Should I Buy or Should I Fix?

Let me jump in and give you some insights.. i had bought my prius new in Jan 2011 and i think i drive pretty roughly for a prius, have put in 54K miles on it and except for a failed headlight, nothing else ever happened. I have never gone to a repair shop or the dealership to get it fixed since i did not get any issues on my car. I have only used it for 23 months now but still i can say that the monthly maintenance costs are ZERO for me..... as for the price of the trade-in, it depends on the mileage as well. 16.5K is somewhat a fair price but to be honest here, my 2010 Prius bought new was appraised at 15.5K, its a base 3 and the exterior is as good as new.. only the cloth seats require some cleaning but that is only dust... But I can assure you that prii can go a long way... you should be fine with the vehicle...

 

I probably wouldn't be so worried about maintenance at this point. Can expensive things happen right now, sure. But in all likelihood it won't be for sometime down the road. Will it be as easy or cheap to fix as a '93 Civic? Probably not. I have a 92 Integra (purchased in '96 and has 240K miles) and it is easy to work on and parts are plentiful and cheap.

I know it is exciting to think about getting a new(er) car. However, I think your big concern at this point is if you can really afford the price for this car given your current situation. As much as the Prius is a great car and I would love for you to drive one, you don't want it to be a burden you regret.

Until you find steady work, I would either fix the Civic or buy another beater. If you think the $900 in repairs will leave you with a sound car, I like keeping the Civic as your driver because it is a known entity. The last thing you want is to buy someone''s problem. Also, the Civic probably has good value / demand if you go and sell it later when you are back on your feet.

After the car is repaired (or you buy another beater), try paying yourself the car payment you would have spent into your 'emergency fund each month. This will: 1) rebuild your fund for emergencies; 2) help you experience the pain of a car payment; 3) increase your down payment when you are in a better position to buy a new(er) car.

 

Good points.

 

Read mrstop's post again. With that in mind, if your $900.00 in repairs keeps that car on the road for another 9 months (or so), I think you are ahead of the game. Your monthly payments on the new car (assuming a 4 year loan), will be a little less than $400/month. If you put that money aside for the first two months after fixing your car, your savings will be almost replenished, right? So, you hopefully can make a better decision (and maybe get a better deal on a car), and be employed, at that later time. Personally, I'd hope that your Civic lasts a whole lot longer and I'd keep driving it until the wheels fall off and you can't glue them back on.

With your current financial situation, I don't like incurring debt. If you were employed (and include your wife's disability payments), you could probably easily afford the Prius. Right now, it sure looks like a real stretch of your money. I'd try to outlast your current un-employment situation with your old car.

Mike

 

I don't think its wise yo take on a car payment while you're unemployed. Who knows, maybe a new job down the line might include a company car?

I agree with the others. The repair on the civic is substantial, but low compared to a monthly car payment. "Pay yourself" and save up to replenish your savings and save towards another car you can afford with cash.

I've purchased every car with cash and don't regret it.

See this site: Drive Free, Retire Rich - daveramsey.com

 

I see I'm not the only one... I saved for about 10 years before buying the Prius. While I was able and prepared to pay cash, I will admit that I took advantage of the 0% financing and took out a small loan. However, I have the cash available should I need to pay it off and earning some interest. It was a hard decision as I could hear Dave yelling in my head.

 

Whether the 2010 Prius is a good deal depends on the options, condition and mileage. Typical terms for leasing are about 12,000 miles per year, and 13 cents per mile above that. So deduct or add the value of miles above or below, say, 30,000. Don't buy a used car without an independent inspection and a search for accident history, liens etc. MAYBE a Toyota certified car from a Toyota dealer could be ok for this. For all you know, this could be a rebuilt salvage, or a flood car. If the financing could be a risk or a stretch for you, but you really want a Prius, consider an older one. As for repairs, they're one of the most reliable cars ever made.