Everything unexpected and unpleasant in my financial life has to do with cars
Posted by Lise on 28 Apr 2008 at 10:43 am | Tagged as: personal finance, transportation
For a bit now the Subaru has been making a high-pitched whine when accelerating. Bringing it to my mechanic to fix, he diagnosed a major transmission problem and gave the car three months to live.
I have no idea how this happened. The mechanic suggested that transmissions shouldn’t fail like that, and that the fluid level might have been neglected, but we’re pretty good about checking stuff like that. According to Consumer Reports, 1999 Outbacks have a much greater than average risk of having major transmission problems, so we may not be to blame at all.
Either way, we’ll be replacing the Subaru - far before the 1994 Tercel, amusingly. Now I’m wishing we hadn’t put our $6,500 federal tax refund towards the mortage! We still have our emergency fund *wince* + our MA tax refund + our government bribe economic stimulus rebate - around $3,000, total. This is clearly not enough to buy a quality used car, and I would like to finance as little as possible, given the ripoff that auto loans usually are.
Since we do have another vehicle, we may be able to delay the purchase until we can afford it. Unfortunately having one car is just not a viable option for us long-term, as we live in an area with unreliable public transport and there are days when I need to drive separately from Matt, for doctor’s appointments, classes, etc. Believe me, I wish it weren’t so. I hate driving and maintaining cars in the worst way.
We’re also not sure if we want to replace it with a wagon/small SUV (nothing bigger than a Forester), because we do need some carrying capacity. On the other hand, with gas prices such as they are, another compact wouldn’t be a bad idea for our daily commute - and we showed this weekend that you can even fit 10 5-foot fence posts and 100 feet of chicken wire in a Tercel.
On the wagon front, the Subaru Forester and the Toyota Matrix look promising. From what CR says (I picked their Used Car Buying Guide up from the library), the Forester has some engine problems before 2003, and of course the Matrix wasn’t made before 2002, so there are some price implications there. If we go the compact route, the Corolla is, of course, consistently rated highly; and the Echo/Yaris do okay. The Honda Civic is also appealing, as is the Scion xA or xB.
There’s also the leasing option. Django’s been trying to convince me that this is the way for my car-despising self to go, and I don’t disbelieve him - it’s just that, short of shopping for a lease directly, dealerships aren’t exactly forthcoming with the figures I need to determine if this is the right choice for us.
What are your thoughts on this situation?
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Well, a couple of comments:
Transmissions suck. I had mine die on the old Altima, and at the time I needed it fixed because I was driving down to VA for a conference, and I wasn’t prepared to go car shopping.
That set me back $2000. _ouch_.
So you’ll be doing much better by preparing for a newer car now. And in that vein, a few comments:
First, auto loans can suck nuggets. Especially if you get it from the auto dealer. Don’t. Go to your local credit union and get a preapproved used auto loan there. Not only will you get a much better loan overall, but you will have better leverage when negotiating for the car. You can bargain them down pretty hard, and then spring out the fact that you have a preapproved loan, when they may have been expecting to get some grease off of giving you a loan. To give you an idea, I was preapproved for up to 20k for a used loan, at 5.5% interest on a 60 month loan, so yes, you can get acceptable loans. (I didn’t use the whole 20k, obviously).
As for the vehicle itself, to really get you money out of it, look for something 2-3 years old, low mileage, one owner. That seems to be where the curve of value/cost takes a bend. Before that you’re spending too much for a used car, after that, you’re losing long term life of the vehicle. I have to admit, the Matrix is a very sweet vehicle, roomy, with good cargo capacity, but not an SUV. I get about 26MPG, but I don’t do a lot of highway *and* I have the all-wheel drive package, both of which lower fuel efficiency. If you skip the AWD, I wouldn’t be surprised to see numbers up to 35 MPG. The Scion happens to be Toyota’s budget line. I looked at it, but one of them looks like a box on wheels, and the other was squinchier and didn’t have the options I wanted. The Yaris is a two-door vehicle which may not be a problem for you, but I occasionally ferry people, and this vehicle should last me long enough that if/when children exist, I can get a car seat in and out without killing myself. Until then, the back seats fold down enough that I carried a whole refrigerator in there.
[...] http://www.electric-monk.net/lise/2008/04/28/everything-unexpected-and-unpleasant-in-my-financial-li…Bringing it to my mechanic to fix, he diagnosed a major transmission problem and gave the car three months to live. I have no idea how this happened. The mechanic suggested that transmissions shouldn’t fail like that, and that the fluid … [...]
Thanks for the advice, Chad. You’re the second person to mention that I could see about having a new transmission put in. I need to figure out if that’s cost effective. $2,000 is less than the value of the car, if that’s what it costs.
Did you buy a new or a used Matrix?
Hey Lise,
I assume your upset about this situation - understandably so - but you’re coming off a little bitter in this post.
Therefore, you might want to reach acceptance of the situation before you make any decisions on how to fix it. Your judgement might be clouded by your irritation and could take away from your ability to make the best choice…
I can feel for you. I’ve been there.
Also, don’t lease, you’re wasting money. It’s an expensive rental. Plus you drive a lot of miles, won’t you go over and have to pay later?
You could also:
Save as much as possible until the transmission actually goes then buy a beater for cheap for the time being until you can save more or find a better option.
You might save yourself 6 months - 1 yr and with some diligence find a perfect fit and pay cash for it.
That’s my opinion. Do what you want with it. :)
Wow - We’re having a very similar car/no new car debate. We personally have decided that when we finance our next car it will be a 3-year lease with 15,000 miles a year. (Far more than we actually drive.) I’ve been beating myself about the head and shoulders trying to decide whether or not to actually go ahead with a new car… right now the black and blue marks are reading, “not yet.” Good luck with your decision. Let us know what you decide!
Heh - I guess I am a little bitter, Nicole. I dislike driving and I’m not thrilled that I’m forced into making crucial decisions about something I don’t even value.
Actually what’s frustrating me right now is all the different opinions I’m trying to sort through. Nothing wrong with people offering them - and I certainly asked for people to offer them! - but it’s a lot to take in.
Right now I’m working on just educating myself before I jump into any big decisions. Things like this should not be done without an excess of emotional attachment.
Thanks for the encouragement, Lizz. You have a bigger family to transport, too, so it’s a much more key decision for you. Good luck yourself!
[...] personal finance Thanks to all the folks - here and on my LJ - who have given me advice on my Subaru and its transmission problems. It seems I have a few [...]
Lise,
A couple things to note: a new transmission doesn’t buy you a lot more time on the car, I’ve been quoted that a new transmission gets you another year or two at most.
I bought a slightly used Matrix. I have a 2005 and I bought it slightly more than one year ago.
If you’d like to sit and chat some time, we can do that, and of course, you know my screen name.
[...] by Lise on 09 May 2008 at 02:47 pm | Tagged as: Uncategorized Our first step in solving the Subaru transmission dilemma was bringing it to a transmission specialist nearby. This, as it turned out, was the only step [...]