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Junk the clunker?
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July 13, 2000: 9:24 a.m. ET
Ego aside, you may save bucks by holding on to an older car
By Staff Writer Rob Lenihan
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NEW YORK (CNNfn) - It's tough driving that older car. You wheeze down the freeway in a rolling version of space station Mir while getting smoked by 23rd century spitfires straight out of a George Lucas movie.
You may be suffering from new car lust, a driver's condition that can put your ego on the critical list. But experts say you could save money by controlling your desire for the new car smell and holding on to your older vehicle.
 Owning an older car seems to be a trend. Statistics show the median age of cars on the road is 8.3 years, up from 5.9 years in 1979. With the median price of a new car coming in at $24,000, an old car with no finance charges, no excess mileage or disposition fees, and no penalties for wear and tear starts to look like a bargain.
"Older cars are getting better and better and they last longer," said David Van Sickle, the AAA's director of automotive information. "The truth of the matter is that it really is now cheaper to drive an older car than it used to be."
An article in the August issue of Consumer Reports tackles this very question, advising drivers that many cars, if well cared for, can go for 200,000 miles without going to pieces.
"There's a great deal of value to be preserved in older cars," said Louis Richman, finance editor for the Yonkers, N.Y.-based publication. "You have to keep your emotions in check about this."
So do you want that new car smell so badly, or would you rather put $10,000 in a mutual fund and get some real mileage out of your money?
Jewel or junk?
When should you think about sending your car off to the vehicular Valhalla?
Van Sickle said if your repair bills exceed what the payments would be on a replacement car, then it's probably time to move on.
"A lot depends on how much you're willing to put up with," he said, "and how handy you are. If you have to depend on someone else for repairs and you can't stand the inconvenience, you might want to move on sooner."
Auto expert Lauren J. Fix said if the amount of money you're putting into the car exceeds its current value, it's time to consider other options.
"There's a time frame," she said, "when the vehicle is going to need major work, which is expensive, such as the motor, transmission, body work or brakes. People will say their car's in great shape, but if it needs major work, then it's not in great shape."
Even though older cars are in better shape, Fix said, mechanical things wear out after enough wear and tear. If the car's been in an accident, you may want to get rid of it as soon as it's economically possible.
"It's never the same the second time around," she said.
Baby, you can drive my car
Richman, speaking to reporters Wednesday, said there are five points for motorists to consider when determining the value of their old car:
· Is it safe? Older vehicles lack much of the safety equipment that newer models have. You may not want the young drivers in your family out on the roads without airbags and other items.
· What is it worth? Most cars will drop in value 15 to 20 percent after their first year on the road, with subsequent drops as the mileage increases. But once the vehicle reaches the 100,000-mile mark, its value tends to level off. The Consumer Reports Used Car Price service can help you determine the value of your vehicle. Other price information sites include Kelley Blue Book, Edmunds.com, The Car Connection, and Intellichoice.
· How's it running? Richman said you might want to think about your car's end-of-life strategy when you reach 75,000 to 80,000 miles. An inspection should tell you what need works and give you a picture of the major mechanical systems. Ask for the whole story, so you're not dropping a wad of cash for one job and coming back for more a month down the road.
· Any fatal flaws? If the inspection comes up with major issues, like frame-rail rust and major collision damage, it's probably time to lower the flag and blow taps. Add up the value of your car and the cost the repairs and decide if you want that car for that kind of money.
· How reliable? In addition to the cost, there's also a matter of time. You might be spending too much of it in the service station cooling your heels. 
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