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mtvhike

Best strategy for owning cars

mtvhike
6 years ago

What's the best strategy for owning cars?

1. Buy new and keep forever

2. Buy new and trade in before warranty expires

3. Buy CPO and continue as above

4. Lease and buyout at end of least, and keep forever

5. Lease and replace car at end of lease

Of course, "forever" really means until cost of maintenance is too high, and that is my real question.

My first recent car was option 1.: a 1993 Volvo 240 wagon, which I dumped after 14 years with 250,000 miles on it. It needed $5000 worth of repairs at that time

#2 was a 2001 BMW 3-series wagon, purchased as a CPO in 2003. Its warranty ran out in 2010, due to mileage. Started to pay about $3000/year in maintenance and finally traded it in in 2012 for a 2008 BMW 5-series wagon with manual transmission, which I really like and still own.

#3 was/is a 2008 Volvo XC70 for my wife, which we still own. Initially leased, renew the lease, and then finally bought it out. It now has 110,000 miles and yesterday I dropped $3600 on repairs ($1600 of which was brakes).

So both of our current vehicles are 2008 models with about 110,000 miles, and beginning to cost several thousand dollars a year in maintenance. When do I cry "uncle". The real problem is the amount of repair the BMW now needs. Two years ago, everything involved with the video display failed: radio, cd player, navigation, setting of computer options, etc. Also the cruise control failed and the rear hatch started acting flakey. Then the all wheel drive started giving error messages. I lived with it for a year, but last year put $4000 into it to repair everything except the AWD and the cruise, because those would have been another $5000. So I'm planning to finally dump it (even though I love it) and get something else more up to date.

For these modern, high-tech cars, I'm thinking that option 5. (lease and renew) might be the best option, except that I now drive about 20,000 miles a year. Features I really need is AWD. Last weekend, when the XC70 was in the shop and I had a new V60 loaner, I couldn't get up my driveway, because of the snow.

I know this is probably too much information, but I need help!

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