Thursday, July 22, 2010

Car repair or purchase - what would you do?

So my Ford is still sitting in my parking lot, and I'm still driving the borrowed Honda. I can't say I've saved much money, since I have paid $130 for a new (used) tire and a replacement brake line. Both situations leading up to these repairs were costly in terms of stress and slight trauma as well. I have a feeling I should bring the Honda back to it's owners' house and say "thanks!"

If I do that I have three choices:
1) Get back on the bus
2) Buy a new(er) car
3) Repair the Ford

The mechanic who installed the Honda's new brake line said more lines are rusty and are going to break, and will need replacing. He's willing to take look at the Ford for free. He thinks $3000 was a high quote for the repair, but admitted that it will still be expensive.

I hope to have the credit card balance down to $7000 and in a couple of months I will transfer it back to the LOC (5.5%), before the interest rate on the card goes back up to it's normal 19%. That leaves me with $3000, just about the cost of the car repair.

Next option is to buy something in the 2004 - 2008 range, and apply for financing. I have excellent credit so this may work in my favour, but if the car is $8000, that and my credit card debt will put me back up to $15 000! I might feel like I'll never get ahead. A newer car may mean less car troubles, but not necessarily.

What do you think I should do? What would you do? Would you repair the Ford or buy something newer?

Re: the bus - Bean starts JK this September and we don't have after-school care so I will have to leave work by 2:30 to pick him up 2 or 3 times a week. Taking the bus means I will have to leave that much earlier. I am on a waiting list for after-care so if we get a spot I can consider the bus.

Seriously, Karissa

2 comments:

  1. Hi Karissa, I enjoy following your blog, you are doing so well clearing your debt! My advice would be to keep concentrating on and clearing the debt, so my first choice would be to put up with the bus as the payments are more controlled (ie you only pay when you ride - saving tax, insurance & sudden shock bills if things go wrong). If this option wasn't doable then I would settle for just mending the old car. You can always treat yourself to a nicer car after you have finished clearing the debt. Hope my comments help. God bless from Country Girl.

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  2. I think I would either repair the Ford or keep repairing the Honda (depending on who I borrowed the Honda from). If my kid got into after school care, I would use the bus option.

    Leaving work earlier may not help long-term.

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Thanks for commenting! I will have it published as soon as I can ~ Karissa