Should we buy a car (new or used) or put more into my current car than it's worth?

Submitted by bruceismynickname t3_yinrgp in personalfinance

My wife and I recently moved back to California and while getting a smog check for my car (bought it salvage), we found out it was altered and won't pass unless it's fixed. It looks like there was a spacer attached to an oxygen sensor because the catalytic converter was bad. To fix the issue it's going to cost us around 3k. The car itself probably isn't worth more than that - an '07 Prius with nearly 180k miles.

We've been contemplating buying a new car to replace one of ours for the last couple years but haven't because of the car market. Our plan was to keep driving our current cars until the market improved or one of ours stopped working.

Now that we have to make a decision, we're unsure which way to go. Would it be better to put the 3k into my current car and drive it for another few years or buy a car? I would anticipate spending 30-40k.

My thought process is that the car market may improve in the next year so something I'd buy now for 40k might cost 35-37k this time next year. But then again, I could be completely wrong. Anyway, what would you do?

Thanks ahead of time!

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Werewolfdad t1_iujjsz7 wrote

Depends on how much you drive it and if anything else is wrong with it.

$3k for several more years of driving is a decent deal.

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bruceismynickname OP t1_iujklns wrote

Every day - probably around 10-12k miles a year. Yes that's my thought process too! But always heard the advice that if I have to put more into than it's worth then it's not a good idea.

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sonnyfab t1_iujm1if wrote

That advice essentially means that if you could go out and buy another (not broken) 15 year old Prius with similar mileage for less than the repairs cost, it doesn't make sense to repair the car.

Have you actually looked around the see if you could replace your car for $3k? In the current car market, I'm very skeptical about that.

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bruceismynickname OP t1_iujoag8 wrote

Actually didn't know that part of the advice. That makes a lot of sense. And I agree it would be very difficult to find something similar for 3k right now.

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Werewolfdad t1_iujlb4v wrote

That advice doesn’t really make sense. It’s “what does this repair buy me”

Never been a fan of don’t put more into it than it’s worth. Lacks nuance

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[deleted] t1_iujknx6 wrote

You might be money ahead to fix it and wait until inflation cools and car inventory is better.

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bruceismynickname OP t1_iujlq4z wrote

Thanks for your input! We're leaning this way and I'm glad to hear you would do the same.

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AskAgainLater_Petal t1_iujm6iu wrote

The old spark plug non fouler plugged into the rear O2 port to turn the check engine light off trick, I'm actually surprised a smog tech actually looked and caught this. Anyways, the catalytic converter is a wear item, usually 80-120K they need to be replaced. I would just replace the cat and hope the car goes for another few years, it is a Toyota, I think odds are in your favor.

When you buy a new car, there's tax, higher registration costs, higher insurance costs, depreciation, loan interest (if you are financing) that should be compared against that $3K.

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jasperjava t1_iujntgg wrote

Is this a quote from an independent shop? I’d shop around for a second opinion and get the work done.

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bruceismynickname OP t1_iujpws6 wrote

Yes an independent shop! I've heard from a few so far and this seems to be the going rate for this.

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