I'm struggling with making a decision on whether I should keep my 2007 Ford Escape. Let me provide some details:
1. I'm an outside salesperson, and use my car for work. I average about 30,000 miles annually.
2. My current vehicle is a 2007 Ford Escape with about 170,000 miles. I own the vehicle outright.
3. The engine runs well, but the transmission is starting to slip.
4. I just replaced the alternator and battery this week, but the vehicle needs new brakes (front and rear), and exhaust work. The total cost for these repairs is $1000. I also need to replace the tires in about 90 days. Tires will cost $550.
5. If the transmission needs replacing I'm looking at $1000 for a salvage transmission, and $3000 for a remanufactured transmission.
I can't afford to make a cash purchase for a replacement vehicle. I will have to finance any vehicle I purchase. If I only used the vehicle for commuting or driving around town, I would make the necessary repairs. But in my case, my vehicle is my office. I sell maintenance products and keep sample in my vehicle. A small SUV is the vehicle of choice in my career field. I'm able to write off all my business miles. 30,000 miles X $0.535 equates to a sizable deduction. If I purchase a replacement vehicle, my budget is $10,000 with no more than a 24 month term. I can afford to put $2000 down, so that leaves a loan amount of $8000.
In my case does it make sense to purchase a replacement vehicle for work, or to keep the Escape and pay for the repairs? I already know I have to spend at least $1550 in the next 90 days to make necessary repairs and to purchase new tires. If the transmission goes, I'll be spending between $1000-$3000 (and with the way it's slipping, it's only a matter of "when", not "if").
1. I'm an outside salesperson, and use my car for work. I average about 30,000 miles annually.
2. My current vehicle is a 2007 Ford Escape with about 170,000 miles. I own the vehicle outright.
3. The engine runs well, but the transmission is starting to slip.
4. I just replaced the alternator and battery this week, but the vehicle needs new brakes (front and rear), and exhaust work. The total cost for these repairs is $1000. I also need to replace the tires in about 90 days. Tires will cost $550.
5. If the transmission needs replacing I'm looking at $1000 for a salvage transmission, and $3000 for a remanufactured transmission.
I can't afford to make a cash purchase for a replacement vehicle. I will have to finance any vehicle I purchase. If I only used the vehicle for commuting or driving around town, I would make the necessary repairs. But in my case, my vehicle is my office. I sell maintenance products and keep sample in my vehicle. A small SUV is the vehicle of choice in my career field. I'm able to write off all my business miles. 30,000 miles X $0.535 equates to a sizable deduction. If I purchase a replacement vehicle, my budget is $10,000 with no more than a 24 month term. I can afford to put $2000 down, so that leaves a loan amount of $8000.
In my case does it make sense to purchase a replacement vehicle for work, or to keep the Escape and pay for the repairs? I already know I have to spend at least $1550 in the next 90 days to make necessary repairs and to purchase new tires. If the transmission goes, I'll be spending between $1000-$3000 (and with the way it's slipping, it's only a matter of "when", not "if").