Douglas Johnson wrote:

> You had originally suggested 2 years.

I was just repeating something I'd heard in a business setting years
earlier. Even if the math is a more complicated than I implied at
first, I still think it *sounds* like a really solid and easy rule! ;-)

> 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.

Well, what does then? The older the car, the harder parts are to get,
and the less likely you are to find a mechanic intimately familiar with
the model and year. Some cars are so old (yet less than twenty years)
that even when operating to manufacturer specs, they don't pass modern
smog laws in some states.

I'm still claiming there must be *some* point when repair costs
accelerate for an older car. Since older cars (excluding collectibles)
are cheaper, then there would be a strong inverse correlation between
the value of the car and annual repair costs.

> 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.

To tie this back to financial planning and the OP, I got three things
out of his message: older car (14 years), high mileage (180K), and
peeling paint. What we don't know, although some hints were given, is
the role this car plays in sustaining his (family's) earning capacity,
and what the condition of non-essential systems (air conditioning,
sound, safety/security, interior coverings and finishes) are. If he
lives in the snow belt, there's sure to be some rust by now.

With those conditions, I'm still advising that after ten years, let's
say fifteen max, it makes sense to buy a newer used car, say in the
five-year old range, and plan to then keep it for another ten years or
so. Others have suggested keeping it for another five years, never
selling it, and at least one other suggestion to trade in a for a newER
(not brand new) vehicle.

-Mark Bole

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