My question is: Should I tough it out and shell out the money for all that the car obviously needs or would it be better to purchase a new car if I can pay it off within a year or less than two years?
Is it worth the trouble of maintenance than buying a new vehicle?
As a general rule, keeping and maintaining a used car is cheaper than buying a new car.
Consider, a new car will cost you a couple of thousand in a down payment and then $300-$500 a month in payments. You will also be paying higher insurance and registration taxes on the new car. Finally, although you have put a lot of money in the old car, you won't get that much out of it because it is a 9 year old car (unless you are a master negotiator when using it as a trade-in).
Unless you old car is a real lemon, and reliability is a real issue, you are still better off financially keeping the old car running. Keep the VW, but put away money into a car savings fund. Then, when the car gets to the point of being too unreliable, you have have more for your down payment.
Is it worth the trouble of maintenance than buying a new vehicle?
lucky for you to be able to pay off a new car in less than 2 years... get rid of the headache.. trade it in..
If it was a better car I would say get it fixed. but VW has a bad reputation for being problem cars. So get something better. A new car is not always something better either.
Maintenance is cheaper than buying a new car. Can be worth the extra money for peace of mind and less hassle though.
Good timing. Consumer reports just today came out with a story on how people who keep their cars and drive them into the ground (300,000+ miles) will save an average of $33,000.
Think about this. Will your Passat, at its very worst, cost you $300 to $400 a month? That's what you'll be shelling out for a new car, not to mention the increased insurance premiums.
A NEW car is mostly a materialistic thing. If the Passat functions for you keep it and save some moolah.
If your income barely supports your lifestyle then the older vehicle with all of its maintenance needs may be better. Even if you had to make on average $1000.00 in repairs each year, you would be shelling out a lot less money in a year than if you were making a $200.00 monthly car payment.
However if you are making way more money than what you need to support your lifestyle, you might want to avoid the irritation of the clunker and its needs and spend the money for a new car.
The car you already own is ALWAYS the cheapest car you can own. Even with all the repairs you mentioned it's a mere drop compared to the cost of a new car. Remember, when your tires touch the curb at the dealers lot you lose at least 15% (!) of the value of your 'new' car. A '98 vehicle will also be MUCH less to insure vs an '08.
Me thinks you have new-car fever.......
