Repair or buy?
April 2, 2011 9:05 AM   Subscribe

Help me navigate recent accident damage and whether or not I should buy a new car with 0 down!

So I have a 1998 Corolla with about 111k miles that I love to death. I use it to commute, which is 30 miles each way in LA traffic (it sucks as much as it sounds). I just put $1k into the car for new brakes, which I had hoped would buy me some time so I could save up some money for a down payment on a new car. It seems to be on its last legs anyways, the transmission is starting to stick, but I love it for its gas mileage, and the fact that I don't have to make a car payment.

However, I just got into a fender bender with an SUV, and now my hood won't latch and there's damage to my front bumper, so I need to get that repaired. I'm guessing about $750, is that about right? Is it worth it sinking another $500+ into this car, if i'm just going to need to buy a new one soon anyways?

I don't think I could lease (due to my long commute), is that a correct assumption?

So, my option would be to buy. I have been looking at cars like the Mazda 3 (which a friend has and loves), Honda Civic, and Hyundai Elantra. Are there any other cars I should be looking at? What is it like buying a new/used car with 0 down?

tl,dr: Should I spend money to fix a damaged hood on my old car and save for a down payment, or just buy a car with 0 down?
posted by wayofthedodo to Travel & Transportation (12 answers total)
 
Best answer: Setting aside whether it will even be possible to buy a new car with zero down (I think you'd need sterling credit), it's a bad idea. That new car will depreciate a couple thousand dollars the moment you sign the purchase agreement, which with zero down will put you a couple thousand dollars under water. If you encounter some financial difficulty and can no longer afford the payments, you will be unable to sell the car if you don't have that couple thousand dollars available in cash to make up the difference between the loan and what you can actually get for the car. If you absolutely have to sell the car and don't have that cash, you start doing desperate stuff like signing away your soul to a payday loan place. It's not a good road to start down if you're living close to the bone as it is.
posted by jon1270 at 9:16 AM on April 2, 2011


Is it worth it sinking another $500+ into this car, if i'm just going to need to buy a new one soon anyways?

Look at it this way: you spend $750 and you buy yourself months to put off getting the new one. In those months you can be saving for a bigger down payment, or shopping around for the perfect deal… whatever. Seems a small price to pay, and it's already paid for so you only have to pay it once. I've never seen a "0-Down" deal that didn't end up costing more in the end. Ever. That's the whole point of them.
posted by Civil_Disobedient at 9:31 AM on April 2, 2011


Just figure out a way to get the hood to stay down, and ignore the other damage as long as the car is driveable.
posted by Slinga at 9:36 AM on April 2, 2011


Best answer: Your assumption that "you are going to have to buy a new one soon anyway" is erroneous. Corollas are quite durable and should be viable to 200k.

I would guess market value of a '98 Corolla to be about $2000-$2500. So you could think of doing the repairs as spending $1000-$1500 (hood and tranny) for a $2000 car.

Another way to look at it is that you will spend the amount on the repairs on roughly the first three months payments on a new car. After that, you are out of pocket every month for a rapidly depreciating asset.

You probably have better things to do with that money. Fix the Corolla.
posted by dzot at 9:40 AM on April 2, 2011 [1 favorite]


Fix it, but have it done right. Because if there is something along the lines of chassis damage, that could create a rash of new problems. Toyotas (definitely the pre-2005s) are built to last. I'm surprised to hear that a 1998 only has 111k on it. It's still got a long way to go.

Zero Down only works in your favor if the world economic system collapses sometime soon.
posted by philip-random at 10:12 AM on April 2, 2011


Do the bare minimum to fix the Corolla (ie, who cares what the bumper looks like). Start saving for a new one towards the end of the year (0 down is a hard sell nowadays, plus the point jon1270 makes about depreciation - you want to throw at least $500-$1000 down).

But if you just paid $1,000 for brakes - take it somewhere else for this new work. I don't see how a brake job could have cost that much money....
posted by ish__ at 10:14 AM on April 2, 2011


Response by poster: Thanks everybody. I was hoping that there would be a way i could get a new car out of this, but looks like no.

ish___: it was new rotors and pads on the front, new pads on the back, a oil change, and a new steering tube that was leaking for $1000. did i get hosed?
posted by wayofthedodo at 10:24 AM on April 2, 2011


Power steering hose? I've paid $300 for front rotors and pads, and an oil change. It should be about $125 parts and labor for the rear pads and estimates for the hose + labor are about $200 so it sounds like you got worked.

(Shops tend to charge far more than they pay for parts. A shop wanted $671 for a part that was $250 at a local parts shop, $200 on Amazon.)
posted by ambient2 at 11:28 AM on April 2, 2011


I'm no expert (I just do my own brakes); but that sounds like a bit fishy. Totally run of the mill car - pads and rotors on 2 wheels, pads on 2, oil is all less than $500. I dont know what the steering tube should be - so maybe that's on the up & up but meh.... sounds fishy I guess.

On the other hand - if you're satisfied with the work, what's done is done :)

Take it to a few shops this time around and get different $ estimates if possible.
posted by ish__ at 1:37 PM on April 2, 2011


A new car, especially with 0 down, will cost you hundreds per month. If you're happy with this car, even if it costs you $750 to fix it, that will be less than 3 months payments on a new car. Totally worth it.
posted by Simon Barclay at 4:56 PM on April 2, 2011


FWIW, if your transmission is starting to stick, when was the last time you got your transmission fluid changed? Usually it's done every 50-60k miles, so you're probably due. Get that done, it'll cost a few hundred probably but your transmission is likely fine and just needs a fluid change. Really.
posted by InsanePenguin at 5:58 PM on April 2, 2011


it was new rotors and pads on the front, new pads on the back, a oil change, and a new steering tube that was leaking for $1000. did i get hosed?

Rotors will run you ~$100 a side after you return the old cores, pads are cheap, oil is cheap, and I have no idea what a steering tube is supposed to be. Factoring in "extras" like high-temperature brake grease, a new oil filter, etc., you're looking at maybe $300 in parts and maybe 4 hours of billable labor. If the problems you were having with you steering cost $500, then no you didn't get hosed. Otherwise… yeah, probably a little. Either get a mechanic you know and trust or learn how to do your own brakes (or ideally, both!)
posted by Civil_Disobedient at 8:50 AM on April 3, 2011


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