We have a 2006 truck and a 2001 car.  Its quite possible the 2001 car will hang in there for a few more years, but with the price of gas I think we seriously need to consider another smaller vehicle for my husband's work commute.  We''ll have to consider the extra insurance and upkeep of course.

But, do you think with the price of gas and the economy, that having a nice new car will still be a sign of good wealth?  I personally am seeing smaller cars on the road these days.    I saw a lovely older VW small van today.  You could tell it was in immaculate condition.

We always drive our cars until they can be donated to a local charity, but was wondering if in the next couple of years folks won't be trading in every 2 years and that they may want to finally pay off the car and enjoy no car payments until their car kicks over?

Do you think folks will lean towards maintaining what they got, and keeping them longer?

onequarterdal:

Do you think folks will lean towards maintaining what they got, and keeping them longer?

That's what I do - I find maintenance to be much cheaper, and easier to schedule, than repair work - but I know plenty of people who don't think that way.  My last car lasted 12 years, and would have lasted longer if I hadn't been rear-ended; when the repair estimate is higher than the value of the car by a factor of 4, it's time for a new (or at least different) car.  I quite enjoyed not having a car payment, and I'll enjoy it again when I'm done paying for this one (but it is a no interest family loan, so I really can't complain too much).  I will maintain this car as I did the last one, and drive it until the upkeep costs more than replacing it - it's a Toyota, so I expect it to last a while; I'm hoping to go past the 12 years the last one lasted.

Do I expect other people to do that?  I don't know that I do.  My father had a Pontiac that he drove for 12 or 13 years and then decided to buy a new one (it was a new car, or several thousand dollars repairing the old one); it took him some time to convince the dealer than he wanted to buy it, and wasn't planning to trade it in within several years - and that was after the dealer saw his old car.  I think that a lot of people who don't think about it carefully will buy a newer, more fuel-efficient car, and will drive it same way they drive whatever they have now, and under the same assumptions, that newer is better, and in a couple of years (or 3 or 4) they'll trade it in on something else.  The change I do see is that more people will buy smaller and/or more efficient cars - but I don't see the frequency changing.

I had every intention of keeping my Aveo at least 10 years, longer if possible, and kept maintenance up on it.  Now I'm looking at an 07 Ford Focus that was in a fleet.  It will be new to me, but not new off the lot.  That seems silly to me now.  I want something that I can pay off quickly and use the funds to build my savings and prepare for the future when the car needs maintenance and/or replacement.  My parents have a 94 Ford Escort with less than 100K (purchased new) and an 00 or 01 Chevy truck they use for their business which may have finally passed the 100K mark (purchased used).  After my dad couldn't drive his 94 t-bird he gave it to me and I drove it until it was over 11 years old, had 160K on it, and needed $5K of work put in it to keep it going.  I had a 1 year old and didn't think that was a wise decision so I sold it to a guy who could use it for parts on his t-bird and I bought a new car, the Aveo which is now totalled.  As a child I remember my dad had to have a new car every 2 or 3 years but I'm glad he's outgrown that!  LOL

I'll continue to maintain my 1998 Toyota Corolla until it costs more to fix her than to do payments on a "new" vehicle. Right now she's still worth about $4k since I have low mileage (115k) and good-great body condition (very little rust for being in WI). I would love to go with a new Prius but that is way out of my price range. Yaris is closer. I will be going more green as far as gas mileage. I wouldn't mind a Smart Car but haven't priced those out... Toyota is suppose to be doing a same kind of car coming out in 2010. (I am single with no kids in future so would make sense for me). So by the time "my baby" is dead, the New cars of today will be used and cheaper.

I guess some people will keep buying cars the way they have in the past but moving to smaller cars. I think the market for big cars will always be there though because some people are either wealthy enough to pay $10/gallon and/or drive so little they don't care about mpg. The guy who only drives 4k miles a year probably doesn't know or care what his mpg is.

We'll keep the truck and car we have until they wear out and consider our needs and such then. Barring accident or theft we'll have them for 15-20 years. They're both '03 models bought new, the truck has 52k miles on it, the car 72k miles and where I come from that's just broken in. Both are also garage-kept and meticulously maintained so they still look new.

Well, whenever dh and I see a new car we automatically think: stupid tax and BAD investment--a new vehicle is the fastest depreciating investment easily available!

We drive a '93 Honda Civic with 180k and a '01 S10 with 140k.  Have no intentions of replacing them anytime soon, although I would bet the truck gives it up before the Honda.  

DRIVE FREE RETIRE RICH

My financial advisor says, "Debt is dumb, cash is king, and the paid off home mortgage is quickly replacing the BMW as the new status symbol in America."

Walt34:

Consumer Reports did a short review of the "Smart Car" and concluded it wasn't so smart.

I was fooled for a minute or so thinking that if the car is VERY small, it MUST be getting good gas mileage.  I was really surprised when I looked into that "SMART" car and saw that it didn't get super high gas mileage. 

I think that the people that can truly afford (not just live hand to mouth to afford) the hummers now won't worry about MPG and will continue to buy these cars as status symbols.

I'm going to go ahead and pay off my suv (I already have another one that is paid off) and start throwing that car payment money into an account so it will be there when my cars die.   

Smarts for the USA don't get good gas mileage due the "environmental" overhaul that our very restrictive emissions laws forced upon the manufacturer. Talk about ruining a great fuel efficient car!

MY father lives in Europe for about 1/2 of each year and Smarts are all he has ever driven--very high mileage with the original Smart design.  

My late father was a class A licensed mechanic, immigrated from Europe after WWII ended.   He never owned a car, chose to live in the city and take public transport.  He loved to maintain the vehicles of his regular customers, and seemed more concerned about keeping on the road running smoothly than purchasing one for him self.  Odd eh?  He would also help someone in dire need with no finances. 

I just love seeing an older well maintained vehicle.  Its much more intriguing as to who owns it, and how exceptional they must be.

I know when my car is no longer driveable, I'll seek another with great gas mileage.  Hopefully that's not for a long, long time yet.  My last car retired at 14.