, etc., etc. I wanted to keep the car for at least 10 years, but after a 3 month run of it seeming like everything was going wrong with the car, I just couldn’t take it anymore. I took good care of it but it was a Ford; hence my new Honda!
Of course there are no guarantees with my new car, but the peace of mind was well worth it to me.
In the last two weeks, three of my friends traded their old cars for brand new ones. Its giving me second thoughts about my own old car.
For the last 9 years or so, all Ive bought is higher end pre-owned cars, that Ive taken to a trusted mechanic for a thourough inspection before plunking money down. Brand new cars are nice, but too much of a personal financial burden for my taste.
There are good deals out there on pre-owned cars with leftover manufacturer warranty.
Just found your website.
I am an attorney – doing quite well actually. I drive a 1994 Accord with 225K miles. I have had everything changed twice – timing belt, etc. including “unspecified oil leaks”. My mechanic told me that my transmission needed re-sealing, which would cost $800. I said I would think about it – and my mechanic said that I was in no immediate danger, but to check my transmission fluid levels and not wait too long…that was 3,000 miles ago.
I would LOVE to drive your Honda with less than 100K miles. But the thing is, my car still runs just fine – I cannot rationalize buying another one when this one has never failed to start (except when the battery died). There is no reason to trade it in simply because I want a newer Honda.
Anyway – the moral is – as long as you can hold out without buying a newer car, your Honda likely will hold out too, even if you don’t want it to. (I would buy a different car – with cash – the instant mine gives out. But I have been saying that since 2003 and ended up putting the money towards rental properties).
Glad you resisted the temptation.