That New Car Smell
I bought my 1994 Volvo 850 wagon in 2000 for $9,250. It had 87,000 miles and was in good condition. Six years later, it's time to buy again.
In one of today's featured articles on Boundless, Heather Koerner encourages us to examine our motives when we're tempted by that new car smell. Chances are, she explains, the old one we're currently driving is just fine. That's generally sound advice but there comes a time when an assesment of current and projected costs may mean that you are upside down in car repairs.
The phrase "upside down car" means that you owe in loans more than the car is worth. But what about when repair costs are close to or more than the car is worth? Is there a sweet spot in between repairing and driving an old car and buying a new or used one?
Well, for me, the sweet spot is right now.
If I were to repair everything that's mechanically broken with my 140k mile Volvo, total cost would be over $2,000 - and this on top of $1,500 in repair and maintenance over the last year and a half.
Volvo for life? Forget about it.