I wrote this elsewhere, but got no feedback, so I'm starting a new topic.
Is it just here, or is the used car market for small 4 cylinder cars insane? I'm not talking about import only. I've looked at domestics too such as Neons, Cavaliers (not that I'd buy, my mom's has convinced me not to buy a Cavalier) etc. It just seems insane.
In the other thread, someone asked why repair a 199x Toyota Corolla. Here is why I'd justify doing just that.
Quote:
I've discovered the market for 4 cylinder used cars is insane right now.
I'm at the point with my 1994 Geo Prizm, with 250K on the clock minus one tank of gas worth of miles, that replacement cars are likely $3000-$4000 for a car of comparable quality.
Sure I may need to do $1000 worth of work on my car. But right now, econoboxes seem to be pulling insane money if they are in good shape.
The problem is, at that price point in the market, the seller is likely to get that sort of money, especially if they are a dealer.
Why?
Buy here, pay here. Folks shopping in that market segment often are shopping for financing, and the car is incidental.
The problem doesn't stop at dealers. When dealers advertise $4000 for a 1993 Honda Civic, and "get it" because they tote the note, private sellers think they can get $3000 for their 1993 Civic. So when you show up with $1500 or $2000, they say no because they think it will sell for more.
And many times it does.
Or folks bought it at a BHPH lot, and owe money on it.
So at the $500 to $3000 segment of the car market, which I forgot to add was largely decimated by cash for clunkers as well, it's often a frustrating experience.
So I took the 1994 Geo Prizm with 249,6xx miles to my mechanic and asked him to go over it. Check the compression and the oil pressure. Put it up on the lift and look for rust, damage, etc.
I asked him to tell me if it was worth doing a new clutch, fix the leaks, replace the other drive axle and while he's at it,please replace the rear struts and give it an alignment.
Today, he told me the engine has good, fairly even compression on all four cylinders, the oil pressure is good, and there is no rust concerns.
He suggested we not do the leaks or the clutch. (This guy is always talking me out of paying him for work.) Instead, just do the axle, the rear struts. (I already did the front.) and we'll watch the clutch to see if it needs work in the future. We then revisit the leaks if the clutch really needs replacement.
I really can't replace this car for $500 or even $1500. I know the car.
So given the crazy market, and given I know the entire history of this car, I'm going to spend "crazy" money on a 16 year old Geo Prizm/(Toyota Corolla) and see if I can get another 5 years and 50-75K miles out of it.
I can certainly see spending money on an old car like this if one knows it would cost even more to replace it.
It's not the value of the car that determines how much to spend, but how much it costs to replace.
Thoughts?
Is it just here, or is the used car market for small 4 cylinder cars insane? I'm not talking about import only. I've looked at domestics too such as Neons, Cavaliers (not that I'd buy, my mom's has convinced me not to buy a Cavalier) etc. It just seems insane.
In the other thread, someone asked why repair a 199x Toyota Corolla. Here is why I'd justify doing just that.
Quote:
I've discovered the market for 4 cylinder used cars is insane right now.
I'm at the point with my 1994 Geo Prizm, with 250K on the clock minus one tank of gas worth of miles, that replacement cars are likely $3000-$4000 for a car of comparable quality.
Sure I may need to do $1000 worth of work on my car. But right now, econoboxes seem to be pulling insane money if they are in good shape.
The problem is, at that price point in the market, the seller is likely to get that sort of money, especially if they are a dealer.
Why?
Buy here, pay here. Folks shopping in that market segment often are shopping for financing, and the car is incidental.
The problem doesn't stop at dealers. When dealers advertise $4000 for a 1993 Honda Civic, and "get it" because they tote the note, private sellers think they can get $3000 for their 1993 Civic. So when you show up with $1500 or $2000, they say no because they think it will sell for more.
And many times it does.
Or folks bought it at a BHPH lot, and owe money on it.
So at the $500 to $3000 segment of the car market, which I forgot to add was largely decimated by cash for clunkers as well, it's often a frustrating experience.
So I took the 1994 Geo Prizm with 249,6xx miles to my mechanic and asked him to go over it. Check the compression and the oil pressure. Put it up on the lift and look for rust, damage, etc.
I asked him to tell me if it was worth doing a new clutch, fix the leaks, replace the other drive axle and while he's at it,please replace the rear struts and give it an alignment.
Today, he told me the engine has good, fairly even compression on all four cylinders, the oil pressure is good, and there is no rust concerns.
He suggested we not do the leaks or the clutch. (This guy is always talking me out of paying him for work.) Instead, just do the axle, the rear struts. (I already did the front.) and we'll watch the clutch to see if it needs work in the future. We then revisit the leaks if the clutch really needs replacement.
I really can't replace this car for $500 or even $1500. I know the car.
So given the crazy market, and given I know the entire history of this car, I'm going to spend "crazy" money on a 16 year old Geo Prizm/(Toyota Corolla) and see if I can get another 5 years and 50-75K miles out of it.
I can certainly see spending money on an old car like this if one knows it would cost even more to replace it.
It's not the value of the car that determines how much to spend, but how much it costs to replace.
Thoughts?
