Need to unexpectedly buy a new car - looking for big brain advice

Submitted by JFB187 t3_10p76jd in personalfinance

I hit a curb in my 2011 Legacy because I absolutely needed dog food and a sandwich during a snowstorm in upstate NY. Expensive life lesson.

Dealership quotes $2600 to get it back on the road. KBB values it at $2850 in good condition. Insurance will likely total the car.

I don’t know what to do. I could pay the $2600 and have something else catastrophic go wrong within 24 months due to age and environment. Everything is so damn expensive right now, something new will be at least $380-$415 a month for 6 years minimum. And personally, I’ve always thought of leasing as just throwing money away.

I’m running a retail business and a home business, and had planned on buying my girlfriend a ring this month. Im mentally exhausted and need help from people who are smarter than I am.

What makes the most sense given the state of prices and the economy?

7

Comments

You must log in or register to comment.

phil-l t1_j6j4bft wrote

If the dealership says it will take $2.6K to get it on the road again, a local independent shop can almost surely do it for much less. I'd get it fixed and keep driving.

17

Colorado_love t1_j6p4iuz wrote

This. Never go to the dealer for anything other than warranty work.

2

goblueM t1_j6j0wpl wrote

if insurance is cutting you a check for 2Kish , the no brainer decision is to fix your Legacy and kick the can down the road, while understanding you'll need to start saving for a new vehicle soon

16

JFB187 OP t1_j6j1kg5 wrote

This will be my ideal situation if it’s possible. Thank you!

5

Colorado_love t1_j6p4fn8 wrote

That is a great option. But that also depends on what has to be repaired. The parts can be hard to get right now.

1

theoriginalharbinger t1_j6j2qnn wrote

> What makes the most sense given the state of prices and the economy?

Fix your current car.

Keep a week's worth of supplies at home at all times.

10

SheistyPenguin t1_j6jfbq2 wrote

This is the big brain answer. Broken-down car = extra costs for Uber, grocery delivery, etc.

Also why an emergency fund is important.

0

Colorado_love t1_j6p4oer wrote

I’m not getting the feeling OP wasn’t prepared for an emergency…

1

BoxingRaptor t1_j6j2njj wrote

I would take it somewhere else and see what they quote you. The dealership is very likely ripping you off.

4

Colorado_love t1_j6j3xwe wrote

Get the pay out from the insurance co. Buy a car, WITH CASH. Post on socials, let your friends know, etc and so on what you’re looking for.

It might not be new, it might have a ding or two but it’ll be yours, not the bank’s. Also your insurance premiums will be much lower than they would be on a new car. Especially with these interest rates. And the super inflated prices.

Look for an older used CRV, RAV 4, Tacoma or 4-Runner, even another Subaru. You really cannot go wrong with any of them. They’re all AWD/4WD. Just find one that’s been maintained.

If you need the “tech” parts of a newer car, just buy a new head unit. 😉

Think Granpa’s old RAV 4 or Outback that No one is using since he passed. Ask around. You’ll find something!

I’m in Colorado, so I get it. Those “needs” during blinding snow storms…🥴

We have a newer CRV now but before we had Crystal we had a ‘98 CRV we called The Beast. Bought it used, for $3000 cash and we drove Beastie all over Colorado, Utah, etc.

It was still going strong with over 300k miles when we sold it.

Anyways, we would put snow tires on the old CRV in the winter and we could get to almost anywhere, no problem.

My hubby even picked me up during a massive blizzard that shut everything down because I was stuck at work with the Camry, but “needed” to get home. It’s seriously bad out when they shut major roadways (and even side roads) down in Colorado bc of snow.

So he drove down a “closed” I-25 at 4:30 a.m. and rescued me from an uncomfortable stay at a coworker’s condo. He didn’t slide, get stuck, nothing.

In fact, we’re on the hunt for another older CRV now because it was fun to drive, cheap on gas, easy to fix and would go over these Colorado mountain passes in the winter/spring with no problem.

Get her the ring, not a new ride. Good luck. 🍀

3

JFB187 OP t1_j6j47r7 wrote

This is the life experience I was seeking.

Thank you!!

3

Colorado_love t1_j6p472d wrote

No problem.

One more bit of advice: Don’t even go out and look at new cars. They are not an investment, they’re a major money suck. Plus those salespeople. They’ll tell you one thing and you leave the finance office with a payment $200/mo higher than you were aiming for.

1

ruler_gurl t1_j6jx4mn wrote

Is it otherwise healthy? I've repaired my VW 3 times when the repair has exceeded the value, 2 deer, 1 curb. The first two times insurance cheerfully fixed it. The 3rd time they wanted to total it and actually offered me 1,500 more than the repair would have cost, but I told her it was in stellar condition and asked that it not be totaled. She pushed back and said she'd do what she could but even if it gets totaled, I always had the option of buying it back dirt cheap and fixing it myself. I probably would have come out slightly ahead. But as it turned out they fixed it with a clear title. The carfax must look terrifying though.

If you like it, fix it. If you don't then let them total it and keep it. I don't think it's much more complicated.

3

JFB187 OP t1_j6k22dx wrote

Will need a new timing belt in the near-ish future, and the head gasket is starting to seep. But I really like where your head is at. Thank you!

2

Colorado_love t1_j6p6g68 wrote

Get it all done at once. Find a good and honest mechanic/body shop. You’ll be driving your Subie another 10 years.

I really miss our old cars. 😭

2

ct-yankee t1_j6j79dw wrote

I would not finance a car. Financing a depreciating asset is rarely a great plan if you can avoid it. The car/interest rate market isn't exactly friendly at the moment.

Your insurance may have a network of repair facilities that will give a better quote on the repairs. It is in your interest to have the car fixed.

2

JFB187 OP t1_j6j7gpd wrote

That’s exactly what I was initially feeling. I’ve enjoyed the last three years without a car payment and I was hoping to continue on.

3

Swissgeese t1_j6jqy0b wrote

Good advice on the car. But you need to reconsider the ring. You are currently bit financially stable. Getting married without stable finances could be a bad decision.

2

JFB187 OP t1_j6ju0bi wrote

Appreciate your concern, kind redditor!

Actually, as opposed to most of the postshere on this sub, I’m currently in the most stable and lucrative financial situation I’ve ever found myself in. My long time girlfriend and I both have stable good paying jobs and we’re home owners. I’m just trying to maximize my resources, if you will, and make the best long term decision as far as the vehicle goes given the current price of cars. Reddit generally has some pretty smart people lurking beneath the surface!

1

Colorado_love t1_j6p5wkd wrote

I think the folks posting these types of comments need to re-read the OP.

It seems to me OP is very smart with their money and was asking for advice on what to do.

They had an auto accident. They gave the options they were provided, and asked advice on each one.

That’s smart. Not unstable.

Unstable would be “I got in an accident and I know my premiums insurance are going to go up but should I buy a Range Rover or the new Tahoe? And will they take $500 down so I can use the rest of the payout from my totaled car to get my partner a ring?” OP was total opposite of that analogy.

Smart people wouldn’t go out and buy a brand new car right now. Unless maybe you’re raking in the type of money where you can live in this economy and save up $50k for a basic new SUV or crossover vehicle. Paying cash, of course.

1

kveggie1 t1_j6ku2o5 wrote

Get more quotes and have it fixed. There is a lot of life left in the subaru.

2

CookieAdventure t1_j6lot15 wrote

My daughter wrapped our Subaru around 2 trees. The cost to repair vs value was within $500. The insurance company repaired it.

That said, I wouldn’t have comprehensive on a vehicle that is worth under $3000.

2

in_her_drawer t1_j6l7eww wrote

How many miles on your Legacy? Besides the recent crash, you think it was doing fine? I have a 2011 Legacy, and you're making me worried about mine.

1

Retire_date_may_22 t1_j6ld4mb wrote

Go somewhere other than the dealer and get the car fixed. Don’t buy a new car right now. Prices are going down.

Dealers aren’t the best place to get old cars fixed. Their hourly rate is usually 2 x other shops.

1