Not to me! If the monthly gas cost exceeds the cost of a monthly payment and increased car insurance (new car), then, no, I wouldn't spend the money.

If, however, you can pay cash and can live without the money paid for the new car, then, while I still wouldn't want to buy a new car, I can understand his desire for a new car.

I agree with you! Having said that, we just replaced my DHs old 1998 Nissan Quest with a 2011 Dodge Caravan that only had 18,000 miles on it. Technically, we didn't need it, because the Quest ran fine; engine is in great shape.

However, the Quest does have over 130,000 miles on it and the axles needed to be replaced.

Plus, I get nervous driving a car with 130,000 miles on it.

My DH, on the other hand, thinks that the more small (not life threatening = small to him) and very annoying things wrong on a car, the more character it has. He gets to tinker with it and develop 'Rube Goldberg' work arounds for those small things.


We got the axles replaced on the Quest for $600. Less than a week later my DH heard a clunking noise from the front end. He checked it and found that the steering had rusted away from the body of the car. I am not sure that can be fixed, but he has finally fallen out of love with it. And I am very glad we bought the Dodge Caravan in time for the summer traveling we do with our 'Grands'.

Suggestion: Start saving the maximum amount you think you can handle for a new car payment out of your paychecks now. That way you will know what you can comfortably pay monthly before you make a commitment and have to pay. Plus you will have saved a decent down payment.

I have thought hard on whether I want to replace my car, and realized I love it, and haven't put money into it.. It's a 2000 Lexus Rx 300. It only gets 19 mpg in town, and 24 on highway. It's got 99,000 miles on it, but it humms, and makes me happy..

Will the insurance be the same for the new vehicle? When I was paying for my truck, it was much higher than when it finally (5 yrs) got paid off.

Personally, I drive my cars until they won't go anymore, we only buy used cars and pay cash, to us, buying a new car is a waste of money, the minute you drive off the lot, that car has lost thousands in value, in addition to the fact that with the exception of a very few models, I don't like NEW cars and it seems they get uglier and uglier, at least to us they do.

I figure one can buy lots of gas with the new payments. I drive a 4x4 Silverado Crew Cab Truck. No way am I giving up my truck to save gas. We only goshort distances and mainly back and forth to work.

Don't forget about a car payment, interest and, Higher insurance to add to the numbers.

peace

DH sometimes dislikes having his opinions confused by facts!

I drive a 15-year-old Volvo wagon I bought used; it has 124K miles on it, so you know where I'm coming from. My thoughts when I read your posting were:

1. Will you pay cash or finance? If you finance, you have to include interest in your calculations. Better to start saving now and buy only when you have saved enough to pay cash.

2. If you cars are really young (you said they are more than three years old, but three years is practically new,) you probably won't need any major repairs for a long time. But if you do anticipate repairs of more than $1500 or so in one year for one car, that goes into the calculation too.

3. You estimate savings of about $1200/year; that's just $100/month. If you finance a new car, your gas savings will only cut your car-related costs by that $100/month, but you will still be out of pocket more than you are now. Granted, you will still have the car when it's paid off, but think of other fun things that $$ could have purchased while you were using it to pay for a car you didn't really need.

Good luck with whatever you decide.