Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
First, thank you Maurice for something different. Money spent on a new car is money not invested in mutual funds or otherwise, so your question seems relevant - especially on a Sunday when the markets are closed.
Reasons you might decide to keep the '03 Mazda: 1) Mazda has a great reputation for reliability. Our '08 Fusion is actually a Mazda under the skin from back when Ford held a controlling interest in Mazda. The Ford service manager told me this is a better platform than what Ford is using today. 2) Many people nowadays get 200,000 or 300,000 miles on cars given the type of TLC you seem to provide. 3) Sounds like you are otherwise pleased with the car. 4) insurance will likely be less and you may even deem full collision unnecessary
Reasons to trade: 1) I usually trade when rust becomes an issue. Body work is very expensive and seems never ending at some point. By contrast, a newer vehicle likely won't have this problem for several years 2) Since new cars generally have bumper-to-bumper warranties for 3 or 4 years, that's an extra $1,500 - $2,000 per year (my estimate) that you won't be spending for repairs 3) Though engines and drive-trains last, there are many plastic parts under the hood which become brittle and subject to breaking with age. It becomes a headache keeping everything working at some point 4) interest rates are extremely low on new car loans - as little as 3% on a 60 month loan at some credit unions. Though you are likely inclined to pay cash, I'd suggest a loan as I think you can earn a better return on the $$ over 5 - 6 years. 5) New cars tend to be loaded with new features not found on their older siblings and are a lot of fun to drive. 6) None of us live forever. Enjoy while you can.
circa 33, reply to Maurice, I too am going to sell our old car as i only drove it 400 miles here in potato land 83301 zip. It is an 68 camaro not a big market for it so i can use the money to replace our 1991 good car with problems on the way. maybe get a 3-4 year camry with the funds. comments would be appreciated from yourself or catch22 or others. I too am age challenged. regards circa33Bill
There are many parked in garages in our area of Michigan, and soon will be out and upon the roads; as the weather moves to the warmer months.
Do your best to attempt to define the value of your car. There are those who will drive many miles to obtain this car; based upon the condition. Do not short change yourself without a complete investigation of current pricing, some of which is indicated in the link above.
Sidenote: Your portfolio mix should be in a nice in-the-middle position.
I love these guys. I listen to their podcast whenever I am tired of listening finance related ones. Hey, what other show you get a weekly puzzler?
About your Mazda:
I sold my Toyota Corrolla at over 110K and it was still running good but I was detailing before I took it to CarMax for a quote and decided to fill in the windshield washer reservoir. The bottom is plastic. Over the years it became brittle and when I was placing the cap on top, my thumb went into the bottle. I sold hit with a hole in there.
I'd say keep it as long as you do not deal with big repairs. However, if you are going to get a loan for a replacement car down the road in a few years, the interest rates could be higher. You can get a good deal now. Or, you can put some money on the side for each extra month you drive your Mazda and buy a new card in a few more years with a much bigger down payment.
I love Click and Clack but haven't heard them in a long time, then again, I don't listen to NPR any more. My car radio is permanently set to a local country station. I currently own a 2003 Dodge Grand Caravan with 119,000 miles. It still runs great, has no rust, and I won't sell until mechanical problems become too expensive to justify keeping it. The last time I bought a new car was in 1993, a Saturn; I liked their no haggle policy. Since then I've only bought used cars from CarMax; again, no haggle keeps me coming back. When the Caravan goes, I'll buy another used car or maybe a pickup, most likely for cash. Since I no longer have a wife or dogs, I don't need anything as big as a minivan. I do like the Rav4, though, after I drove my sister's.
Reply to @tgeno: You can subscribe to their podcast free on iTunes or download shows on their web site. iTunes is particularly convenient.
My wife's vehicle is RAV4 (V6). With a V6 engine, it is a very powerful but still light vehicle. I do drive a V6 truck and RAV4 could be scary in acceleration in the hands of not so experienced driver. We originally thought we would pass it to my son who started high school this year. I am not so sure now. I think we will get him a less powerful one as his starter wheels.
Having said that I like RAV4 but I do not like the placement of space tire too much. I might have considered a Highlander instead these days.
Wimps! Wimps! Who are you guys??? In the last 32 years I have had 3 ("three") VW's, all stick, all hatch (the single person's wagon), all purchased new. 1980 Rabbit Diesel: 198,000; totalled when rear-ended by drunk driver. Rain gutters for rack, drill bumpers for tie-down hooks. 1987 Golf: (guess) 320,000, odometer crapped out at 270,000 & knowing typical annual mileage 320,000 is a conservative est. Rain gutters, bumper tie-downs. 2002 Golf (current): 163,000,]. No gutters, expensive rack, bars too close, crummy bumpers.
The 87 was the best ever. Repairs, but nothing ridiculous. Great boat rack, race boat lived on top 10 mos out of 12. (Not very comfortable for sleeping in, tho.) Keeping it on the road indefinitely became a personal challenge to my trusty Polish mechanic; he bragged about it & the longer I drove it the less he seemed to be charging me. When I gave it up he felt it a personal loss.
Not looking at the moment; might consider RAV eventually if VW's get to be too civilianized.
I do enjoy C & C altho I don't work on my own car any more. When I say "I have 2 cars now that I have never changed the oil in" that gets folks spinning until I explain: "No -- that "I" have never changed the oil in". In other words, I have become a wimp too, now that my car has such a good "fairy grandfather" looking out for it. But I still think that changing the oil yourself is the best way to spot trouble early on -- like leaky CV boots, bad hoses, rusty clamps, etc.
Reply to @Maurice: Mo, I saw someone driving erratically down Commonwealth ave. They were muttering something about overpaid tollbooth workers and they were driving a mint condition red Hummer that looked like the tires never saw an unpaved road. The driver looked suspiciously like the photo that is next to your screen name. Any explanation. I am a bit surprised on the comments on this topic, seems like some fun other than funds needed to be expressed.
BTW, I think "Fresh Air" is the best program on NPR.
LOL - click and clack mentioned Commonwealth Ave. last week, thats where I got the idea.
I looked at your link. My guess is that's Paul Revere. I looked at the link and it mentioned scrod. Do you know the scrod joke about an out of town lady looking for the local cuisine and asking the taxi driver where to get the famous dish, btw?
if you don't google "scrod pluperfect". I think it's hilarious, unfortunately, I have to explain it everyone, and then they go "huh?"
Reply to @Maurice: Are you SURE that you don't live here in CA?? Your description of "normal" driving sure matches up real good:
"Everyone runs red lights, ignores stop signs, speeds over the limit and takes illegal turns when the signs say not to. We call that normal."
Have listened to Tom and Ray Magliozzi (Click and Clack) for many years now. Absolutely love that program. Both of them have degrees from MIT. They are incredibly funny, but man, they do know their stuff.
Re the Hummer, that's funny- you know, I never thought anything of the sort- I figured you for a Camry sort of fellow. Well, the Mazda's pretty close. Hey, if it's still working well and you like to drive it, why get a new one?
I am a car guy. Born and lived most of my life in Lansing, MI home of Oldsmobile and now sitting on two brand new assembly plants making the baby Cadillacs and the Acadia/Traverse/Enclave 7 pax SUV. I spent 15 years as AdminMgr of the MDOT fleet with direct oversight over all small vehicles thru Class 3, that auctions, the books and their AltFuel program.
I've played this car market everywhich way but loose. There are a fistful of good ways to play it - it just depends upon your situation and needs. There are times when leasing is best, buying used is best or buying new is best.
I've got a 2005 Pontiac Montana w/150K. I just did brakes and tires and have had everything repacked and cripes - I'm good. I am looking and am tossed between a Highlander and an Acadia. Issues are hybrid and mileage, utility, overtheroad comfort, and made in my home town.
BTW, my wifes Oldsmobile Intrigue was the best driving car I've ever enjoyed.
My first car was an AlfaRomeo Sprint Veloce' Coupe vintage '59 and hot.
circa33, catch22, thanks for the camaro"s for sale pages. I have bookmarked them. also thanks to Maurice for your comments on Camaro"s. Our Fido self directed roth ira is about 30% cash and 70% fido mutual funds per the Catch22 boat mostly bond funds with pdt John Hancock premium divid fd. all with a 5yr. horizon before before use. We are 78/75 trs.yng. Thanks again. worked for Pan American Airlines in LAX in late 50s as A&P mechanic b4 my career as a postal worker in 95066 zip. excuse my rambling on circa33
circa33 anyone. please advise why my rare posts show up in blue. I hope they are in blue or else my eyes are really in trouble. again maybe older age or pushing the wrong keys. regards to all circa33
Chuckle... that's a new question. Maybe you've just got the blues?
Actually, they only look blue to you, and mine look blue to me. Makes it easy to spot your own stuff in longer threads. Don't worry- your eyes are just fine.
---when you complete and post a new message in any topic area; if you were to click upon say.....fund discussions and that is where you placed your post, you would be able to view all posts in that section; but you would also see your post with the powder blue highlight. ---The same applies to your own posts within a given thread, as with this long thread. You will view your particular posts or direct replies with the powder blue highlight.
There may be other circumtances for the feature, too; of which I am not aware.
A nice feature, if you are scrolling through the list; your post will "pop out" among the others.
You "front-run" my post by 22 nano-seconds. You got a Goldman-Sachs online connection; or what? Your reply is much better; without all of my extra chit-chat. I gotta work on that.
circa33, to OJ &Catch22, thank you My RK surgery in 1988 still working i guess. also had caterack??? about 3 yrs. ago. All is well with 20/25 vision and got new 4 yr. license here in potato land last week. my history 1933-1952 95090 army 53-55 los angeles55-60 ca. 1960-1988 az. prescott 1988-1998 potato land1988-now no more moving unless hoizontal thanks once more circa33
hello - good commentary [although about car buying and not about investments]. Personally I would want to drive my car until it almost die, our last honda 1990 has about 140000 miles in it and it wont go anywhere so we've put it to sleep. We just bought a new honda 2011 honda accord v6 without Nav [mrsp was 32.5k but got it for 25K + ttl] back in end of march 2011 - end of quater, they gave us a great deal after doing thorough research w/ several dealers and bargaining. Honda during these times are 'under the water' they cannot sell any car and they gave us a great deal and the wife saids it's time to buy. best sites to research - edmunds.com, especially the posting guides/commentary areas and what buyers are paying for these vehicles. In General, I think if you buy in the metropolian areas price could slightly be cheaper than outside in the suburb.
also banks that may give you best rates to finance are your private federal unions [i.e. penfed.com]
Howdy Maurice, I saw this notification, too. Two very, very bright persons I have listened to for many years. Their abilities to mix the auto knowledge with their most keen sense of humor and wit is not to be found elsewhere. I have tried to imagine if their 25 year program had been oriented towards investments. Take care, Catch
Comments
Reasons you might decide to keep the '03 Mazda: 1) Mazda has a great reputation for reliability. Our '08 Fusion is actually a Mazda under the skin from back when Ford held a controlling interest in Mazda. The Ford service manager told me this is a better platform than what Ford is using today. 2) Many people nowadays get 200,000 or 300,000 miles on cars given the type of TLC you seem to provide. 3) Sounds like you are otherwise pleased with the car. 4) insurance will likely be less and you may even deem full collision unnecessary
Reasons to trade: 1) I usually trade when rust becomes an issue. Body work is very expensive and seems never ending at some point. By contrast, a newer vehicle likely won't have this problem for several years 2) Since new cars generally have bumper-to-bumper warranties for 3 or 4 years, that's an extra $1,500 - $2,000 per year (my estimate) that you won't be spending for repairs 3) Though engines and drive-trains last, there are many plastic parts under the hood which become brittle and subject to breaking with age. It becomes a headache keeping everything working at some point 4) interest rates are extremely low on new car loans - as little as 3% on a 60 month loan at some credit unions. Though you are likely inclined to pay cash, I'd suggest a loan as I think you can earn a better return on the $$ over 5 - 6 years. 5) New cars tend to be loaded with new features not found on their older siblings and are a lot of fun to drive. 6) None of us live forever. Enjoy while you can.
reply to Maurice,
I too am going to sell our old car as i only drove
it 400 miles here in potato land 83301 zip. It is
an 68 camaro not a big market for it so i can use the money
to replace our 1991 good car with problems
on the way. maybe get a 3-4 year camry with the funds. comments
would be appreciated from yourself or catch22 or others. I too am age
challenged.
regards circa33Bill
reply correction to Maurice and All
I only drove the Camaro 400 miles last year 2011
bear with Me at my older age
regards again
circa33 Bill
Don't know about the condition of the Camaro; but there is a healthy market in numerous areas of the U.S. for a decent Camaro.
http://www.thecamarotrader.com/listings.php?category=&make=&yeara=1967&yearb=1969&srt=model_year+ASC&p=50
There are many parked in garages in our area of Michigan, and soon will be out and upon the roads; as the weather moves to the warmer months.
Do your best to attempt to define the value of your car. There are those who will drive many miles to obtain this car; based upon the condition. Do not short change yourself without a complete investigation of current pricing, some of which is indicated in the link above.
Sidenote: Your portfolio mix should be in a nice in-the-middle position.
Take care,
Catch
I love these guys. I listen to their podcast whenever I am tired of listening finance related ones. Hey, what other show you get a weekly puzzler?
About your Mazda:
I sold my Toyota Corrolla at over 110K and it was still running good but I was detailing before I took it to CarMax for a quote and decided to fill in the windshield washer reservoir. The bottom is plastic. Over the years it became brittle and when I was placing the cap on top, my thumb went into the bottle. I sold hit with a hole in there.
I'd say keep it as long as you do not deal with big repairs. However, if you are going to get a loan for a replacement car down the road in a few years, the interest rates could be higher. You can get a good deal now. Or, you can put some money on the side for each extra month you drive your Mazda and buy a new card in a few more years with a much bigger down payment.
My wife's vehicle is RAV4 (V6). With a V6 engine, it is a very powerful but still light vehicle. I do drive a V6 truck and RAV4 could be scary in acceleration in the hands of not so experienced driver. We originally thought we would pass it to my son who started high school this year. I am not so sure now. I think we will get him a less powerful one as his starter wheels.
Having said that I like RAV4 but I do not like the placement of space tire too much. I might have considered a Highlander instead these days.
1980 Rabbit Diesel: 198,000; totalled when rear-ended by drunk driver. Rain gutters for rack, drill bumpers for tie-down hooks.
1987 Golf: (guess) 320,000, odometer crapped out at 270,000 & knowing typical annual mileage 320,000 is a conservative est. Rain gutters, bumper tie-downs.
2002 Golf (current): 163,000,]. No gutters, expensive rack, bars too close, crummy bumpers.
The 87 was the best ever. Repairs, but nothing ridiculous. Great boat rack, race boat lived on top 10 mos out of 12. (Not very comfortable for sleeping in, tho.) Keeping it on the road indefinitely became a personal challenge to my trusty Polish mechanic; he bragged about it & the longer I drove it the less he seemed to be charging me. When I gave it up he felt it a personal loss.
Not looking at the moment; might consider RAV eventually if VW's get to be too civilianized.
I do enjoy C & C altho I don't work on my own car any more. When I say "I have 2 cars now that I have never changed the oil in" that gets folks spinning until I explain: "No -- that "I" have never changed the oil in". In other words, I have become a wimp too, now that my car has such a good "fairy grandfather" looking out for it. But I still think that changing the oil yourself is the best way to spot trouble early on -- like leaky CV boots, bad hoses, rusty clamps, etc.
Mo,
I saw someone driving erratically down Commonwealth ave. They were muttering something about overpaid tollbooth workers and they were driving a mint condition red Hummer that looked like the tires never saw an unpaved road. The driver looked suspiciously like the photo that is next to your screen name. Any explanation. I am a bit surprised on the comments on this topic, seems like some fun other than funds needed to be expressed.
BTW, I think "Fresh Air" is the best program on NPR.
LOL - click and clack mentioned Commonwealth Ave. last week, thats where I got the idea.
I looked at your link. My guess is that's Paul Revere.
I looked at the link and it mentioned scrod. Do you know the scrod joke about an out of town lady looking for the local cuisine and asking the taxi driver where to get the famous dish, btw?
if you don't google "scrod pluperfect". I think it's hilarious, unfortunately, I have to explain it everyone, and then they go "huh?"
Sorry about that icyone. I didn't realize it was you.
"Everyone runs red lights, ignores stop signs, speeds over the limit and takes illegal turns when the signs say not to. We call that normal."
Have listened to Tom and Ray Magliozzi (Click and Clack) for many years now. Absolutely love that program. Both of them have degrees from MIT. They are incredibly funny, but man, they do know their stuff.
I am a car guy. Born and lived most of my life in Lansing, MI home of Oldsmobile and now sitting on two brand new assembly plants making the baby Cadillacs and the Acadia/Traverse/Enclave 7 pax SUV. I spent 15 years as AdminMgr of the MDOT fleet with direct oversight over all small vehicles thru Class 3, that auctions, the books and their AltFuel program.
I've played this car market everywhich way but loose. There are a fistful of good ways to play it - it just depends upon your situation and needs. There are times when leasing is best, buying used is best or buying new is best.
I've got a 2005 Pontiac Montana w/150K. I just did brakes and tires and have had everything repacked and cripes - I'm good. I am looking and am tossed between a Highlander and an Acadia. Issues are hybrid and mileage, utility, overtheroad comfort, and made in my home town.
BTW, my wifes Oldsmobile Intrigue was the best driving car I've ever enjoyed.
My first car was an AlfaRomeo Sprint Veloce' Coupe vintage '59 and hot.
peace,
rono
catch22, thanks for the camaro"s for sale pages. I have bookmarked
them. also thanks to Maurice for your comments on Camaro"s. Our Fido
self directed roth ira is about 30% cash and 70% fido mutual funds per
the Catch22 boat mostly bond funds with pdt John Hancock premium divid fd.
all with a 5yr. horizon before before use. We are 78/75 trs.yng. Thanks again.
worked for Pan American Airlines in LAX in late 50s as A&P mechanic b4 my
career as a postal worker in 95066 zip.
excuse my rambling on
circa33
anyone.
please advise why my rare posts show up in blue.
I hope they are in blue or else my eyes are really in
trouble. again maybe older age or pushing the wrong keys.
regards to all
circa33
Actually, they only look blue to you, and mine look blue to me. Makes it easy to spot your own stuff in longer threads. Don't worry- your eyes are just fine.
Nope, you're not losing your mind or eye sight.
Two items for the blue zone:
---when you complete and post a new message in any topic area; if you were to click upon say.....fund discussions and that is where you placed your post, you would be able to view all posts in that section; but you would also see your post with the powder blue highlight.
---The same applies to your own posts within a given thread, as with this long thread. You will view your particular posts or direct replies with the powder blue highlight.
There may be other circumtances for the feature, too; of which I am not aware.
A nice feature, if you are scrolling through the list; your post will "pop out" among the others.
Take care,
Catch
You "front-run" my post by 22 nano-seconds. You got a Goldman-Sachs online connection; or what?
Your reply is much better; without all of my extra chit-chat. I gotta work on that.
Be good out your way,
Catch
to OJ &Catch22,
thank you My RK surgery in 1988 still working i guess.
also had caterack??? about 3 yrs. ago. All is well with 20/25 vision
and got new 4 yr. license here in potato land last week.
my history 1933-1952 95090
army 53-55
los angeles55-60
ca. 1960-1988
az. prescott 1988-1998
potato land1988-now
no more moving unless hoizontal
thanks once more
circa33
also banks that may give you best rates to finance are your private federal unions [i.e. penfed.com]
just my two cents
I saw this notification, too. Two very, very bright persons I have listened to for many years.
Their abilities to mix the auto knowledge with their most keen sense of humor and wit is not to be found elsewhere.
I have tried to imagine if their 25 year program had been oriented towards investments.
Take care,
Catch