We have been thinking a lot lately about our automobile situation. While there are big cost savings in driving older cars, there are costs. Our 2000 Toyota Sienna has 145,000 miles on it and there are a number of things that simply must be done to keep this car on the road. Toyotas have exemplary reputations for staying on the road, but with proper maintenance. When considering our van, we realized that we will need a number of things done at this point: timing belt, water pump, external drive belts, transmission fluid, and tire rotation. The driver side door also needs a part replaced. It looks like our car will cost us around $1,200 in total maintenance costs in 2009 (oil changes included). We thought about buying a new car. However, what it came down to was that new cars must be maintained as well, but they have payments or significant upfront costs (if buying in cash). Sure, we could drive around a 2010 Toyota Sienna van, but it would likely cost us $400 a month ($3200/year) in loan payments and would still have maintenance costs. This is not including the increased insurance costs.
What it really comes down to is this – can you stand driving an older car? Do you believe in it? Can you defend your “clunker” at your next family get-together or social gathering and feel good about it? After careful consideration, we decided that we believe in driving older cars. It just makes sense to use something that still works just fine and costs much less than a new car. A new car is simply a luxury. We have three children and it just doesn’t work out for us.