Mark Bole <m...@p...net> wrote:


>How many miles do you put on it? Do you rely on it for your livelihood?
> Can you afford to leave it in the shop at any old unexpected time, and
>be without a vehicle for a day or two?

Just factor a rental into the repair estimates. But as I said, it has been very
reliable. It has had unexpected repairs only once in 13 years. Everything else
could be scheduled.

>
>If I am spending $750/year cash for repairs to a $1,500 car, and I
>replace it with a $5,000 car and reduce my repair bills by two-thirds
>for the next seven years, then I am even or ahead.

You had originally suggested 2 years.

>Mark Bole <m...@p...net> wrote:

>Otherwise, I still recommend the "replace when
>repairs are 50% of value" rule, it's easy to follow and pretty much
>guarantees cash-flow payback in two years.

Notice that, in your example, the value of the car only shows up as reducing the
net cost of buying the new one. It really has no effect on the fix or replace
question.

A couple of other points. One is that $5,000 Explorer is only going to be 3 or
4 years newer than my $1,500 Explorer. You're going be back on the high
maintenance curve before you've broken even.

Another is that you only do essential maintenance (including essential
preventative maintenance) on cars of this age. Once you have been presented
with a $750 repair estimate, the value of the car declines by $750 until you fix
it. The alternative is to foist it off on some unsuspecting buyer.

-- Doug

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