Cheap Rides

[Bruce Wrenn]

In 2003, I bought my neighbor's 1990 Honda Civic for $293. It had been in an accident and was totaled by insurance company, so I got it for the "buy back price." Had new (less than 500 miles) tires, and new battery. Over the years, I replaced clutch ($140,) half axles and master cylinder ($125) along with a couple sets of tires. Drove it over 150K miles. Today took it to salvage yard, and got $160 for it. This means I drove a car for 15 years that other than routine repairs, cost me $133. Best I ever did is I bought a 1965 Plymouth from my employer for $75, drove it over 100K miles and sold it for $125. As you can tell, to me, a ride is just that, a ride.

[Bert Kemp]

Very frugal and a great idea

[Mike Henderson]

Sounds good, but if it was totaled, didn't you have to put some money into it to repair it?

Mike

[Wayne Lomman]

Not just frugal, it makes economic sense. Depreciation does not exist at the lower price ranges. I have always adopted a similar strategy to Bruce's and it works. If you are worried aout your image, choose a model with a bit of character. With the insurance write off, it just means a repair is worth more than the insured value and for older cars, that is often trivial damage that a few hours work can fix for next to no cost. On top of all this, it's great for the environment to keep older cars going. Cheers

[Jim Becker]

While that's not something that would be satisfying to me, I do admire those like yourself that can leverage a "diamond in the rough" for economy like that. I have a family member who tends to own and drive vehicles sourced like that, but unfortunately, I don't believe he takes care of them like you do and therefore, the lifespan is pretty short for a given ride.

I will say that my plan is to stay in my current 2012 vehicle for a lot longer than I historically have done so. It's paid off, has a lifetime comprehensive service contract and is uber comfortable to me. Worse case, I may need to replace the "radio" head for something more modern to stay up with changes in connectivity standards. So with my recent retirement, my younger daughter in college and so forth, it does make economic sense for me to enjoy it for another 5+ years. And at that point, we may not need more than one vehicle or if we do and it's still holding up, it will stay in the driveway.

[Curt Harms]

I did something similar with an '86 Ranger. Got sideswiped so quite a bit of bent tin but little mechanical damage, a wheel hub I think. It was totaled, got a check and they said "do what you want with it". Bought a new bumper and panels and hub from a junk yard. It looked pretty "ghetto" but ran great for probably another 4-5 years. It would still go 5000 miles between oil changes and only be down about a quart.

[Malcolm McLeod]

I recall a story about barn-find vehicles and recent trend - - apparently it is currently chic to find an old beater of a car/truck with 50 yrs of 'patina' (I've always called this 'rust'), fix the mechanicals, and then slap a couple coats of clear on the body. Done. ....we stylin' now!!:cool:

[Tom Stenzel]

I had a '69 Falcon that cost $125. It needed some minor repairs to get it on the road, 2 tires, a carburetor and 4 exhaust valves. During the 4 years I drove it had to put a water pump and a muffler on it. Then sold it for $250.

The '97 Saturn was bought new. I drove it for 18 years and the only things replaced under the hood other than maintenance was the water pump and the torque axis mount (motor mount on the passenger side). I would have kept it but the space frame was rusting.

The Chevy Venture I drive now was bought used for a good price but the transaxle fizzling soon after made the value equation a bit lopsided. Since then I wouldn't call it a money pit but there's always something wrong. I described the last few problems with the fuel pressure regulator and water pump before ($40 and $15 for parts respectively). Now it's one of the ABS wheel sensors is intermittent. It's part of the front wheel bearing hub so it won't get fixed unless the wheel bearing goes kaput. Or the headlights that hold water like an aquarium. It's always something. The good points of the vehicle? The seats are comfortable for me, I like the way it handles. It's easy to get a wheelchair in and out of. Plus my wife and daughters hate driving it. That's value!

-Tom

[Jim Becker]

For those wondering about "totaled"...relative to insurance, that's mostly a financial decision where the cost to repair completely exceeds the value of the vehicle and that can be a really low number on an older ride. So it's not surprising that the OP was able to scarf that vehicle for next to nothing in what was essentially workable condition.

[Brian Henderson]

Sounds good, but if it was totaled, didn't you have to put some money into it to repair it?

Mike

And if it was totaled, you can't legally transfer ownership. My oldest daughter's car was accidentally totaled by the insurance company after a minor accident. It can't be sold. It can't be registered in anyone else's name. It cannot be traded in to a dealer. I get that this was a long time ago and the laws have probably changed, but you couldn't do that today.

[Mike Henderson]

And if it was totaled, you can't legally transfer ownership. My oldest daughter's car was accidentally totaled by the insurance company after a minor accident. It can't be sold. It can't be registered in anyone else's name. It cannot be traded in to a dealer. I get that this was a long time ago and the laws have probably changed, but you couldn't do that today.

From some research I did on the web, it appears that you can get a "salvage title" for a vehicle that was totaled, but you have to show that the car is safe to drive. I don't know how you do that, perhaps with a licensed mechanic's certification. The "salvage title" would put others on notice that the vehicle had been seriously damaged at one time.

Also, it appears that an insurance company will "total" a car when the cost to repair exceeds the market value of the car. So the damage to Bruce's Civic would have been greater than the market value of a 13 year old Civic in 2003.

When the insurance company "totals" a car, they pay you the market value of the car (not the repair cost), but they take possession of the car. Now that car still has some value, as Bruce pointed out the tires and battery are worth something. So the insurance company will sell the hulk for salvage and get what they can for it.

Mike

[Perry Hilbert Jr]

Has a 1974 ford pickup that a guy started to turn into a street rod. Paid 800 for it. Had to put tail lights on it, other wise ready to roll, just ugly black primer paint. Put a radio in it. Had it four years, drove it all over the place. The fellow took out the original 6 cylinder and three speed tranny and put the engine and automatic console shift from a t-bird in it. Had factory mag wheels and wide tires. He also put the white leather bucket seats from the T-bird into it. (they were sitting on a platform to raise them 3 inches. ) for some reason the alternator kept burning up and Pep boys kept replacing the alternator under warranty. After my daughter was born, I needed a vehicle to carry a car seat etc. so I advertised the truck in a local fairfax VA paper. A week later I got a call from a guy in West Virginia. He paid me the $1,500 asking price sight unseen. He sent a check, which I deposited and when it cleared, in accordance with his instructions, I put the keys and signed title in the glove box and left the truck locked in my driveway. Pulled the tags and waited. He said it might be a month to six weeks before he could get it. Well, on Thanksgiving day, I know it was there when my in-laws arrived. I went out to the car to get something after thanksgiving dinner and the truck was gone. I tried to call the guy and got a recording that said the number was disconnected. Wrote a letter to the guy trying to make sure that it was him that got the truck and the letter came back, moved no forwarding address. A year later, I got a picture in the mail of a guy holding a trophy next to a fire engine red pick up truck, which I assumed was the truck. (same year) On the back of the picture was scrawled "thanks." I hauled goats, hay, firewood etc. I put no money into tires, and only about $40 in tail lights. Had it four years and sold it for $700 more than I paid.

[Lee DeRaud]

I recall a story about barn-find vehicles and recent trend - - apparently it is currently chic to find an old beater of a car/truck with 50 yrs of 'patina' (I've always called this 'rust'), fix the mechanicals, and then slap a couple coats of clear on the body. Done. ....we stylin' now!!:cool:That scenario gets a bit muddled when "fix the mechanicals" includes things like an LS engine swap...

[Bruce Wrenn]

Totaled in insurance terms means repairs exceed 75% of vehicle value. During recent snow storm, a limb fell and hit wife's 98 Chrysler Town and Country. Estimate to repair was around $1300, so insurance company wanted to total it. They listed value as being $1100, until they saw vehicle. It truly is a "cream puff." Less than 120K miles, and not a dent or scratch. After looking at vehicle, adjuster assigned a value of a little over $3000 for vehicle, so they paid for repairs. His appraisal was in line with both Kelly and NADA. As for Honda, damage was limited to left doors and left front fender. Yes the doors still worked perfectly, only bashed in. FYI, Clark Howard says insurance companies never off more than 75% of actual value of vehicle in first offer.

[Mike Henderson]

Totaled in insurance terms means repairs exceed 75% of vehicle value. During recent snow storm, a limb fell and hit wife's 98 Chrysler Town and Country. Estimate to repair was around $1300, so insurance company wanted to total it. They listed value as being $1100, until they saw vehicle. It truly is a "cream puff." Less than 120K miles, and not a dent or scratch. After looking at vehicle, adjuster assigned a value of a little over $3000 for vehicle, so they paid for repairs. His appraisal was in line with both Kelly and NADA. As for Honda, damage was limited to left doors and left front fender. Yes the doors still worked perfectly, only bashed in. FYI, Clark Howard says insurance companies never off more than 75% of actual value of vehicle in first offer.

Are you sure about that 75% figure? It doesn't seem to make good sense from the insurance company's point of view.

Let's say you had a car that had a market value of $10,000 (to use round numbers). If it was damaged to the extent that repairs would cost $7,500, it would be less expensive for the insurance company to pay for the repairs than to give you the market value ($10,000) and total the car. Additionally, the owner would not be happy to have the car totaled because s/he now has to try to find a replacement car for $10,000 and there's transaction costs to purchase a new car (taxes for one).

It would be in the insurance company's best interest to only "total" a car that has damage *greater* than the market value. That way, they can pay the market value and avoid the higher cost of the repairs.

Insurance companies are not known for making bad financial decisions (or for being generous).

Mike

[Also, when I search on the web, the articles all say that a car is totaled by an insurance company when the repairs are more than the market value.]

[Brian Henderson]

When the insurance company "totals" a car, they pay you the market value of the car (not the repair cost), but they take possession of the car. Now that car still has some value, as Bruce pointed out the tires and battery are worth something. So the insurance company will sell the hulk for salvage and get what they can for it.

Except in this case, the total was an accident, they didn't mean to do it, from what I understand, but once they file the paperwork, it cannot easily be undone, if it can be undone at all. So now my daughter is driving a car that is officially totaled but which is perfectly fine. The insurance company even paid to have it repaired, which they did before they totaled it. She just can't legally sell it except as scrap.

[Jim Becker]

Mike, I think someone mentioned that the "75%" or similar is sometimes a "first offer" by an insurance company since there are likely many consumers who don't bother to question valuation. The insurance company wins in that case since they pay out less than they would have to for a real repair or for full ACV if totaled. It's a game, unfortunately...

[Chase Mueller]

All I have to say is Gap Insurance. Really comes in handy.

[michael langman]

I bought a salvaged 2003 Buick Century with 25,000miles on it from a fellow that owns a junkyard and brings back to life salvaged cars. The car had the hood, and front right fender replacedand painted to match the original color. The colplete air conditioning system ans radiator were also replaced.He has to get the vehicles he sells inspected before he can sell them.
The cart looks like a brand new car and drives as such. I paid 5000 dollars for the car, but my wife likes it, and it is a very reliable model car.

[Malcolm Schweizer]

Read in good humor...

(cracks knuckles)

Well, it's been nice reading you guys' amateur horse trading attempts. Now let a real professional cheapskate step up to the plate.

My first car was a 1950 Plymouth that I bought from an old farmer. I took it apart and put it all back together in an amateur restoration. That began a lifetime of trading up, down, and all around for various vehicles. I have never owned a brand new car and I never will.

There have been countless Jeeps and classic VW's, dune buggies, '50's era cars... I could never count. I owned a '59 Cadllac for about three hours. A guy pulled up to me and asked how much- he bought it and shipped it overseas. I made a mint in 3 hours. I have bought a number of cars sight-unseen on eBay, shipped them to me, tinkered with them, and sold them at either a profit or broke even after driving and tinkering with them for a while.

My current vehicles are twin Jeep Libertys that I bought at auction. I bought three of them for $6500 each. They had only 6500 miles. (Coincidence that it was $1 a mile.) I sold one for $12,000 and so I got two Jeeps for $7500 total with only 6500 miles each. I still drive them as our regular vehicles. It's nice because you buy two of everything when you do routine maintenance.

There are countless vans bought at auction and sold for $3-5,000 profit. My wife used to complain, but now she says, "you're the car man- I trust you." I just placed a sealed bid for five vans- fingers crossed. One is a 4-wheel-drive and I'm keeping that one. It was custom ordered as a 4x4 cargo van. How cool is that? I have plans to make a do-all van out of it.

I love flipping cars- take that literally or figuratively. It works either way. :-) There have been a few sprint car incidents in my past.

[Mike Henderson]

I'll add my story here. My first car was a 1946 Ford sedan with a flat head six cylinder engine (an easy engine to work on). I paid $75 for it. I took the engine out and rebuilt it. Had the cylinders bored out and put in oversized pistons. Had the crank turned and put in oversized inserts. It was not a wonderful cheap deal but I got an education out of it and that has been worth a lot more than making a couple of hundred dollars trading it. My father was a pretty good mechanic and gave me guidance, but I did all the work.

After that, I did all the work on my cars. I owned a couple of VW bugs and got pretty good at pulling a VW bug engine and repairing them. The world was different back then. Engines didn't last like they do today and the engines were simple. The worst car I owned was a Nissan - something always going wrong with it. I'll never buy a Nissan again.

As I got older, I lost the interest and drive to do it all myself. Today, I take my car to the shop and let them do all the work.

I'm cheap because I keep a car a very long time. Most modern cars will last several hundred thousand miles if you take decent care of them. I think most people get tired of their cars long before the car is used up. The other thing is that the "features" (electronics) of the car are advancing rapidly and people may trade to get the advantages of those improvements.

Mike

[Here's a picture of my 1946 Ford]
382615

[Malcolm McLeod]

...
I'm cheap because I keep a car a very long time.
...

+1^ I drive mine until the wheels are square - or I don't trust it to start/run when I need it. (Cheapest car you'll ever own is one that's paid for!)

My wife and I were teased a good deal by family because for several years we drove cars that weren't built in the current century. Que sera - that situation has now passed as well.

...But do you horse-traders know of a screamin' deal on a '75 CJ-5 w/ 302 V-8??;)

[Mike Chance in Iowa]

...But do you horse-traders know of a screamin' deal on a '75 CJ-5 w/ 302 V-8??;)

Coming from the owner of a CJ5 w/302 V8 for 25+ years, there is no way I'm parting with it in my lifetime!
Paul Newman had the best response... https://youtu.be/2mAv2bRX8HU :cool::cool:

My LOML and I have teamed up and cleaned & fixed up several free "dead" cars over the years and sold them for decent profits. Many years ago we picked up a spotless "dead" Geo Metro and it's only problem was a bad fuse. At 45+ mpg we have hung on to that vehicle. It hauls an awful lot and doesn't draw attention to thieves. We keep toying with getting rid of it for a new high mileage vehicle with more power and safety features, but neither of us want to give up how incredibly cheap the Geo has been for us.

[Malcolm Schweizer]

Coming from the owner of a CJ5 w/302 V8 for 25+ years, there is no way I'm parting with it in my lifetime!
Paul Newman had the best response... https://youtu.be/2mAv2bRX8HU :cool::cool:

My LOML and I have teamed up and cleaned & fixed up several free "dead" cars over the years and sold them for decent profits. Many years ago we picked up a spotless "dead" Geo Metro and it's only problem was a bad fuse. At 45+ mpg we have hung on to that vehicle. It hauls an awful lot and doesn't draw attention to thieves. We keep toying with getting rid of it for a new high mileage vehicle with more power and safety features, but neither of us want to give up how incredibly cheap the Geo has been for us.

Not to nitpick, but isn't it a 304 V8? A 302 is a Ford. The Jeeps had an AMC 304. I had one- it had the smallest carburetor ever. It looked like a VW carb! I replaced it with a Holley 650 and lost all my low-end torque. Stupid me! The engine was made to go low and slow.

[glenn bradley]

An approach I used way back was to buy cars no longer needed by aging folks. It is actually economical to drive a 1972 Buick La Sabre with a 350 V-8 and his brethren if your commute doesn't include stop and go traffic. Super cheap to insure; any wreck that the car can't drive away from sure isn't going to have you trying to fix a land yacht. Buy it for a few hundred and drive it for a year or so and sell it; rinse and repeat.

[Mike Chance in Iowa]

Not to nitpick, but isn't it a 304 V8? A 302 is a Ford. The Jeeps had an AMC 304. I had one- it had the smallest carburetor ever. It looked like a VW carb! I replaced it with a Holley 650 and lost all my low-end torque. Stupid me! The engine was made to go low and slow.

LOL Yes, that is correct. (Darn kidney stones making my brain fuzzy.) The Jeep has a 304 in it. The engine is definitely made to go low and slow and it loves to crawl. My LOML has a '70 Bronco pickup originally owned by an uncle until the early '90's. That has a 302 in it. I love the sound of my Jeep's V8 better then the Bronco.

[Ken Combs]

Except in this case, the total was an accident, they didn't mean to do it, from what I understand, but once they file the paperwork, it cannot easily be undone, if it can be undone at all. So now my daughter is driving a car that is officially totaled but which is perfectly fine. The insurance company even paid to have it repaired, which they did before they totaled it. She just can't legally sell it except as scrap.

That depends on your state. In OK, any total can be repaired, inspected and retitled. The new title does reflect the past wreck repair. The inspection is done by a state trooper and has nothing to do with safety. He is just looking to be sure all the parts with VINs are not from a stolen vehicle and that the new owner has receipts for all parts used. And, believe me, those guys know where the VIN is located. It appears in places I would have never guessed. The trooper puts on coveralls, grabs a mirror and flashlight and finds every one of the.

[Ken Combs]

From some research I did on the web, it appears that you can get a "salvage title" for a vehicle that was totaled, but you have to show that the car is safe to drive. I don't know how you do that, perhaps with a licensed mechanic's certification. The "salvage title" would put others on notice that the vehicle had been seriously damaged at one time.

Also, it appears that an insurance company will "total" a car when the cost to repair exceeds the market value of the car. So the damage to Bruce's Civic would have been greater than the market value of a 13 year old Civic in 2003.

When the insurance company "totals" a car, they pay you the market value of the car (not the repair cost), but they take possession of the car. Now that car still has some value, as Bruce pointed out the tires and battery are worth something. So the insurance company will sell the hulk for salvage and get what they can for it.

Mike

Exactly, and it would surprise most people to know the parts value, even in a totaled vehicle. The insurance trigger value to total considers that value, market value and repair costs. My dad had a salvage for 30 years and we quickly found that the parts value far exceeded the value as a 'runner' in some cases. That was especially true with cars 8=10 years old.

[Jason Roehl]

The "75%" of value to total a vehicle is to protect the insurance company from hidden damage. Repair estimates are often just that--estimates. Once the body guys and mechanics tear into a wreck, they often find hidden damage. So if you have a $10,000 vehicle that has $7500 of damage, it's not hard to come up with another $2500 of repairs once the damage parts get pealed off. Replacement parts are getting more expensive with fewer parts being used across vehicle platforms within a brand or company (fewer economies of scale in part production), and labor rates ranging from $75/hr to double that can eat up that last $2500 quickly.

[Art Mann]

We were poor when I was a young man and all we had to get around in was old junky cars. I had to learn to work on them because I couldn't afford to hire someone. I promised myself that if I ever became succesful, I would not drive old cars, no matter how economical. I did and I don't.