Old cars and value

[C M Smith <cmsmith@domain.elided>]

Picking up on J Hertzman and T Hancock's variations on the old car owner's 
lament let me inject a note of optimism into the debate. I now have two old 
cars: a 1986 SAAB 9000 Turbo with 256,000 km on the clock and a 91 Alfa 
Romeo 164L with 146,000 km on the odo. They cost about the same per year to 
maintain in tip top shape, with factory parts at professional mechanic 
rates. I would not hesitate to drive either across North America confident 
it would be no less reliable than the average 4 year old car. I carry 
tools, oil, "fan" belts, plugs, a working though slightly defective 
thermostat, and that's it. (And a credit card!)

The annual repairs and maintenance cost for each is about CAN $3,000.00 to 
drive a car that would cost about CAN $45,000.00 to replace. Depreciation 
on each is effectively nil, especially since I have no intention of selling 
either one. Elementary mathematics will demonstrate that the depreciation 
alone on the new car will far exceed these repair and maintenance costs. 
Throw in interest charges or opportunity costs and a little routine 
maintenance costs on the new car and the cost advantages of the older cars 
is huge. The biggest risk is putting a big repair in and getting rear ended 
driving away from the shop by some dimbulb who shouldn't have a license to 
drive.

I bought the 164 new in Nov 1991 for about CAN$40,000.00 and it's now worth 
about $5,000-8,000 to the right buyer. The SAAB I bought 1.5 years old in 
March 1988 for about CAN$28,000 and is worth about $3,000. Neither is 
saleable for its true value. (Nor for sale for that matter)

If you hunt around for good used or aftermarket parts and do your own work 
the economics heavily favour keeping a good older car in top shape so it is 
reliable and fun to drive. The big mistake is made in treating cars as 
disposable machines as they surely will rapidly become if you choose to 
treat them as such.

Funnily enough, in the long, long run, following factory maintenance 
requirements and using OEM or equivalent parts is the best overall policy 
for years of relatively low cost high quality motoring. Buy new and keep 
the car up to snuff and a modern car will deliver decades of delight.

I bought  a new Mazda Protege for my daughters to drive and intend to keep 
it until it is destroyed by aforesaid numnuts or it falls apart. I also 
bought a 3 year old SAAB 9000 Aero which I intend to keep also. If Alfa 
brings a new model over I will be right there in line for another long term 
love affair.

Cheers


Michael Smith
Calgary, Alberta,Canada
91 Alfa 164L
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