Help us make a financial decision

[Halcyon]

Since I seem incapable of doing anything without the input from the Hive, I figured I would bring a question to you that my DH and I have been wrestling over.

 

We purchased our house 2 years ago, knowing full well that it needed work, and we got a good discount on the house. DH's business has picked up, and recently we have put in wood floors and will be replacing the garage doors this week (hooray!) 

 

We also know at some point we want to redo the kitchen. The kitchen works now, but it is very small and from the 70's so definitely needs some updating. BUT. It actually WORKS fine--appliances are fine, countertops old but acceptable. We have saved some money which we were considering putting into updating the kitchen.

 

BUT.

 

I have a 2008 Hyundai Santa Fe which is just not. a. good. car. DH travels a lot and in the last month, I have had to call AAA 3 separate times because the car wouldn't start. The problem has yet to be diagnosed, but we've managed to get the car started again each time. The mechanic can't figure out what the problem is, but it could be a leak of coolant (??? who knows) My DH rear-ended someone last year in the car (his fault, not the other driver, of course) causing 5000 of damage, which was fixed. Then last week or twoo I was rear ended, so the back is all bashed up. We'll get that fixed, too. The car has 88,000 miles on it, and it definitely wasn't our first choice when we bought it used 4 years ago, but it was all we could afford (we wanted to pay outright and not have a loan). The car just doesn't FEEL that safe and secure, and the fact that it keeps having engine problems...well, to be honest, I'm sick of it. When DH travels and I don't feel my car is reliable, it's not a good feeling. I am out in the woods and a distance from town, and I work so I really need a reliable caar....anyway, you get the drift. I just don't get the sense this car is going to last more than another 2 years, if that, and that we'll always be a little worried about it.

 

So. Given all the above, would you

1) put the money into a kitchen renovation and hang in there with the Santa Fe, dealing with problems as they arise. Of course, there is the concern that we put the money into the kitchen, and RIGHT AFTER THAT the car decides to die...that would be bad.

 

2) buy a reliable, new (to us) car, trading in the Hyundai or selling it (it isn't worth TONS due to the accidents). We have our eye on a nice used Honda Odyssey, but it would put a dent in our savings...but man it is SO NICE!!! LOL. or

 

3) do neither, save the money and have a pretty nice financial cushion (DH has work lined up for over a year, so money should still continue to come in, but he is self-employed, so we always try and be careful.) We've never really had the luxury of a financial cushion, and DH (and I) think it feels pretty darn nice to not worry about the next expense. We would still have a bit of a cushion, about $10,000. 

 

Those are your three options...of course there's a fourth for None of the above, cuz I know the Hive. ;)

[Amira]

Personally, I'd rather deal with a difficult kitchen than a difficult car. I wouldn't put any more money into the car and would be ready to buy a used car when necessary, but I'd try to wait a bit to save a little more money.

[NoPlaceLikeHome]

I would definitely hold off on then kitchen if it is functional unless you have 6 months to a year of emergency savings that you do not need to touch and have current hefty retirement savings IMHO. I understand where you are coming from since we just had to replace our 15 to 20 year old stove which my husband attempted to fix unsuccessfully. I would love to redo our old kitchen and get all new appliances but in reality it is much wiser to use what works right now since ds will be in college in 6 years and dh and I are within 15 years or so of retirement we hope.

[Crimson Wife]

I'd live with the kitchen for now and replace the vehicle. Doesn't make sense to me to keep pouring repair money into a lemon. It's one thing to decide to fix a generally reliable vehicle (we actually put a new engine into our Toyota Matrix a couple years ago because the car was in otherwise good shape) but not a lemon that you don't like.

[Excelsior! Academy]

Is there a way to do both?  A reliable car is a must.  At the same time you can also do a few small cosmetics in the kitchen.  A coat or two of paint, maybe tiling over laminate countertops or even just new mats and towels can get you through for a bit.  If you must choose one, choose the car. 

[mom2att]

The kitchen seems to be reliable, just tired.  The car is not reliable, which is also a safety issue.  Live with the kitchen and get the car.

 

[regentrude]

A reliable car ranks much higher to me than updating a functional kitchen.

 

We finally updated out kitchen counters and floor after living in the house for 12 years. We have been replacing outdated appliances one at a time over the years. I consider a "nice" kitchen a pure luxury.

I would not want to risk being stranded with an unreliable vehicle. I consider  a reliable vehicle a necessity in this country.

[Halcyon]

hey, who gave the topic 1 star  :crying:

[BlueTaelon]

Keep saving but plan to replace the car soon possibly, have you tried a different mechanic?  I had a  touchy starting  car and it was due to the security system. Something about  the gel the signal had to transmit through  from the key to the car. The gel would harden when it got cold outside and the car would think it was being stolen and refuse to start since it got the wrong signal.

[Halcyon]

We are bringing it in for a 3rd opinion tomorrow. Maybe it's fixable for the time being. Another year would be okay. Oh, and we DO have retirment savings and college savings. Not a ton of either, but those are separate from the 10,000

[LucyStoner]

I'd either get the Honda Odyssey or a cheaper but still reliable vehicle.

[lavender's green]

I just hate money-pit cars.  Especially when you look at the numbers and realize you could have bought a reliable used car for the amount of you've spent on recent repairs. :glare:

 

I'd get a reliable car, then focus on a financial cushion, and start thinking about the kitchen once things are nice and comfy.

[Walking-Iris]

Car.

 

My DH should post in this thread. We just bought a new (to us- used) car. And we've unfortunately had to fix a few things. BUT it is still more reliable than our previous vehicle. We feel confident traveling in this one.

 

I also have an older kitchen that I would love to update. But that's a wish not a need. Renovating my kitchen would be aesthetically pleasing...but not necessary. 

 

Coolant leaking---btdt.

 

 

[PeterPan]

I'd replace the car.  You're going to need time to plan your new kitchen, and by the time you've researched it with us and planned everything out, you'll have the money saved to do that too.  :D

[Halcyon]

I'd replace the car.  You're going to need time to plan your new kitchen, and by the time you've researched it with us and planned everything out, you'll have the money saved to do that too.   :D

 

ha, very true. 

[Night Elf]

I once had a car that felt unsafe. I got rid of it as soon as I could. I drive my children in it. I'd be especially worried that something would happen to the car while DH is out of town. That would be my luck. No, I'd replace the vehicle and do the kitchen later if you can save up the money again.

[Snow]

Car. Definitely.

[elegantlion]

I would get the reliable car and wait on the kitchen. Exdh was self-employed most of our years together. We would trade up cars in the good years and do home repairs/remodels as we could.

[ocelotmom]

Car sounds like a safety issue, as well as potentially an even bigger expense if you hold off longer, whereas the kitchen is stable and functional, if not ideal.

[Robin M]

Adding to the chorus - a reliable car is more important.  You can always do minor things to the kitchen such as paint walls, replace backsplash, get new faucet if you want a change. But otherwise, I'd live with the kitchen for now.  We have a 70's kitchen with the orange countertop.  Once painted walls and replaced backsplash, it is quite nice. 

[Critterfixer]

Car.

[Annie G]

My vote was 'other' because your options don't exactly line up with how we'd approach your two problems. 

 

A safe, reliable car is a must. So you do need that, but I would push to find something that would leave you with about $2000 left for the beginnings of a kitchen refresh.  Since your kitchen is functional but just needs updating, you could do much of the work yourself or at least do it a little at a time.  With a $2000 start, you could start with a couple of new appliances or a big part of the cost for new countertops. Then as you save more for the kitchen, do the next part- new dishwasher, replace a window, whatever. Then add a backsplash, new flooring, repaint the room. Doing it a little at a time does drag it out but doesn't take the kitchen out of use for long periods of time. 

 

Unless you're not into doing the reno yourself....in which case I change my vote to #2. g

[Susan C.]

Car. But realize that you usually have to put more money into new used cars. Unless that Odyssey has some kind of guarantee that it is up to date with repairs, then that is a good deal.  And I would trade your car because of its history (and make sure the one you are buying doesn't have a wreck history, check carfax). Honda and Toyota are the best when buying used. We like late 90s early 00s used, fix everything (usually $$) but then just drive. Bonus is low taxes.

[Pawz4me]

Having a reliable car is a non-negotiable thing for me.  I don't care if it's fancy or plain, but it has to be reliable.

[thescrappyhomeschooler]

Buy the Odyssey.  Definitely.

 

[Ethel Mertz]

Car. However, I'd get a used car that is less expensive than a Honda Odyssey. While we loved our Honda Odyssey, we spent a ton on gas as it doesn't get great gas mileage. We now have a new-to-us Mazda 5 (for which we paid cash) that gets great gas mileage.

[Heatherwith4]

Financial cushions are nice, but I could not deal with an unreliable car. So I say - buy the van! :)

[Kathryn]

Car

[Chris in VA]

CAR.

 

Ds was just in an accident--the other guy's insurance paid well. He got a 2004 Toyota for just over 8K. It's been GREAT.

Did you have to swing the whole bill for repairing your car, or did the other person's insurance pay you? Maybe that's enough to fix it up enough to get some back for turning it in--or was it totaled? I'd probably just use the insurance $ to go for a newer car, and then sell the old one to salvage (we got about $800 for our other son's car going that route).

 

I agree with refreshing the kitchen just a bit.

[matrips]

I'd replace the car, but maybe with something other than an odyssey since that sounds expensive.

[EmilyGF]

Something seems wrong if your car is having major problems at 88K... I expect my cars to last at least until 120K, my sister only buys Japanese cars and expects them to last until 200K. We got our Ford Freestar with 60K miles for $6K. We're at 120K now and haven't had any problems yet that were major fixes.

 

That said, don't pour money into a junk car! And, if the kitchen ain't broke, don't fix it (we're in that holding pattern outselves... ugly kitchen that works fine).

[ThisIsTheDay]

hey, who gave the topic 1 star  :crying:

 

I've seen mention a few times that it's easy to accidentally do on an iPad or phone. I would assume no one did it intentionally!

 

I chose neither.  It doesn't sound like you have the money cushion to have the luxury of either option.  If absolutely necessary, I'd get a more reliable car, but I would hesitate to take on any debt at this point if I could.

[texasmama]

A reliable car is a necessity for me.  I could live with a lot of other things to get one.

[J-rap]

Car.

 

We just replaced our 2007 car (with 150,000 miles) and I can't tell you the peace of mind I have now when I drive.  This was a huge deal for me.  A HUGE relief.  We paid for half in cash and took out a loan for the other half so the payments are very small and manageable. 

[Liz CA]

In our house, the car would be replaced before anything was remodeled that did not need immediate attention. If I understand you correctly, even after you get a used car, you would still have something in the neighborhood of $10,000. I would then build on that cushion to make is "cushier" and down the road find ways to update the kitchen.

[MistyMountain]

I would get a reliable car but not an Odyssey at the top of the budget with 2 kids. The kitchen can hold off.

[HS Mom in NC]

I assume your income is reliant on your husband getting back and forth to work.  It sounds like the car you have is, as someone pointed out upthread, a money pit. Get the most reliable inexpensive car you can get. I don't know if that would be an Odyssey or not, but when we buy a car reliability and gas mileage are at the top of the list- do your homework (you probably have, but I said it just in case.)   Since you want to do another expensive project( the kitchen) make sure the car you buy is inexpensive.  Investing in the kitchen will add a lot of value to your house, no car you buy will increase in value.

[ErinE]

Car, definitely.

 

To have so many issues with a car of only 88k miles, I'd get rid of it. Things are only going to get worse as it gets older.

 

We're at the same decision point, between a kitchen and a car that has 140k. We had to replace the engine two years ago, a known (but not to us) risk, and the transmission will likely need replacement soon. The body is still in good condition and we've had very few problems otherwise so we're likely to drive it until it dies.

 

Our kitchen, on the other hand, has had lots of electrical problems that make me really nervous. It was renovated a decade ago, but the wiring is original to the 1970s house and the previous two owners were DIYers with a questionable safety record. We had the whole house (except for the kitchen) rewired, and our electrician said it was a miracle the house hadn't had any issues beforehand.

[chocolatechip]

Definitely I would replace the car. Something is just fishy with a car with that many issues and only 88K - I'd be nervous to drive it for fear it would strand me somewhere! My Toyota Corolla has 273K, but it's still going strong and I'd trust it to take me anywhere. 

 

Like others have suggested, you could consider getting a less expensive, but still reliable, economical car to save funds for the kitchen.

[LibraryLover]

Nothing until the car died, because it looks like it's going to die soon. So...ignore me. You should probably get the car first and see what you have left for the kitchen.

[momto10blessings]

New appliances don't last any time at all, so if you're old ones are working I'd keep them around even if they look dated.

[trulycrabby]

While I hate putting money in depreciable assets, reliable transportation is a must, especially since your DH travels for work. Definitely get a new car.

[MomtoCandJ]

New car, you can always work on the kitchen as money allows.

[Cinder]

Car.

[happypamama]

Being in a similar situation (do we replace my van next year or do necessary-eventually-but-cosmetic-and-livable house repairs?) -- I'd do the car.  It is terrible being stranded with kids, especially if your DH travels for work a lot.

[solascriptura]

Does your cash flow enable you to make monthly payments? 10,000 is not enough for a new car, so that would just be a down payment. I am a big believer in having the largest cushion possible, so I vote for keeping the cushion.

[Just Another Jen]

I voted car too. I hate being stranded much more than using a outdated kitchen.

[Brilliant]

Oh.  I'm the only one who voted for the kitchen.   But after I voted, I read the details on your awful car.  So I don't know.  :confused1:

[Halcyon]

To clarify, if we bought this car and paid all cash, we would have about 10,000 left, maybe a bit more 12,000. Plus more money coming in shortly. But the thing with the kitchen is...well...dh wants to like REDO the whole kitchen. Not just replace the counters or whatnot, but expand it into the dining room and make the dining room smaller...it's not going to be a small job. So there is zero point in doing cosmetic things to the kitchen as it stands because basically, we'll be ripping it out. Yes, DH thinks big. 

 

Oh, and the amount we would have does NOT include the money I have made and saved from my job, which as far as i am concerned, is untouchable unless it's a true emergency. That's about 10,000. That's our "super emergency fund", so to speak. I didn't mention it because it really isn't meant to be touched.

[chiguirre]

Car--but avoid the Honda Odyssey. I had one that became a money pit at 100K miles. Even before that, it required a lot of medium-sized repairs. OTOH, I have a Hyundai Veracruz that's only been in the shop twice, once for a repair and once for a recall. Both were totally free because of the warranty. So, of course, ymmv. But I'd hesitate to buy a Honda Odyssey.