WEBVTT - Repair or Replace that Old Car #218 0:00:00.160 --> 0:00:02.840 Welcome to How the Money. I'm Joel and I and Matt, 0:00:02.920 --> 0:00:06.120 and today we're asking the question repair or replace that 0:00:06.160 --> 0:00:27.760 old car? Yeah, Joel, did you know that the annual 0:00:28.000 --> 0:00:31.200 expense for making repairs to a ten year old vehicle, 0:00:31.560 --> 0:00:33.720 it's about the same as a single month's worth of 0:00:33.760 --> 0:00:36.880 car payments to a new vehicle. Isn't that crazy? And 0:00:36.920 --> 0:00:39.040 not even necessarily new, like sometimes these cars are a 0:00:39.080 --> 0:00:41.559 few years old. But either way, there are payments on cars, 0:00:41.840 --> 0:00:43.280 and a lot of times I think we we blow 0:00:43.280 --> 0:00:45.040 out of proportion the amount of money that we put 0:00:45.120 --> 0:00:47.880 towards repairing our vehicle. And so that's what we're gonna 0:00:47.880 --> 0:00:49.800 talk about this episode. Man, you know, this isn't a 0:00:49.840 --> 0:00:51.839 slam dunk though, Like we're not gonna tell everybody to 0:00:52.320 --> 0:00:55.000 hang onto their old vehicle. There are some great reasons 0:00:55.040 --> 0:00:57.880 to replace that vehicle, and we're gonna cover all of 0:00:57.880 --> 0:01:00.680 those and some more in this episode. Buddy, Man, a 0:01:00.680 --> 0:01:02.320 lot to cover here. I think we've got a lot 0:01:02.320 --> 0:01:05.640 of good information for people to consider if they're driving 0:01:05.680 --> 0:01:07.600 an older car that's starting to give them more issues 0:01:07.640 --> 0:01:09.560 and they're not sure what should I ditch it, should 0:01:09.600 --> 0:01:11.480 I keep it? Should I be trading up for a 0:01:11.480 --> 0:01:13.720 newer vehicle, and there's just there's just a lot of 0:01:13.760 --> 0:01:16.240 moving parts in the situation. Uh, not to mention the 0:01:16.240 --> 0:01:18.560 parts that might be breaking down in your car. So yeah, 0:01:18.600 --> 0:01:20.120 we'll kind of cover a lot of that stuff on 0:01:20.160 --> 0:01:22.440 today's episode. That's right. Well, before we get to all that, 0:01:22.480 --> 0:01:24.920 I wanted to share a quick little story my car 0:01:24.959 --> 0:01:27.800 insurance company. I noticed that they had this application that 0:01:27.840 --> 0:01:30.840 you could download. They started offering one of those apps 0:01:30.920 --> 0:01:33.560 that you can download and it's super easy and it 0:01:33.600 --> 0:01:35.959 tracks you're driving. A lot of insurance companies are offering 0:01:36.000 --> 0:01:38.440 these now, and what's great about this is that you 0:01:38.480 --> 0:01:42.160 have the opportunity to decrease your premiums every single month. 0:01:42.200 --> 0:01:44.360 And I thought, you know what, I like saving money. 0:01:44.560 --> 0:01:46.600 I'm going to give this a shot. And you with 0:01:46.680 --> 0:01:49.400 how little you guys drive, you only have one car 0:01:49.840 --> 0:01:51.520 and it typically sits in the driveway a lot of 0:01:51.520 --> 0:01:54.000 the time. Yes, yeah, the large portion of the day 0:01:54.080 --> 0:01:56.240 it sits there. That's that's why I've considered doing the 0:01:56.520 --> 0:01:59.000 what's that app? Touro where you like rent you know, 0:01:59.040 --> 0:02:00.520 where you can rent out your view goal. It makes 0:02:00.520 --> 0:02:02.040 some money side money with it. Yeah, I mean, it's 0:02:02.040 --> 0:02:04.320 just it's an asset. It's it's money literally sitting in 0:02:04.320 --> 0:02:07.360 our driveway that is doing us nothing except for be 0:02:07.440 --> 0:02:09.440 there for when we need it. And I guess it's 0:02:09.440 --> 0:02:12.640 worth it because for that reason, otherwise it would be 0:02:12.639 --> 0:02:15.560 earning its keep. On the side, I think, yeah, insurers 0:02:15.560 --> 0:02:18.680 are going more towards tracking your driving and giving you 0:02:18.720 --> 0:02:21.160 discounts if you drive a fewer miles, which I love 0:02:21.200 --> 0:02:24.680 because really, car insurance should be in an ideal world 0:02:24.880 --> 0:02:26.960 based on how much you drive, because someone who drives 0:02:27.000 --> 0:02:30.240 more is you know, a bigger risk to the insurance company. Absolutely, 0:02:30.280 --> 0:02:31.840 So how's that going for you? Then? Yeah, well, so 0:02:31.880 --> 0:02:34.320 we did it. It was a three month period, right, 0:02:34.320 --> 0:02:36.640 It was about ninety days that they tracked my driving 0:02:36.760 --> 0:02:39.480 keeps driving and specifically, I'll tell you what they were 0:02:39.480 --> 0:02:41.560 looking for, at least you know this app. It was 0:02:41.600 --> 0:02:46.639 specifically looking for how hard we break, how quickly we accelerates, 0:02:46.960 --> 0:02:49.720 as well as the percentage of driving that we were 0:02:49.720 --> 0:02:53.040 doing at nights so nighttime driving, and it took all 0:02:53.040 --> 0:02:54.560 three of those things into account. And at the end 0:02:54.560 --> 0:02:57.080 of that three month period where they were analyzing our driving, 0:02:57.160 --> 0:03:03.079 we were gifted a discount of a bucks which isn't huge, 0:03:03.520 --> 0:03:06.239 but it is way better than nothing, right, and so 0:03:06.680 --> 0:03:08.640 it's also worth noting though. Here's the thing, and this 0:03:08.680 --> 0:03:10.640 is why I wanted to share it with folks. There 0:03:10.639 --> 0:03:12.640 are a lot of different apps out there, but what's 0:03:12.680 --> 0:03:14.680 important to look at is whether or not you can 0:03:14.720 --> 0:03:18.280 potentially see your premiums increase. And that is the case 0:03:18.320 --> 0:03:20.360 now or some companies. If you read the fine print, 0:03:21.000 --> 0:03:23.079 like there's a you know, eight edits in drivers will 0:03:23.120 --> 0:03:26.480 see their premiums decrease, but to edits in that drive 0:03:26.600 --> 0:03:30.040 freaking crazy, they're going to see the premiums go up. 0:03:30.360 --> 0:03:32.480 And so if you know that, that's you. You know, 0:03:32.520 --> 0:03:34.680 if you're a heartbreaker or you just like to get 0:03:34.760 --> 0:03:37.760 wherever you're going as quickly as possible, you might want 0:03:37.760 --> 0:03:40.720 to stay away from down letting that app uper premiums 0:03:40.720 --> 0:03:42.760 where they are because you might be getting a deal. 0:03:42.880 --> 0:03:44.680 As it is for folks to drive like your grandma, 0:03:44.760 --> 0:03:48.080 drive cautiously and also rarely drive like we do or 0:03:48.120 --> 0:03:49.920 don't drive very much at all. I think it's a 0:03:49.920 --> 0:03:51.360 it's a great way to go. I think, you know, 0:03:51.440 --> 0:03:53.480 we did the same thing with our insurance company. But 0:03:53.520 --> 0:03:55.440 this was probably a couple of years ago. And I 0:03:55.480 --> 0:03:59.880 think we saved roughly something like that off our overall premiums, 0:03:59.880 --> 0:04:01.920 so pretty huge. Yeah. Uh. And it's one of those 0:04:01.960 --> 0:04:04.800 discounts that keeps going in perpetuity. Yeah, I like those 0:04:05.120 --> 0:04:08.360 forever discounts. And of course, this is in addition to 0:04:08.400 --> 0:04:11.280 the savings that a lot of car insures are also 0:04:11.320 --> 0:04:14.160 providing their customers. Due to the fewer claims that so 0:04:14.240 --> 0:04:16.679 many of these companies have experienced over the past several 0:04:16.720 --> 0:04:19.400 months due to sheltering in place, a lot of folks 0:04:19.400 --> 0:04:22.920 are receiving checks or credits directly from their auto ensure, 0:04:23.320 --> 0:04:26.640 completely unprompted. But if you haven't, definitely look into that 0:04:26.720 --> 0:04:30.000 as well. If you're interested in saving some money. And 0:04:30.279 --> 0:04:32.120 we Matt, there's an article I wrote a long time 0:04:32.120 --> 0:04:34.200 ago on the site, but it's still incredibly relevant about 0:04:34.240 --> 0:04:36.840 how to save money on insurance. So for folks that 0:04:37.000 --> 0:04:39.720 want to read more about that, we've got tips like this, 0:04:39.760 --> 0:04:42.640 but even other ones that little known that might take 0:04:42.680 --> 0:04:44.320 you an hour, that are gonna that are gonna save 0:04:44.320 --> 0:04:47.720 you hundreds of dollars every year in perpetuity. So yeah, 0:04:47.800 --> 0:04:50.000 we'll link to that article in our show notes. Yep, 0:04:50.160 --> 0:04:52.960 like we often do, all right, well, let's get onto 0:04:53.120 --> 0:04:54.960 the beer that we're having on the show today. We're 0:04:55.040 --> 0:04:59.240 drinking Zombie Dust by Three Floyd's Brewing. They're out of Indiana. 0:04:59.279 --> 0:05:01.960 Big thanks to listener Doug for sending this one our way. 0:05:02.120 --> 0:05:03.920 Three Floyds has been around a long time, been making 0:05:03.920 --> 0:05:06.160 good beers for quite some time now. Plus this is 0:05:06.200 --> 0:05:07.560 one of those fun ones that have to that it 0:05:07.600 --> 0:05:09.240 kind of has this cult following. Like you hear people 0:05:09.240 --> 0:05:11.400 talk about Zombie Dust and you're like, oh, yeah, zombie does. 0:05:12.440 --> 0:05:14.240 I think when you have a standout name like that, 0:05:14.320 --> 0:05:16.120 it's easy to grab a lot of people's attention and 0:05:16.120 --> 0:05:18.320 it kind of stands out in the crowded beer markets. 0:05:18.560 --> 0:05:20.719 But yeah, excited to share this one with you, buddy, 0:05:20.800 --> 0:05:22.960 for sure. Man looking forward to it. We'll give our 0:05:22.960 --> 0:05:24.560 thoughts at the end of the episode. But Matt onto 0:05:24.560 --> 0:05:26.719 the subject at hand. We're asking the question should you 0:05:26.760 --> 0:05:29.000 repair or a place that old car? And for a 0:05:29.040 --> 0:05:31.680 lot of folks right now there who are self quarantining 0:05:31.720 --> 0:05:35.280 because of the coronavirus, still it continues to to have 0:05:35.320 --> 0:05:38.080 a major impact on our society and on us as individuals. 0:05:38.360 --> 0:05:40.400 There's much less traffic out there on the roads. People 0:05:40.400 --> 0:05:42.000 are leaving their cars in their driveway kind of like 0:05:42.080 --> 0:05:43.960 you do a lot of the time. Welcome to my world. 0:05:45.080 --> 0:05:48.200 Uh And and so hopefully your car is not experiencing 0:05:48.240 --> 0:05:50.040 many issues right now, but it's important for us to 0:05:50.040 --> 0:05:52.080 discuss on this episode if you do have an older 0:05:52.120 --> 0:05:55.040 car that's having more and more issues, well, maybe your 0:05:55.080 --> 0:05:57.760 mechanic is really nice person, but you still don't want 0:05:57.760 --> 0:06:00.280 to become best ease with him or her. And there 0:06:00.360 --> 0:06:02.400 is of course a point where repairing an older vehicle 0:06:02.480 --> 0:06:05.280 no longer makes sense and you'll be throwing good money 0:06:05.279 --> 0:06:07.920 after bad. But many folks make the decision to abandon 0:06:08.040 --> 0:06:10.840 their still solid vehicle based on the desire to drive 0:06:10.880 --> 0:06:14.280 something newer instead of an actual need to upgrade their 0:06:14.360 --> 0:06:17.880 vehicle and and get something that's more reliable. And also 0:06:17.960 --> 0:06:20.039 it's important to note that the cost of upgrading your 0:06:20.080 --> 0:06:22.520 car could blow a hole in your budget, since cars 0:06:22.560 --> 0:06:26.720 are typically the second biggest line item in our budget. Yeah, man, 0:06:26.720 --> 0:06:29.560 that's right, transportations typically second on the list. I actually 0:06:29.600 --> 0:06:32.479 should know if it's second on my personal list, because 0:06:32.520 --> 0:06:35.320 we do drive so infrequently. I bet, like health insurance 0:06:35.400 --> 0:06:37.159 or you know, our health coverage, I'm guessing that probably 0:06:37.200 --> 0:06:39.400 has the second place spot. But I should know that though, 0:06:39.440 --> 0:06:41.520 right I've I've got all the numbers there. I should 0:06:41.600 --> 0:06:43.520 dive into those numbers and share that with you, gay man. 0:06:43.600 --> 0:06:45.720 While you gotta do is like if you care run 0:06:45.720 --> 0:06:47.800 a quick program. I'm sure on your excel and you 0:06:47.800 --> 0:06:49.479 can figure it out. Well, I mean, we we total 0:06:49.560 --> 0:06:51.680 our expenses every year, but I've never actually ranked them. 0:06:51.720 --> 0:06:53.200 And so I don't know why I've never done that 0:06:53.240 --> 0:06:55.520 because I like numbers. I don't know I've set you 0:06:55.560 --> 0:06:59.880 off exactly, but no, I totally agree, man. And as 0:07:00.040 --> 0:07:02.800 the repair costs of owning an old car like they 0:07:02.839 --> 0:07:05.080 will start to increase, and so the question you know, 0:07:05.080 --> 0:07:07.280 we're often asking ourselves is should we keep that car 0:07:07.400 --> 0:07:09.440 or should we ditch it? And so today we are 0:07:09.520 --> 0:07:12.440 going to discuss when you should repair a used car 0:07:12.560 --> 0:07:14.400 and when you should consider getting rid of it and 0:07:14.440 --> 0:07:17.120 opting for something newer. And we'll also touch on how 0:07:17.160 --> 0:07:19.480 to sell your old car and where to go if 0:07:19.520 --> 0:07:22.760 you decide to upgrade. So before we get into kind 0:07:22.760 --> 0:07:26.280 of the finite points, well, a lot of this episode 0:07:26.320 --> 0:07:28.480 is going to dive into those nerdier aspects of things 0:07:28.480 --> 0:07:31.240 that you need to consider when you're you're asking yourself 0:07:31.240 --> 0:07:35.320 this question things like math repair costs exactly. But before 0:07:35.360 --> 0:07:37.080 we dive into the numbers, it's important to address that 0:07:37.120 --> 0:07:39.400 there are a few reasons why it might make sense 0:07:39.440 --> 0:07:42.240 to replace and not repair that old car. Basically, there 0:07:42.240 --> 0:07:45.040 are different personal considerations to keep in mind, and all 0:07:45.120 --> 0:07:48.080 those depend on who you are as an individual and 0:07:48.240 --> 0:07:50.960 what your car means to you. So partly depends on 0:07:51.040 --> 0:07:54.400 what you value. Right. For instance, you might really appreciate 0:07:54.520 --> 0:07:57.120 being the first owner of a vehicle and completely knowing 0:07:57.160 --> 0:07:59.800 the history of a car starting with the first hundred 0:07:59.800 --> 0:08:01.920 mile that you put on it. Right, These are cars 0:08:01.960 --> 0:08:03.480 that are treated like a member of your family. You 0:08:03.560 --> 0:08:05.760 might even have a name for that car, like Scottie 0:08:05.880 --> 0:08:08.600 or Steve, Like j L's got Steve in his garage. 0:08:08.640 --> 0:08:10.400 Yea our friends, our friend j L who came on 0:08:10.440 --> 0:08:13.600 recently and Steve Steve two point out, Or speaking of garages, 0:08:13.640 --> 0:08:15.640 like you might even have a separate room of your 0:08:15.680 --> 0:08:19.280 house dedicated to housing this car, you know, like, if 0:08:19.280 --> 0:08:22.080 you think about garages, it's a house for your car 0:08:22.400 --> 0:08:24.160 that you park in like it's it's it's kind of 0:08:24.160 --> 0:08:26.000 crazy if you think about it, Like how much of 0:08:26.000 --> 0:08:28.080 the percentage of our homes is dedicated to the care 0:08:28.120 --> 0:08:30.640 of our vehicles. And maybe I'm saying all this because 0:08:30.760 --> 0:08:34.640 I don't have a garage, jealous garage envy, but like, 0:08:34.920 --> 0:08:36.520 until I have a garage, I can make fun of it. 0:08:36.559 --> 0:08:39.040 But some people really love their car that much and 0:08:39.080 --> 0:08:41.560 so and so for them having a garage, having a 0:08:41.600 --> 0:08:43.760 place to work on it, having a place to keep 0:08:43.760 --> 0:08:46.120 it clean, it makes a lot of sense. And so 0:08:46.200 --> 0:08:48.280 if you are one of those people who really values 0:08:48.480 --> 0:08:51.680 having a new car, Matt's got a fairly new used car. 0:08:51.720 --> 0:08:54.000 I've got older used cars. But the great thing about 0:08:54.000 --> 0:08:56.760 how we view money is that it's not necessarily the 0:08:56.800 --> 0:08:58.240 worst thing in the world for you to buy a 0:08:58.280 --> 0:09:00.559 new car. If it's something that you value, it's high, 0:09:00.640 --> 0:09:02.680 high up on your priority list, well then we would 0:09:02.679 --> 0:09:05.320 say let your money follow your values. Well, Joel real quickly, 0:09:05.440 --> 0:09:06.840 you know, I think it's worth mentioning. This is why 0:09:06.840 --> 0:09:09.920 we have a nice craft beer on every episode. We 0:09:10.040 --> 0:09:12.400 quickly cover this on our interviews, right like we talked 0:09:12.440 --> 0:09:15.920 about how beer for you and me, uh, craft beer specifically, 0:09:15.920 --> 0:09:17.719 it's a little bit of a splurge. Sometimes we'll get 0:09:17.720 --> 0:09:19.800 some really nice beer. Is that we really enjoyed because 0:09:19.800 --> 0:09:22.160 it's something that we value. And so whereas a lot 0:09:22.160 --> 0:09:24.160 of people are thinking, why would you drink beer like 0:09:24.360 --> 0:09:27.200 water is for free or next to free, you know, 0:09:27.240 --> 0:09:28.920 you get it out of your faucet, like that is 0:09:29.880 --> 0:09:33.000 something that's better for you. This is hot water though. Basically, 0:09:33.000 --> 0:09:35.440 come on, that's what I would say to those people. 0:09:35.440 --> 0:09:38.400 It meets the Bavarian standard of being considered a beer 0:09:38.400 --> 0:09:41.120 in Germany. What is it? There's like a high standard 0:09:41.120 --> 0:09:43.920 to be considered. Uh, it has to include four ingredients 0:09:43.960 --> 0:09:48.920 and maybe only four water, malts and hops, yeast. I 0:09:48.920 --> 0:09:50.720 don't know, something I don't know. Yeah, yeah, we're probably 0:09:50.720 --> 0:09:53.839 gonna get lampoon for for that right there. But but again, 0:09:53.920 --> 0:09:55.640 for us, this is a parallel. This is why we 0:09:55.640 --> 0:09:58.400 spend our money on this because we value it. And 0:09:58.520 --> 0:10:00.000 you know, when it comes to vehicles, even though I've 0:10:00.080 --> 0:10:02.439 never purchased a brand new car or even near new, 0:10:02.559 --> 0:10:04.560 right like, I totally get this line of thinking of 0:10:04.640 --> 0:10:07.040 as far as putting your money towards something you value, 0:10:07.120 --> 0:10:09.840 especially to if you're looking at getting something newer, like 0:10:09.880 --> 0:10:13.000 I understand wanting to have that predictability in the peace 0:10:13.040 --> 0:10:15.720 of mind that comes with being the first owner and 0:10:15.760 --> 0:10:17.800 the only owner of a vehicle, right, Like, you know 0:10:18.160 --> 0:10:20.200 the ins and outs, you know the maintenance history of 0:10:20.240 --> 0:10:22.320 that vehicle. It's something that you can count on. And 0:10:22.360 --> 0:10:24.600 so while I know that it can be just a 0:10:24.640 --> 0:10:26.600 strong sticking point for a lot of people to where 0:10:26.640 --> 0:10:28.320 it's just across the board. You should never have a 0:10:28.320 --> 0:10:31.400 new vehicle or even a newer vehicle. Uh, that's something 0:10:31.400 --> 0:10:33.440 that you and I would push back against. Your money 0:10:33.440 --> 0:10:35.640 should follow your values. And if you value you know, 0:10:35.800 --> 0:10:38.360 having a newer vehicle and it works into your budget 0:10:38.360 --> 0:10:40.640 really well, then that's not something we would follow people for. 0:10:40.920 --> 0:10:43.319 And at the same time, I think car ownership can 0:10:43.320 --> 0:10:46.200 have like this emotional component. That's another consideration that people 0:10:46.240 --> 0:10:48.880 have to make is I know some people have this 0:10:48.920 --> 0:10:52.200 strong attachment to their car, or this strong detachment they 0:10:52.200 --> 0:10:54.320 almost hate their car. And I think sometimes we can 0:10:54.320 --> 0:10:57.240 make a decision because of past history and we have 0:10:57.559 --> 0:10:59.760 a negative emotional tied to the vehicle that we're driving, 0:11:00.080 --> 0:11:01.120 Like I just want to get rid of it. I 0:11:01.160 --> 0:11:03.120 don't care about the finances. I don't care about the 0:11:03.120 --> 0:11:04.880 fact that I'm gonna lose money or that I can't 0:11:04.920 --> 0:11:07.199 really afford it. But this car I'm just so tired 0:11:07.240 --> 0:11:08.800 of it. I'm fed up with it, or they or 0:11:08.840 --> 0:11:10.800 they say I love it, like this is something I'm 0:11:10.800 --> 0:11:12.600 wanting to spend a lot of money on some guy. 0:11:12.600 --> 0:11:15.120 I'm I'm gonna put that four thousand dollar transmission into 0:11:15.160 --> 0:11:17.199 it just because I love this car, even though it's 0:11:17.200 --> 0:11:18.640 not worth it. Right, And so I think we do 0:11:18.720 --> 0:11:20.360 have to step back, and it can't just be an 0:11:20.360 --> 0:11:22.960 emotional decision either way, whether it's a good one or 0:11:22.960 --> 0:11:24.719 a bad one. Yeah. Man, Well, so you know, we're 0:11:24.720 --> 0:11:28.040 talking about these different personal considerations of repairing a vehicle 0:11:28.200 --> 0:11:30.080 or getting a new one. A lot of it depends 0:11:30.080 --> 0:11:31.720 to on if there is a change in what you 0:11:31.800 --> 0:11:33.840 need out of the vehicle, right, Like this might be 0:11:33.840 --> 0:11:35.959 an obvious reason, but what we need out of the 0:11:36.040 --> 0:11:38.880 vehicle it changes over time. It's safe to say my 0:11:38.960 --> 0:11:41.560 old CB five fifty motorcycle, you know, back from my 0:11:41.600 --> 0:11:43.679 bachelor days, that wouldn't really cut it these days with 0:11:43.720 --> 0:11:46.480 the kiddos. Although I have seen little kids with helmets 0:11:46.480 --> 0:11:49.080 on the back of motorcycles as passengers before. Dude, if 0:11:49.080 --> 0:11:50.199 you had all four kids on the back of a 0:11:50.240 --> 0:11:52.800 motorcycle with helmets on, you guys are be in a 0:11:52.840 --> 0:11:55.719 circus or something. Yeah, it really would be like the circus, Like, 0:11:55.720 --> 0:11:58.440 I'm not gonna or you get arrested. Well, that's the thing. 0:11:58.440 --> 0:12:00.920 It's not illegal, Isn't that crazy. There's no age limits 0:12:00.920 --> 0:12:02.840 to how old a passenger on a motorcycle can be. 0:12:03.120 --> 0:12:05.080 So like, I'm not gonna judge anyone, but there's no 0:12:05.120 --> 0:12:08.520 way that I'm going to do that myself. And so 0:12:08.559 --> 0:12:11.040 for us man moving from a small old sedan to 0:12:11.120 --> 0:12:13.440 a vida up station wagon like that made sense for us. 0:12:13.640 --> 0:12:15.199 That was back when we were doing tons of garden 0:12:15.559 --> 0:12:18.160 and yard projects. And by the way, we're driving around 0:12:18.160 --> 0:12:20.600 a baby in a full size Great Dane around the holidays, 0:12:20.640 --> 0:12:22.319 and so like, for us, that was a smart move. 0:12:22.360 --> 0:12:24.959 We couldn't continue to do those things and include those 0:12:25.000 --> 0:12:28.720 aspects into our personal life with that really really old, 0:12:28.840 --> 0:12:31.439 tiny little sedan Great Dane. Even harder to take around 0:12:31.440 --> 0:12:36.280 on a motorcycle. Uh, you gotta do the sidecar, Yeah, exactly. 0:12:36.320 --> 0:12:38.200 You've seen those dogs in the sidecars with the goggles 0:12:38.200 --> 0:12:41.959 in the scarf. Adorable, pretty freaking hilarious, so cute. And 0:12:42.240 --> 0:12:45.320 so I think another personal consideration that people need to take, Matt, 0:12:45.480 --> 0:12:47.080 and this is what we're gonna spend most of the 0:12:47.080 --> 0:12:49.440 rest of the episode talking about is what is your 0:12:49.440 --> 0:12:52.320 specific financial situation. If you've been doing smart things with 0:12:52.320 --> 0:12:54.760 your money your entire life, you're a millionaire, right, go 0:12:54.800 --> 0:12:57.240 ahead and replace that old car for something newer. It's 0:12:57.280 --> 0:12:58.959 likely just to drop in the bucket for you compared 0:12:58.960 --> 0:13:00.360 to your overall net worth. And and that was one 0:13:00.360 --> 0:13:02.800 of the things that Jail mentioned too, just recently, just 0:13:02.840 --> 0:13:06.360 a couple of weeks ago. Was he felt comfortable buying 0:13:06.360 --> 0:13:09.040 a brand new superru Forest or not going overboard. I mean, 0:13:09.080 --> 0:13:11.240 he didn't buy a Bentley or anything like that, but 0:13:11.280 --> 0:13:15.520 he bought a nice new car. And he basically his 0:13:15.600 --> 0:13:18.960 defense for it, Matt was, I'm financially independent, and this 0:13:19.120 --> 0:13:21.520 moves the needle. Not at all on my overall network, 0:13:21.640 --> 0:13:23.400 this doesn't have an impact, but it did with a 0:13:23.440 --> 0:13:26.000 needle when it comes to his enjoyment of life exactly. 0:13:26.040 --> 0:13:27.640 Like they drive around the country all the time when 0:13:27.640 --> 0:13:29.240 they're back in the States, like that kind of thing. 0:13:29.320 --> 0:13:31.480 And he wanted a vehicle with foil drive because he 0:13:31.480 --> 0:13:34.120 had this like steep, snowy driveway. Just all these things. 0:13:34.160 --> 0:13:36.440 It made so much sense for him to actually get that. Sure, 0:13:36.559 --> 0:13:38.320 But like you said it had very little impact on 0:13:38.320 --> 0:13:41.559 his actual financial situation. Yeah, And for our listeners out there, well, 0:13:41.600 --> 0:13:44.120 you might not even value cars all that much, but 0:13:44.160 --> 0:13:46.240 if you're doing really well financially, then you might value 0:13:46.280 --> 0:13:48.560 the convenience of not having to deal with the repairs 0:13:48.559 --> 0:13:51.120 and a maintenance schedule of an older vehicle, and that's 0:13:51.120 --> 0:13:53.480 a real benefit to you, right, And so I think 0:13:53.640 --> 0:13:56.440 our personal financial situations have to be taken into account. 0:13:56.760 --> 0:13:59.400 If like we've talked about matt cars being one of 0:13:59.440 --> 0:14:02.840 the most expensive line items in our budget. Most people 0:14:03.200 --> 0:14:05.840 don't have the free willing cash, aren't financially independent, aren't 0:14:05.840 --> 0:14:07.320 in the place where jail is, and so we have 0:14:07.360 --> 0:14:09.520 to make a decision that makes more sense for where 0:14:09.520 --> 0:14:11.520 we're at financially. And so yeah, I think there's a 0:14:11.520 --> 0:14:13.560 lot of information that we have to kind of get 0:14:13.559 --> 0:14:15.640 out there so people can make an informed decision when 0:14:15.640 --> 0:14:17.720 it comes to repairing or replacing. That's right, man, So 0:14:17.840 --> 0:14:19.680 real quick before the break, I wanted to ask you 0:14:19.880 --> 0:14:23.400 what was your or what is your favorite car of 0:14:23.440 --> 0:14:26.200 all time that you've owned. So it's probably a tie 0:14:26.240 --> 0:14:29.200 between the Nissan Leaf that I'm driving now because it's 0:14:29.240 --> 0:14:31.720 fun and zippy. Yeah, I got the little e V. Yeah, 0:14:31.760 --> 0:14:34.640 but in my first car nine nine Toyota Camry because 0:14:34.640 --> 0:14:36.520 it was a manual transmission. And I gotta say, I 0:14:36.640 --> 0:14:39.800 missed driving a stick shift so bad. So what about 0:14:39.800 --> 0:14:41.360 it do you miss? Just? I mean, it's just fun 0:14:41.400 --> 0:14:43.400 to drive a stick Yeah, it's just the sense of 0:14:43.520 --> 0:14:45.640 act of driving experience, exactly, the sense of kind of 0:14:45.640 --> 0:14:47.880 control you have while you're on the road. I miss 0:14:47.920 --> 0:14:49.800 my care, I mean, and I really do think if 0:14:49.840 --> 0:14:52.120 I hadn't have been involved in like a minor accident 0:14:52.120 --> 0:14:54.080 which basically total the car, I think I'd be driving 0:14:54.080 --> 0:14:56.160 that car to this day. It was such a good car. Yeah, 0:14:56.400 --> 0:14:58.720 you know, I never drove a stick as a primary vehicle, 0:14:58.840 --> 0:15:01.640 but I learned on all my friends sticks, which means 0:15:01.680 --> 0:15:06.840 that I was average at best drive stick shift cars. 0:15:06.880 --> 0:15:09.480 And they can still but well they're so rare though 0:15:09.480 --> 0:15:12.160 they're still they're rare. So your favorite car, okay, Well, 0:15:12.160 --> 0:15:14.640 the most fun car I've ever owned was in college. 0:15:14.800 --> 0:15:17.920 I was driving a nineteen nine, not in eighty nine. 0:15:17.920 --> 0:15:19.240 I was slightly knewer than what you had going on, 0:15:19.320 --> 0:15:23.240 but I had a white Land Rover Range Rover Man. 0:15:23.640 --> 0:15:26.640 This car was the most fun vehicle of all time. 0:15:27.000 --> 0:15:28.600 Just first of all, it was so unique, right, like 0:15:28.600 --> 0:15:30.880 you never saw these on the road. It wasn't very 0:15:30.880 --> 0:15:33.520 practical though at all. One time I was driving out 0:15:33.560 --> 0:15:35.400 on the Interstate and it kind of got like the 0:15:35.440 --> 0:15:37.320 speed wobble thing going on, and I thought, we're just 0:15:37.320 --> 0:15:40.520 gonna flip for like doing nothing like like I didn't 0:15:40.520 --> 0:15:43.520 really swerve or anything, but it just started getting really fishy. 0:15:44.000 --> 0:15:45.400 That might be the time you know that you need 0:15:45.440 --> 0:15:47.320 to replace that whole car, all right, Matt, Well, all right, 0:15:47.320 --> 0:15:50.560 we gotta talk more about the specifics of repairing. What 0:15:50.640 --> 0:15:52.840 are the average repair costs, and how do you know 0:15:53.200 --> 0:15:56.160 where your car fits in and whether your specific car 0:15:56.320 --> 0:15:58.360 needs to be repaired to replaced, And we'll get to 0:15:58.440 --> 0:16:10.040 some thoughts on that right after the break. All right, man, 0:16:10.040 --> 0:16:11.760 we're back from the break and we're talking about whether 0:16:11.800 --> 0:16:15.840 we should repair or replace that old car. And so 0:16:15.920 --> 0:16:17.680 before we dive into the repairs, man, I think let's 0:16:17.720 --> 0:16:20.280 let's touch for a second about financing. Right, if you 0:16:20.320 --> 0:16:22.440 are upside down on a car and you still owe 0:16:22.480 --> 0:16:25.760 money on it, the decision to repair or replace a 0:16:25.840 --> 0:16:28.880 vehicle it becomes a lot more difficult when you still 0:16:28.880 --> 0:16:30.520 owe money on your car, your options are going to 0:16:30.600 --> 0:16:32.760 be more limited, and so the goal here should be 0:16:33.240 --> 0:16:35.520 to get out of debt on your car as soon 0:16:35.600 --> 0:16:38.040 as possible. Once you own it free and clear, then 0:16:38.160 --> 0:16:41.400 you can make an informed, rational decision about upgrading to 0:16:41.480 --> 0:16:44.480 a newer car that might be in better condition. It's 0:16:44.520 --> 0:16:46.800 just a terrible place to be in financially when you 0:16:46.840 --> 0:16:48.560 trade in your old ride and you get into one 0:16:48.560 --> 0:16:50.880 by rolling that old loan into the new one. Uh, 0:16:50.920 --> 0:16:53.000 your interest rate is going to skyrocket, and then you'll 0:16:53.000 --> 0:16:55.600 owe far more on this new loan than that new 0:16:55.640 --> 0:16:58.200 car is even worth. It's just a terrible sort of 0:16:58.240 --> 0:17:00.960 perpetual cycle to find yourself falling into. Yeah, it's like 0:17:00.960 --> 0:17:03.680 a slippery slope. And for folks that don't have a 0:17:03.680 --> 0:17:05.520 paid off vehicle and they're trying to roll that into 0:17:05.560 --> 0:17:09.439 the purchase of the next it is financial armageddon for you. 0:17:09.600 --> 0:17:11.719 For you, if you continue to do that, it balloons 0:17:11.720 --> 0:17:14.120 your payment and if you have issues with that car. 0:17:14.200 --> 0:17:18.200 Then people do this not just once, but sometimes two 0:17:18.200 --> 0:17:21.000 and three times, and and car dealers are more than 0:17:21.040 --> 0:17:23.040 willing to to lend them the money at higher and 0:17:23.119 --> 0:17:25.960 higher interest rates, jacking up that payment. It's just not 0:17:26.040 --> 0:17:28.159