Piston Slap: Starting the Game All Over Again?

Sajeev Mehta
by Sajeev Mehta

Dave writes:

Sajeev,


I’m a sales rep for a corporate auto supplier in the Detroit area. I currently drive a 2008 Dodge Magnum SXT that I put around 5000 kms per month and currently has 165000kms. Bought it as a lease back with 30000kms in 2009 and it’s completely paid off.

My question is – Do I drive the Magnum for another year, putting the mileage up over 200000 and far reduce the residual value or do I trade it in on a low mileage Explorer, Flex, or Durango and start the process over again getting more cash value for the Mag. There’s no real reason to dump the Magnum – It’s in fantastic shape and aside from regular maintenance and some front end suspension work, hasn’t emptied my pockets.

Just looking for another point of view and some insight into what the residual value over time and mileage looks like for the situation.

Thanks,


Dave

Sajeev answers:

When a man (or woman) loves a car, that car must be driven. Losing several hundred dollars in value is no biggie, this prolongs the need to restart that monthly payment game. Given the condition of your Magnum and the (lack of) wear associated with lots of (implied) highway commuting in your career, I suspect you have no need to get back on the Debt Train for years! Plural. Enjoy it!

I couldn’t care less about residual value. The Magnum will always have a buyer: this ride has a loyal wagon following, even if the cargo area is compromised from that roof line. More importantly, it has already passed the rough part of the depreciation curve. If this Mopar was a late-model Audi–and you hated it–my tune changes accordingly.

Not losing hundreds in value is no reason to start the game all over again. We need more reason than that.

Sajeev Mehta
Sajeev Mehta

More by Sajeev Mehta

Comments
Join the conversation
4 of 24 comments
  • CompWizrd CompWizrd on Jun 13, 2012

    Sell SXT. Buy Magnum SRT8. Start giving me rides to work.

  • "There’s no real reason to dump the Magnum – It’s in fantastic shape and aside from regular maintenance and some front end suspension work, hasn’t emptied my pockets." This sentence completely answers your own question. Why the hell would you trade in a useable, good looking car for one of those boring SUV's and have to start making payments again? Do you really want a car note right now?

  • Jake Jake on Jun 13, 2012

    Sajeev, As a TTAC reader of 2 years running... 1. What is your most stylistically satisfying vehicle under $40K...that fits a wife, two kids, and a large dog? 2. If the answer to number 1 is like dividing by zero, then...what is the most stylistically satisfying vehicle (4 wheels required) under $25K that fits a commuter like a tomb? (methinks used lexus, but I could be convinced otherwise.) ...ehem, I wear my username like a drunken sailor's tattoo. I had a rough night, okay?

  • Speedlaw Speedlaw on Jun 14, 2012

    Interest is the money you pay because you don't have money. I consider it poison...you are literally working for nothing. I buy cars and run them into the ground. I don't recall ever trading anything for fashion. Buy a car you'll like for a while, and run till it becomes more to fix than keep..... Don't play the trade in game unless you need the SUV for some reason. I've two cars with no payments and will happily cruise forums and replace parts-I can fix anything but an autobox. Easy payments >>> no such thing. Also, as far as safety goes, I don't think a Magnum is "unsafe", or the new ones would be significantly better. That argument would apply, say to a pre or early airbomb car, but the more modern stuff like the Magnum will be as safe as a new car. Fear not, I have the same thing. I drive new BMWs, and realize the only difference between the e40 and e90 is a turbo and better gadgets. (Compare to the 328i and its only gadgets.) The automotive aftermarket will always provide better gadgets sooner and cheaper. Have you considered new stereo speakers as a "pick me up" ? If handling is not what it used to be, a set of end links and sway bar bushings, stock parts, are not too expensive and can usually be installed in the driveway to immediate benefit. I'm not pulling a 20-50k note for better satnav.

Next