WWYD? New transmission or car payment?

[speedmom4]

Hello Hive,

 

I hope you all can help me make a decision about my van. I have a 2001 Honda Odyssey. We bought it new and it now has 167,000 miles. The transmission was replaced by Honda soon after we bought it and now we are having issues with it again. We just spent a thousand dollars on a new alternator and other maintenance. Right now my van is ok to drive but we will have to make a decision soon about how we will proceed. We can either replace the transmission which will be about $3,000-$4,000. The mechanic actually recommended not doing that because my van is not worth much. Or we can get a new van.

 

My problem is that we don't believe is having debt if possible. The only debt we have is the mortgage on our house. I have been saving money for a new vehicle but it is far from enough to buy something new or newer. I hate the idea of having a car payment but I also hate the idea of putting so much into a vehicle that isn't worth much. I can pay for the new transmission, no problem, but the point of investing money into it is concerning.

 

If you were in this situation WWYD?

 

Thanks,

 

Elise in NC

[aggieamy]

I'm in a very similar situation. My Volvo transmission is having real problems and it'll cost $5k to fix it. The car is probably only worth $7k.

 

The plan DH and I came up with is:

 

Keep driving it until it completely dies - you might get a year out of it. If we have enough saved for a decent used car when it dies then we'll buy that, if we don't we'll replace the transmission and keep saving for a new vehicle.

 

Stupid car repairs!

[rwjx2khsmj]

We are in the same situation. My 2002 minivan has 250,000 miles on it. I haven't had a car payment in many years. I have no intention of having another. I'd much rather spend $3000-$4000 for the van I have than $30,000+ to replace it.

[Jennifer in MI]

When I have to make these decisions about my car I think of it in terms of how long it would have to last after it is fixed for me to feel I got my money's worth.

 

My last car payment was $400/month. So, for a $3000 repair, I'd want it to last $3000/$400, or at least seven months. This doesn't include the cost of the additional insurance you'd need if you bought a new car. (Does this make sense? I'm not describing it well . . . )

 

Does your mechanic think you could get another seven months out of the car after the repair?

[vonfirmath]

When I have to make these decisions about my car I think of it in terms of how long it would have to last after it is fixed for me to feel I got my money's worth.

 

My last car payment was $400/month. So, for a $3000 repair, I'd want it to last $3000/$400, or at least seven months. This doesn't include the cost of the additional insurance you'd need if you bought a new car. (Does this make sense? I'm not describing it well . . . )

 

Does your mechanic think you could get another seven months out of the car after the repair?

 

Wow. This way actually makes even pricy repairs sound more affordable. 7 months?! That's relatively easy to acquire!

[aggieamy]

Wow. This way actually makes even pricy repairs sound more affordable. 7 months?! That's relatively easy to acquire!

 

New vehicles are so expensive compared to a nice paid off jalopy. Buying a new (or even used) car will cost you sales tax, increased personal property tax, and increased insurance. I'm not against getting a newer vehicle I just want to make sure if I'm buying one I'm not making a car payment on top of all the other expenses that come with it.

[eclecticschooler]

Also, don't forget about sales tax on new cars, property tax and costly insurance. It has made us appreciate cars a few years older.

[Guest brookshanes]

Hello Hive,

 

I hope you all can help me make a decision about my van....

 

If you were in this situation WWYD?

 

 

My wife Jen and me were in the same sitch. Had a 2001 Toyota Sienna, ran well. Just got real old. Lots of repairs kept piling up. Had to decide what to do - now that we had six children. We decided to go with the "Millionaire Next Door" advice: buy a vehicle 3-4 years old. It's cheaper than the "on the lot" price, and it's not old enough to be ready to break down.

 

We bought a 2008 Honda Odyssey last year, with monthly payments; a warranty lasted nearly a year, and I'm sure some things will break, but so far, we are very happy and feel it was wise.

 

EDIT: I have always owned OLD cars - Volvos, mainly, and always had the "buy old and pay for repairs" motto. That was nice, but with a wife and 6 children, it's better to not get caught on the highway in the middle of Iowa in the winter because I want to repair instead of pay monthly.

Edited October 11, 2012 by brookshanes
adding more info

[TranquilMind]

Hello Hive,

 

I hope you all can help me make a decision about my van. I have a 2001 Honda Odyssey. We bought it new and it now has 167,000 miles. The transmission was replaced by Honda soon after we bought it and now we are having issues with it again. We just spent a thousand dollars on a new alternator and other maintenance. Right now my van is ok to drive but we will have to make a decision soon about how we will proceed. We can either replace the transmission which will be about $3,000-$4,000. The mechanic actually recommended not doing that because my van is not worth much. Or we can get a new van.

 

My problem is that we don't believe is having debt if possible. The only debt we have is the mortgage on our house. I have been saving money for a new vehicle but it is far from enough to buy something new or newer. I hate the idea of having a car payment but I also hate the idea of putting so much into a vehicle that isn't worth much. I can pay for the new transmission, no problem, but the point of investing money into it is concerning.

 

If you were in this situation WWYD?

 

Thanks,

 

Elise in NC

 

Well, I bought a virtually new van from an elderly man who never drove it much, for $8000 cash. Not a Honda though, but has been trouble free for the last couple of years. It was immaculate inside and out, full power, all leather. Ugly color though, but who cares? I paid cash. It tells me what is playing on the radio and dings if I accidentally leave my lights on. Works for me.

 

So I'd scour Craigslist daily and see if you can find a deal like this. They are out there (along with scams, so you have to be careful and wise).

 

I love buying cars from elderly people! They take very good care of them and don't drive much.

 

I'd probably not want to put more into a vehicle with 167K miles on it, honestly.

[TranquilMind]

Keep driving it until it completely dies - you might get a year out of it.

 

Ha. This is what I do.

 

So far, the vehicle has died at a strip mall once. My husband had to come get me and I had the Kidney Foundation tow it off.

 

Another time I was totaled completely by a bump on the side at an intersection. Cars are built like cardboard today. Sold it to a dealer for scrap.

 

Final time, I was a Trader Joe's. The car had been scary all afternoon, and my heart had been pounding when I was driving, because the brakes were becoming intermittent. At TJ, when I restarted it after shopping, it just went haywire, with everything flashing and freaking out on the dashboard. I told my husband that this car was officially done (12 years old and a Chrysler!) and we were donating it and to come get me.

 

He always listens to his wife. Now he is driving a nice Toyota.

[CheerioKid]

We had a 2004 Sienna that we bought new and totally trashed....after making the payment each month, we couldn't afford any maintenance on it other than oil changes about every 10K miles. We tried to catch up on some of it once dh got a good job (after 4 years of famine), but the transmission had never been serviced (245K miles) and the repair shop wouldn't touch it. By then the cosmetics were beyond shot....

 

only one hubcap

3rd row seat had been mildewed and completely discarded

all the seatbelts were frayed

remotes didn't work any more

front bumper was held on by screws

dash was cracking

carpet was so mucked up it could not be cleaned

big dent in the back gate

neither sliding door worked properly

one of the windshield sprayers was snapped off

drivers arm rest was busted

the cd/cassette player didn't work anymore

tires needed replaced

the whole van shook over about 55mph

a/c needed recharging

...and I know I've forgotten half the list by now.

 

Anyway, we traded it for another 2004 Sienna, with half the miles and in immaculate condition. We financed less than $9000 for 12 months (26 bi-weekly payments) and then we'll be debt free. It was the only option. We are SO glad we did it.

 

There's no way that old van would have ever been worth even a fraction of the money we needed to spend on it to make it fit our needs. It's great to have no car payment, but even that has it's limit sometimes. I do still insist that we will never have another NEW car payment.

[QueenCat]

I'd get rid of the car & get a new one.... at that age, it is only the beginning. I am gratefully reminded how happy I am to not live in state with annual property taxes on cars! Don't miss that one bit.... every car is $55/year for annual registration, regardless of age, make, whatever.....

[Carol in Cal.]

Hondas run for a long time. I would check whether there is a recall that applies to the transmission repair--it is ALWAYS worth checking that. And either way, I would fix it. A new car will be very expensive.

 

However, I would also start looking for a very good used car. It takes quite a while to find one, and giving yourself some leadtime would be wise. That way you have a back up vehicle. My view is that when you drive old cars (which I always do), you need to have a backup if possible. We have probably saved several hundred thousand dollars over the years with this strategy. The last time we purchased a new vehicle was 1989.

[Mommyof4ks]

When I have to make these decisions about my car I think of it in terms of how long it would have to last after it is fixed for me to feel I got my money's worth.

 

My last car payment was $400/month. So, for a $3000 repair, I'd want it to last $3000/$400, or at least seven months. This doesn't include the cost of the additional insurance you'd need if you bought a new car. (Does this make sense? I'm not describing it well . . . )

 

Does your mechanic think you could get another seven months out of the car after the repair?

 

:iagree: My 2003 Honda van will likely need a new transmission in a year or so, and given that we have never had any repairs on it we have more than gotten out money of it, and a new one would cost so much in terms of payments and insurance that fixing it is well worth it. We do not want any more debt either, and my van is like a member of the family. :)

[cjzimmer1]

Hondas run for a long time. I would check whether there is a recall that applies to the transmission repair--it is ALWAYS worth checking that. And either way, I would fix it. A new car will be very expensive.

 

.

 

Honda Odyseys with model years 1999-2004 are KNOWN for bad transmissions. Honda did do repair work but it had to be within 8 years or a certain mileage. Hers is out that range.

[TammyS]

First off, if you want to be debt free, you shouldn't think of vehicles in terms of value, because ultimately they don't have any. They are ALWAYS decreasing in value. If you put $3000 into an old vehicle it's decreasing in value and if you put $3000 in a new vehicle it's decreasing in value. All money into a vehicle is lost money. The only thing that you ever get for that money is usage. The real question is, what is it costing you to drive per period of time (you can think of this monthly or yearly, as you prefer)?

 

Will it cost you less over the next year to buy a newish van or to replace your transmission? That depends on the condition of your motor and the body of your vehicle. Most of the time, it pays to repair rather than replace, because the longer you keep a vehicle, the less it costs to drive it. BUT, if your engine is getting ready to go soon, or if your vehicle's body is in very, very bad condition, then it might not be worth it, because you will be spending the cost of those payments into an older vehicle.

 

Here's the deal, if your van's body is in good, solid condition, it's worth it to replace the transmission. The motor might very well go another 50K. That's at least a couple YEARS of driving. Even if the motor blows, you could probably put a NEW motor in for 4-5K, or less. So then you have a solid body with a new tranny and motor for under 10K. You can't beat that with a stick. But if the body is weak (which will depend a lot on where you live, how much road salt it's gotten, and it's original quality), then it's probably not worth it, because you're going to end up dumping a lot of money into misc body/chassis issues.

 

I would find another mechanic, BTW. $1000 to replace an alternator is retarded. That shouldn't cost more than $250. Alternators are generally $89-$120, plus an hour of labor.

[cjzimmer1]

Hello Hive,

 

I hope you all can help me make a decision about my van. I have a 2001 Honda Odyssey. We bought it new and it now has 167,000 miles. The transmission was replaced by Honda soon after we bought it and now we are having issues with it again. We just spent a thousand dollars on a new alternator and other maintenance. Right now my van is ok to drive but we will have to make a decision soon about how we will proceed. We can either replace the transmission which will be about $3,000-$4,000. The mechanic actually recommended not doing that because my van is not worth much. Or we can get a new van.

 

My problem is that we don't believe is having debt if possible. The only debt we have is the mortgage on our house. I have been saving money for a new vehicle but it is far from enough to buy something new or newer. I hate the idea of having a car payment but I also hate the idea of putting so much into a vehicle that isn't worth much. I can pay for the new transmission, no problem, but the point of investing money into it is concerning.

 

If you were in this situation WWYD?

 

Thanks,

 

Elise in NC

 

 

Well if you substitute 2002 for your 2001 and 112000 miles for your 167000 miles, you would almost be describing my situation to a T a month ago.

 

We had a few other issues (like expecting baby #6 who would no longer allow the whole family to fit at one time and we owned a second 7 passenger minivan).

 

During my research it seems that if you replace the transmission, you should NOT use another Honda transmission as it is likely to fail again. Two brands were recommended (Jasper and I'm drawing a blank on the other at the moment). You will have to have a trusted independent mechanic do the work because a Honda dealership will only use another Honda transmission. Go to www.odyclub.com and you can research your model year and problems that typically occur. They were a great source of info when we were researching.

 

We ended up taking out a loan (but we didn't buy a minivan because we just couldn't afford the payments and since we did have a 2nd one we bought a car so we could reduce DH's commuting cost) We didn't want a loan but with 0.9% interest, the car will cost us $250 of interest if we take 5 years to pay it off. My plan is to have it paid off in 15 months so our interest cost will be under $100. While it would have been nice to have paid cash up front, the "cost" of borrowing is low enough that we were willing to take it on.

[JeanM]

We have a 2000 Odyssey that has a lot of miles, I think it's around 215,000. Our mechanic told us 1.5 years ago that the transmission was starting to go. We're still driving it! Good luck with your decision, we're keeping an eye out for used Odysseys that are reasonable.

[boscopup]

When ours gets to that point, we usually replace it with a slightly newer used van. While we own a vehicle, we put back the same amount as a car payment, so that when we need to replace the vehicle, we can pay cash and usually get an upgrade.

 

Is the '01 Ody even worth the cost of the transmission?

[Tammyla]

I live in a state that taxes everything...New car until it's paid for costs hundreds and hundreds more a year than one that is paid for. :tongue_smilie:

 

I'd go for driving it until it dies or pay for the repair if it would last, but the repair bill would sting.

[LMA]

Car payment, but look for something that is about 2 years old. Look out of state. My bil finds all these fabulous 2 year old cars, such as dealer cars, at excellent prices, but he looks online and wheels and deals on the phone.

[Wabi Sabi]

I was in your exact situation with my 2001 Odyssey and I decided to get rid of it. After a little research I discovered that even when the transmissions are rebuilt they still tend to fail again (which, of course, is exactly what you're experiencing seeing as your Odyssey is already on its 2nd transmission.)

 

FWIW, I took my time looking and found a GREAT vehicle for only $3k cash. That's less than the cost of a new transmission AND I still can sell the Odyssey as-is to offset some of the cost. It's an older truck (1997 Suburban with only 130k miles- less than the Odyssey!) but was owned by a mechanic who babied it and didn't really drive it all that much. It might take some time and patience, but with a little looking you can probably find something used for the same amount or less than the cost of a new transmission.

 

I figure I can sell the Odyssey as-is for $2k meaning that the Suburban only cost me $1k. (Still need to do that though, the Odyssey is currently just sitting in the driveway, LOL!) I'm confident that I'll be able to drive it for at least another 2-3 years with nothing other than normal, routine maintenance. Not bad for what is ultimately a $1,000 vehicle!

[Wabi Sabi]

Also, when the transmission on my Odyssey started to go? Since the value of the vehicle was already so low I made the decision to just keep driving it until it went out entirely. Even with the problems we made it almost TWO FULL YEARS before it finally got to where finding a replacement vehicle was absolutely necessary. With that in mind, my vote is continuing to drive that sucker into the ground while you continue to save money for its eventual replacement.

[JudoMom]

When I have to make these decisions about my car I think of it in terms of how long it would have to last after it is fixed for me to feel I got my money's worth.

 

My last car payment was $400/month. So, for a $3000 repair, I'd want it to last $3000/$400, or at least seven months. This doesn't include the cost of the additional insurance you'd need if you bought a new car. (Does this make sense? I'm not describing it well . . . )

 

Does your mechanic think you could get another seven months out of the car after the repair?

 

:iagree:

[speedmom4]

Thank you to everyone who replied!! I really appreciate it. I'm leaning toward waiting to repair the transmission when it is necessary. My mechanic said it wasn't something that needed to be done ASAP.

 

When I have to make these decisions about my car I think of it in terms of how long it would have to last after it is fixed for me to feel I got my money's worth.

 

My last car payment was $400/month. So, for a $3000 repair, I'd want it to last $3000/$400, or at least seven months. This doesn't include the cost of the additional insurance you'd need if you bought a new car. (Does this make sense? I'm not describing it well . . . )

 

Does your mechanic think you could get another seven months out of the car after the repair?

 

This makes total sense to me. That's a very practical way of looking at the cost of repairs vs. replacing. It's purely mathematical! I think if we have a new transmission replaced we will at least get a couple more years out of it.

 

First off, if you want to be debt free, you shouldn't think of vehicles in terms of value, because ultimately they don't have any. They are ALWAYS decreasing in value. If you put $3000 into an old vehicle it's decreasing in value and if you put $3000 in a new vehicle it's decreasing in value. All money into a vehicle is lost money. The only thing that you ever get for that money is usage. The real question is, what is it costing you to drive per period of time (you can think of this monthly or yearly, as you prefer)?

 

Will it cost you less over the next year to buy a newish van or to replace your transmission? That depends on the condition of your motor and the body of your vehicle. Most of the time, it pays to repair rather than replace, because the longer you keep a vehicle, the less it costs to drive it. BUT, if your engine is getting ready to go soon, or if your vehicle's body is in very, very bad condition, then it might not be worth it, because you will be spending the cost of those payments into an older vehicle.

 

Here's the deal, if your van's body is in good, solid condition, it's worth it to replace the transmission. The motor might very well go another 50K. That's at least a couple YEARS of driving. Even if the motor blows, you could probably put a NEW motor in for 4-5K, or less. So then you have a solid body with a new tranny and motor for under 10K. You can't beat that with a stick. But if the body is weak (which will depend a lot on where you live, how much road salt it's gotten, and it's original quality), then it's probably not worth it, because you're going to end up dumping a lot of money into misc body/chassis issues.

 

I would find another mechanic, BTW. $1000 to replace an alternator is retarded. That shouldn't cost more than $250. Alternators are generally $89-$120, plus an hour of labor.

 

I really like your POV about how cars are always decreasing in value. I can put money into an older vehicle that is decreasing in value or a newer vehicle that is decreasing in value.

 

The $1000 was for the alternator and brakes, rotors, etc. The mechanic used genuine Honda parts. My dh researched this himself and the prices match up with what the mechanic charged us.

 

Thanks everyone! I'm going to continue to do some research. I have a little money saved for a newer vehicle but I'm going to start paying myself a car payment.

 

God Bless,

Elise in NC

Edited October 11, 2012 by speedmom4
typo

[TammyS]

Thank you to everyone who replied!! I really appreciate it. I'm leaning toward waiting to repair the transmission when it is necessary. My mechanic said it wasn't something that needed to be done ASAP.

 

Ooooooh! That changes everything! It could be months or years before it goes completely!! At the price tag that he's quoting there is NO reason to do it until the transmission falls off! You might decide to buy another vehicle by then!

[KathyBC]

I was in your exact situation with my 2001 Odyssey and I decided to get rid of it. After a little research I discovered that even when the transmissions are rebuilt they still tend to fail again (which, of course, is exactly what you're experiencing seeing as your Odyssey is already on its 2nd transmission.)

 

I just thought to point out that $3000-$4000 should be a brand new transmission. A rebuild would be about 1/2 that.

[Wabi Sabi]

I just thought to point out that $3000-$4000 should be a brand new transmission. A rebuild would be about 1/2 that.

 

I have the exact same vehicle and have called at least twenty different transmission shops. My lowest quote has been $2,700 and the highest (the dealership, of course) was over $5k. Also, you cannot get a "new" transmission for this vehicle, all of these quotes were for a rebuild.

[Jpoy85]

I have the exact same vehicle and have called at least twenty different transmission shops. My lowest quote has been $2,700 and the highest (the dealership, of course) was over $5k. Also, you cannot get a "new" transmission for this vehicle, all of these quotes were for a rebuild.

 

very true and if you had a reliable mechanic friend who could go to the junk yard with you- you might be able to find a tranny for even cheaper than that.

[KathyBC]

Sorry, just to clarify what I meant: when people talk about a rebuilt tranny, in my (obviously very limited) experience, they are referring to having their own tranny rebuilt, as opposed to purchasing a 'new' one, however the word 'new' might be defined.

 

Glad you found a good solution to your problem.

[Sctigermom]

I don't like the idea of having a car payment either (we have been car payment free for 1.5 yrs now), but sinking a ton of $ into a car that isn't worth it is not a great situation either. If it were me then I would buy a newer used van and work really hard at paying it off asap.

[lauracolumbus]

My brothers buy their Hondas and Toyotas with that kind of mileage. They easily drive them for another 150k miles. I would think that after putting in a transmission, most repairs afterwards would be relatively minor.

 

Our current Sienna is a 2001 and seems like it could go on forever.

 

However, I loathe driving in a car that I think could break down on me (happened all the time when I was young and poor). So, I drive a 2011 Odyssey, while dh plugs along in our 2001 Sienna.

 

Laura

[Twinmom]

Didn't read the whole thread so I don't know if this has been mentioned yet, but the 2001 Odyssey is known for having transmission problems. There was something wrong with the manufacturing in that model year that was corrected in later years. We just replaced our 2001 that was about to need its second transmission at about 150,000 miles...were in a very similar situation as yours and were advised that there were no guarantees it would not just blow again. The dealer was pretty upfront with us about the issue and cut us an excellent deal on a newer model (2010) as a result. Car payments stink, but so does buying a 4,000k transmission and having it blow out with a few road trips...

[jen3kids]

i have a 2001 Odyssey that had the transmission replaced way back at the recall.

 

It now has nearly 182,000 miles on it and is still going strong. Recently, I've had to get a new alternator, rear heater core pipe and it sounds like my power steering is going. I also need new rear tires.

 

I recently switched to a family-friend mechanic from the Honda dealer and I'm much more comfortable with his recommendations. I know he'll be honest with me when the time comes to say good-bye to the van. I'm hoping to get another 3 years out of it, but we'll see.

 

So, my non-mechanic advice is to drive it till the transmission goes and then see what is available for the cost of a rebuild/new one. If the rest of the van is still in good shape and the transmission cost is not outrageous, stick with the van.

[LibraryLover]

I'd fix it. That car can get 250k miles +.

 

Repairing it (in this case) would be much less costly in the long run than car payments.

[tex-mex]

I'd buy used over a new car -- for cash. But that is what my MIL taught us. She would drive the old car (OP's car) 'til it died and then buy a used car for whatever her savings offered. No monthly car payments! :D

[Denisemomof4]

New vehicles are so expensive compared to a nice paid off jalopy. Buying a new (or even used) car will cost you sales tax, increased personal property tax, and increased insurance. I'm not against getting a newer vehicle I just want to make sure if I'm buying one I'm not making a car payment on top of all the other expenses that come with it.

 

Also, don't forget about sales tax on new cars, property tax and costly insurance. It has made us appreciate cars a few years older.

 

Property tax on a CAR? We don't have sales tax in NH and property tax is for home/land. Oh, we make up for it.....:glare:

[Denisemomof4]

Oh, and for me, I would definitely get the new car. I am waaaaaay too uncomfortable at the thought of being stranded or driving smething unreliable. It's not wise financially but it is what I've done since I got my first new car at 16. I also never owned a car which had over 100k miles but am planning to d so this time.

 

I would rather have a car payment, increased insurance costs, and peace of mind. Especially being that my car is the FAMILY car.