The Beloved Beater
By: David Hodge
Tags: Learning, Saving, Life Lessons, Tips, Automotive

How I learned to stop worrying and love my beater.

I drive a 2003 Toyota Matrix. Daily. The Matrix is a hatchback version of Toyota’s reliable Corolla model. You are sure to have seen one on the road this morning — the sporty wagon with a crossover SUV look. I purchased mine over the Memorial Day Holiday in 2002, after just returning from an overseas assignment with the Navy. Normal mileage for an 18-year old car would be over 200,000 miles using the accepted average of 12,000 per year, but my Matrix has nearly 500,000 miles and is still going strong. My wife and both of my daughters learned to drive in this car. This car is a member of our family.

My 2003 Toyota Matrix XRS

To be honest, I have had to replace the engine (in 2008 at 200,000 miles), and the transmission (in 2016 at nearly 300,000 miles). Both repairs were replacements from donor vehicles with similar mileage to mine.

Why did I keep this car rather than throw in the towel? I thought I would share with you my reasoning, and maybe help decide whether to keep your beloved beater.

Nobody likes a car loan

The dreaded loan might be reason enough to reconsider ditching your current ride. A recent article from Business Insider (Knueven, 2020) used Experian data in the first quarter of this year and found 5.61% as the average auto loan interest rate for a new car. Because of the risk involved, the average rate for a used car was 9.65%.

Photo by Andrea Piacquadio — Pexels

In either case, the rate you end up with is of course determined by your credit score, the length of the loan, the type of car, and any special offers by the lender.

Wait a minute…worth HOW much?

Every motorist has heard the maxim of a car’s depreciation. The standard appraisal for your shiny new beauty is that it will depreciate as much as 20 percent during its first year on the road, and ten percent annually after that.

The minute you drive that car off the lot, some say you lose ten percent of the car’s original value. Taking that into consideration makes you want to hold on to it for as long as possible.

The other costs

Do not forget the additional costs of owning a new vehicle. Many states base annual registration fees on the value of the vehicle. If true for your state, a newer car would typically be more expensive than an older car. Here in Hawaii however, annual fees are based on vehicle weight and usage (commercial or non-commercial), and among the most expensive I have seen. Insurance coverage is more expensive for a higher valued vehicle as well. Overall, that “new car smell” we all love comes at a pretty price.

Savings, and a different prestige (with some entertainment thrown in)

If you have never worked on a car, you will be surprised to learn that most maintenance work is no more complicated than changing a light bulb. With standard tools and a little research, you can handle most of the checklist items that will keep your car running well for years to come.

But what about breakdowns? Repair parts are cheaper than repairs, and there might be issues better left to the pros. I will wager though, that with the power of YouTube combined with a Chilton’s or a Haynes Repair Manual for your make and model, you will be able to solve most of the standard repairs encountered. Remember that most repairs will be minor, and with a little patience and practice, changing out batteries, alternators, starters, and even brake pads will be no problem.

Photo by cottonbro — Pexels

I love saving money, and there is a great amount of satisfaction in knowing I repaired my vehicle. For the more involved repairs I mentioned above for my Matrix I neither had the experience or the specialized equipment to complete the job. In both cases though, I applied the 50% rule my father taught me long ago. If the cost of the repair (parts and labor) exceeds half the value of the vehicle, it is time to go car-shopping. In most cases though, it is nearly always less expensive to repair what you have.

In conclusion

I understand that many will not agree. Whether the self-esteem boost a new car brings or the desire to avoid any future mechanical problems as the car ages…working on your trusty beater is not for you.

I have been able to save a significant amount of money through the years. As an easy example — my oil change (with both oil and air filter) takes 30–45 minutes and can be accomplished with one wrench.

Photo by Malte Luk — Pexels

The total cost with premium oil and the best filters is around $60. At a ‘quick lube’ type shop, that same job (here on O’ahu) goes for over $90 and you might get your carpets vacuumed as a perk. That same service call at the dealership goes for $190 (and they do not wash or vacuum your car).

Three months ago, my battery died, and after replacing, I realized it was not charging properly. After research and troubleshooting, I decided it was the alternator. The going rate at a shop I have done business with was over $380. It had been a busy week, and I nearly went with that quote — just to have the repair completed and be back on the road.

After checking the parts prices at two retail shops, I went with the better-rated alternator, and the best replacement belt for $172. My wife fussed a little at me for losing my Saturday afternoon, but the $200 I saved will buy a lot of gas, and I earned myself a lot of gratification by doing the job myself.