Between a rock and a hard place. Please help

Hey guys, I always surf the forums however I don't post much. I find myself posting now, looking for some advice and guidance. Let me lay out the scenario, and my situation to see if you guys could offer some solid advive.

I'm 25 years old, trying to save for my own house. School loans have been laying heavy on me, I've been paying those off as fast as possible (almost done with the loans). I owned a 2006 Subaru WRX limited edition, I just sold it recently and bought a 1991 Nissan sentra for 1,000$. The payments on the subaru, (500$/month) and insurance (240$/month) were really taking it's toll on me. So I could finally breath with some relief, I used the excess money that I had now, that I was free of my car loan/high insurance prices, to pay off a personal loan and other misc deals.

So fast forward to the current time, I'm in a bad spot. I purchased a truck to get me through the harsh winter here, the truck cost me 1400$. Cheap, clean truck for being a 4x4. So I have the Nissan and the truck, car loan free, and really cheap insurance.

Just last week, the Nissan blew a tire, and the starter died. The Nissan was 1000$ and I bought it two years ago, I would say I got my moneys' worth out of it. It needs to many repairs to consider keeping, so I'm letting it go for cheap or junking it. The Dodge truck, after 2 months of owning it, is starting to break down and give me problems. I already replaced the water pump, and radiator lines (300$ approx.) now it needs a new radiator. This truck will cost me just shy of 1000$ when I finally get it back on the road (total invested, approx 2,000$).

Now here is where I am lost and unsure, I need to sell the Dodge, I can't keep it if it's going to nickle and dime me everytime I drive it. So, I am going to fix it and sell it. My question to you guys is, what should I do next? I need to make a wise financial move. Should I buy another beater, for 1000-2500$ and pay cash. Or should I get a loan and purchase something worth a bit more money and more reliable.

I have my eye on a 2002 Jeep wrangler, really clean, sharp looking Jeep and has 4x4. They're asking 7500$, payments would be about 250$ a month, not bad at all, insurance wasn't that bad either. I'm just unsure if I want another car loan, is it FINANCIALLY smart to get into another car loan? Or should I buy another beater for 1500-2500$?

Any and all advice is greatly apprecaited, thank you.

It sounds like the beaters really didn't save you anything for the short lifespan and the amount of work you put into them. I think you could find a really reliable vehicle for around $3,000. You may have just got a couple lemons. Were they pretty rough? Next time, can you take one to a trusted mechanic before you buy it, and give him $50 or something to look it over good? I bought a 10 year old Chevy pickup last year for $4,000 with 100k on it, and I wouldn't be afraid to take it cross country. I see no reason why it won't get 200k or better. You should have no problem finding a good vehicle cheap. Just look it over good.

So you guys think I should skip the idea of the Jeep and purchase a cheap(cheaper)vehicle something around 3-4 grand?

What is your cash flow available for cars?

For example, let's say you have $250/month available for car ownership (not insurance). If you buy a $1,000 beater and it lasts 5 months, you win because you'll save one month at $250. You only need it to survive 4 months for it to be a good deal.

Same thing with a more expensive car. If you can buy a better car for $2,500 you need to be confident it will last 10 months with minimal repairs. Depends on your cash available and cash flow.

Props for doing the smart thing, ditching the nice car, and trying to make some serious change in your life.

couponhed said: A starter?. Fix that and I'd expect the Nissan to run another 30k or so.

I'm sorry to say it, but its probably best if you avoid used American made cars and trucks. GM is bankrupt for a reason. Let the Dodge go, fix the Nissan.

(Waiting for Chinese-made cars to show up in our market; at least then US-made cars will be reliable by comparison.)

The car needs 4 tires, has a really bad fuel leak (tank and filler tube) the motor is weak and throttle cuts out constantly. It needs some repairs, and it wouldn't be worth the money.

Yea, get an older Subaru AWD. Looks like it was the IDEAL car for you.

Smart driving and good tires will get you through any winter. I live in MN and have driven through plenty of snow, both on bad tires and good. My current car is a sport compact with > 250 FWD HP and I have no issues with snow, at all. I bought a second set of wheels for cheap (can get a set of steel wheels for < $300) and a set of high performance snow tires (about $5-600) and I just swap them on when the snow starts flying. I keep the summer wheels in the garage and put them back on when the snow is gone. People might think OMG $1000 for wheels and tires... but you just said you spent $1000 on a truck that's falling apart to get you through the winter. Plus with two sets of tires, they're going to last about twice as long, and tires aren't going to break down on ya. A good set of snow tires makes a world of difference in traction during winter, both dry pavement and ice/snow. Summer and even "all season" tires are rarely made of compounds that work well in cold weather. In fact, below 40 degrees or so, most tires become hard as rocks and lose a lot of traction. Winter tires are specifically designed to stay soft in cold temps.

Drivetrain (FWD/RWD/AWD) makes little difference if you drive smart. It all comes down to keeping the tires stuck to the road and the quality of the tire is the major component in that. AWD is great if you need to take off from a stop quickly, but after that it does nothing to keep you on the road. The key to driving in the snow is to do everything more slowly. Turn the steering wheel more slowly, accelerate more slowly. Jerking the wheel back and forth will cause the tires to break loose more easily, the same with mashing on the gas to get moving. It's all about controlling your change in velocity (velocity is speed AND direction). It's also important to be aware of the road conditions. If there are piles of snow, try and drive in the tracks of another car. If there's no snow, watch out for ice. People claim that black ice is invisible... it's not. It's certainly harder to spot, but the road will look wet or dark.

So you were trying to reduce your maintenance costs, so you were considering switching to a Wrangler?

Get a cheap used Honda and you'll be fine.

A Wrangler would be pretty terrible for your gas mileage. Is a 4x4 absolutely necessary where you live?

I dont think going from one beater to another is saving you any money. You need to put some repairs into older cars, you cant junk em as soon as they need some work, otherwise you will constantly be doing this.

If they are really bad, which for $1000 they probably were, fine spend $2-3k and get some thing in better condition. But spending $7500 on a 8 year old Jeep is still going to need repairs.

Fix the Nissan.
Ditch the dodge.

The sweet spot for used cars is $3-$6k. Save until you can pay cash. Toyota or Honda.
Your Nissan should hold up OK.

Any $3k Subaru or 97-01 Jeep Cherokee would be good for you...Subaru would have better gas mileage, but you could get a similar mileage/condition Cherokee for a lot less than any Forester/Outback.

Fix your 2 cars. Don't get a new car. Save some money.

larrymoencurly said: Don't buy beaters unless you know how do at least light repairs yourself (light = no engine or transmission removal but would include changing hoses, starters, and radiators). $1,000 for a starter is ridiculous, unless the labor is really, really difficult for it, as it is with some Hondas that need 5 hours, and you can typically buy a good rebuilt for less than $200.

I don't understand how your Dodge truck could have been "clean" but then "nickle and dime" you. I hope the Jeep Wrangler isn't similarly "clean".

Do you realize that the vast majority of used cars sold at new car dealers are not trade-ins but are bought at auctions, just like the vehicles on used car lots? And before auction, they're cosmetically refurbished with cheapo new upholstery, detailing, and sometimes even a quick paint job.

I'm capable of changing the starter, you need to read my post again. I paid 1,000$ for the car, the starter was 80$, I'm more than capable of doing the repairs. However, the fuel tank leaks, the engine burns oil, power stearing leaks bad, and a lot of other misc issues. Not worth me fixing the Nissan, it'll take well over 700$ to repair the vehicle, all in all it'll still run terribly after those repairs.

The truck was solid, lasted me through the winter and now all of these radiator/over heating issues occured. Again, if you would read my posting, instead of jumping to assumptions, I am not going to purchase a Wrangler, I am going to pick up a used Honda accord/civic.

forbin4040 said: Fix your 2 cars. Don't get a new car. Save some money.

Could you tell me why you'd choose to fix the two cars? The Nissan will cost over 700$ to repair, and the Dodge has cost me over 600$ thus far. Why spend 1300$ + and have a higher possibility of break/repair maintenance on two vehicles when I could purchase one vehicle, with less miles, newer condition and inspeceted.

A $3K Honda Accord in my opinion is a more reliable, dependable car with hopefully a less significant repair tab.

The Nissan is being sold, it is in no way shape or form repairable to be road worthy for under 1000-1500$ in repairs. The Dodge, I paid 1400$ for it, and I've spent almost half the cost of the vehicle in repairs, in a matter of two months.

Could you please provide reasoning behind your post which I quoted above? Thanks.

panmet69 said: A couple things to consider.

1. If you do buy a car outright, you can get liability only insurance. I'm in downtown Boston, MA (not a cheap place to live) and I'm getting liability only insurance on my 94 nissan pickup for $400 a year. This adds up very fast. Previously I had full coverage on this exact vehicle from a cheaper city for $1000 / year. You effectively end up insuring it yourself.

2. The "sweet spot" for used vehicles is is really 3-6 years old. For example, my mother picked up a 2002 Suzuki XL-7 with 50k miles for $8000. We expect to run this thing to 200k+ Find a lower mileage older vehicle (< 8k / year), from a private seller. Sounds like you know a thing or 2 about cars so you can check 'em out yourself. Even if you have to take out a loan,

3. Call for insurance rates BEFORE you buy the car and shop around. If you are worried about whats on your record, run a CLUE report on yourself (1 free per year).


4. Stay far far away from Jeep, as a person who has worked at an auto parts store for many years, those are lemons. Go with Honda, Toyota, Subaru, Nissan, Suzuki. I consider Nissan and Suzuki diamonds in the rough. You get the quality without paying for the name. The Suzuki XL-7s have toyota transmission for example.

Thanks for the post, I currently run liability on my vehicles now so cheap insurance is the way to go for me.. I've called my insurance company and got some quotes, the Honda's are very cheap on the insurance policy. Thanks for the info on the Suzukis, I'll have to check that out!

Radiator is an easy replacement on a lot of trucks. You can probably get a decent new one on eBay for around $100.

Yo Ma-Ma said: I don't understand why you are 'junking' your Nissan because of a blown tire and bad starter?

However, the fuel tank leaks, the engine burns oil, power stearing leaks bad, and a lot of other misc issues. Not worth me fixing the Nissan, it'll take well over 700$ to repair the vehicle, all in all it'll still run terribly after those repairs.
Yeah, ditch the Nissan. It sounds like a lost cause.

Manic9803 said: I am going to fix the dodge, and try to sell it on craigslist for what I paid for it. I am taking a loss, over 600 in parts replaced howeverHow many miles does the Dodge's engine have on it? How many miles a month do you drive?

I know you have already ditched the Jeep idea, but just to re-iterate why it is a bad idea to purchase an older used car on payments like that -- If you did, you would be paying $250 a month AND making similar repairs.

If you think you can keep the Dodge running for an average of less than $250 a month then you should keep it versus buying a used car on a loan. If you find a different used car you'd like...simply divide the cost by the amount of time you think it will last with minimal repairs (or if you want to estimate repairs in then average over the full life of the vehicle)....then base your decision to keep the dodge on that, calculating in fuel economy differences, etc.

SOrry for the late reply, sold the truck, guy offered me 1800, I bought it for 1300 (or 1400 can't remember). The nissan went to the junk yard, made money off of that as well. Went and bought a 1998 Honda Accord in excellent condition and paid cash. Very happy with the car, and it's wonderful on gas compared to the truck.