I have a 2009 Honda Civic which I made the mistake of refinancing a couple years ago. I had also made the mistake of rolling over some money into that loan. So I owe about $8,000 on the car still. It's the top of the line Si model. 90,000mi and it's in great mehanical shape. I pay $200/month for the car.
I'm getting married at the end of the year and we still have some things to pay for. I also plan on starting school again at the end of the year.
I have found an old used car that has been garaged and taken very good care of. It's a 1995 Chevrolet Caprice. The seller is asking $1000 OBO which is a good deal considering it has 91,000mi.
I know this car isn't as fuel efficient, however I've done the calculations and the difference in gas mileage and fuel types is negligible (Honda takes premium). The old used car will be more likely to break down but looking at the most common problems, the most expensive issue is about a $500 fix with labor included.
Over the next three and a half years I will have paid off the Honda. But on the other hand I could take the risk of this older car and save $6000-7000 depending on any unforseen repairs.
Could I ask you all for some input on the matter? Like would the factor of depreciation of the Honda make it better for trade in value down the road? Or could it be a good idea to go with the 1995 Chevy?
February 27, 2018 at 08:33AM
