New or Used: Did I Do Okay?
Shawn writes:
In Nov-2010 my 2000 Camry v6 XE with 70k miles started to have some problems, mainly an oil leak and a power steering leak. Additionally it was going to need a new timing belt soon, and the front driver side wheel makes some squeaking noises. While I could live with a small oil leak, I needed to fix the power steering pump. I don’t have the time or place (and possibly ability) to replace the power steering pump myself so this was going to have to be done at the mechanic.
After looking at the choices it seems to me the Camry was going to cost me ~2k to fix and possibly more in the next year or two (exhaust and tires were coming sooner than later). In trying to find cost effective transportation I found a 2010 Nissan Sentra with a $189 no money down lease. With the dealer giving me $4500 for my Camry my costs end up being reduced to about 80 a month for the payment plus ~$12 more dollars in insurance.
By my calculations the Camry would have needed to have over $5500 worth of repairs and maintenance items like brakes/tires in 3 years to make the Sentra the better economic deal so I am certain keeping the Camry was the better choice but I leased the Sentra because I valued fixed costs and hopefully 39 months of trouble free transportation.
My question to you and the best and brightest is what would you have done? Also do you have a target for cost per mile for your vehicles that you like to keep to. In my scenario the Sentra is .34/mile with the Camry at an estimated .27/mile (including 3k worth of repairs). Thanks.
Steve Answers:
Your calculations were wrong.
Either you sought the financial black hole that is a new car dealership’s service department. Or you found a mechanic that needs to finance a proverbial yacht.Let’s go down the list. You needed a…1) Possible power steering pump replacement2) Oil leak fixed3) Timing belt (now due based on years driven)4) Front driver’s side wheel noise (possible bearing or cv joint)5) Brakes/tires sometime in the future.I am fortunate enough to have a very good independent mechanic. Based on his perspective, these items would likely come around the $2500 mark. His $2500 vs. your $5500? Quite a difference. Obviously it pays to shop around a bit.That is what I would have done here. There is nothing in a Toyota of this vintage that can’t be fixed with OEM parts from a qualified independent mechanic. Whenever you get a quote that seems to be exceptionally expensive, always get a second opinion. This is true for auto repairs, insurance, and virtually any home repair I’ve had the misfortune of being price gouged on the first call.The right choice in the long run is to own your property. Not lease it. I would have chosen to keep the Camry and bought a Haynes manual as well.Sajeev answers:
Again, Steve is on the right track. To which I ask: you need cost effective transport, but you leased an economy car? Assuming this is a short term lease, the deal sounds okay from what little we see. Which is a thin veneer that often hides the ugly fiscal truth: there’s no way I woulda done that. What will you do after the lease ends? Perhaps I am being too mean, but it sounds like you are making payments on that Camry too.
Which implies your finances are highly leveraged. That’s bad, as it only works for a short period of time. And cars are not like college loans or a mortgage note, they are a terrible reason for going into debt. Well, the debt of leasing a Nissan Sentra, that is.
Like mentioned in a previous Piston Slap, you can do better buying a car in this price range. The CPO Focus was about $50 more a month, will last for 8+ years with minimal upkeep and is probably better optioned than your Sentra. And owning a brand new Corolla for $272 a month is a far smarter deal than your $189 lease payment. Even if you hate the Corolla, odds are it will be worth decent scratch in the end, to a kid on Craigslist. So kiss that money goodbye: you may not feel that now, but you will 4 years from now.
More by Sajeev Mehta and Steve Lang
Comments
Join the conversation
Only 70k miles? And already a $5500 repair bill? And you people have the hutspa to call European cars unreliable?!! You went from a POS to a worse POS. Congratulations.
swhiteside, there is more to life than cost. Instead of looking for absolute cheapest, try looking for absolute best.