What's a good strategy for keeping Car ownership costs low?

Water Cooler
#1

I currently drive a 13 year old Honda Civic with over 170,000 miles… it’s been fairly cheap to insure, fill up, and maintain despite its age. However, I’m a bit anxious about holding on to it for a few years (200,000 seems like the magic number where I’m considering ditching it.)

I have more than enough money (in cash and liquid investments) to buy a low to mid end New Car with cash. However, I’m a bit anxious about the rapid depreciation over the beginning of the car’s life. If I do choose the new car route, I’m looking at some of the cheaper, fuel efficient models (i.e. Toyota Yaris, Honda Civic, Honda Fit, Ford Focus, Mazda 3, etc.) I’m not willing to consider a Hybrid (except maybe the Prius C) since my calculations suggest a very long payback period unless gas prices get ridiculously expensive and stay there for over a decade. My maximum budget is about $25,000 (US).

Another possibility is to keep buying used cars (under $10,000 each, preferably under $5000) and drive each for a few years until they die and rinse and repeat.

Assume that I’m not working in some sort of Sales position and don’t really need to impress anyone with my car. Also assume that it’s impractical to walk or take public transportation here.

Would it be cheaper over the long run to buy a new, fuel efficient car once, say, every 15 years and driving it till it dies or to “gamble” with cheaper old cars and drive them till they die every few years?

#2

Why not buy a low mileage used car and drive it for 10-12 years? Not sure where you live in US, but in greater Philly area you can easily pick up a Mazda 3 with less than 15k miles for under $20k. If you’re diligent, you can get less than 10k miles for under $20k.

#3

^ This. Look for something only a few years old (maybe even just off-lease), low miles, well maintained, etc. You’ll still have a reliable car without the massive depreciation.

#4

ride the Honda until she dies and then buy another Honda…

#5

FTFY

#6

To the OP, you my nigga man.

Anyways, here is my car owner history. Shortly after getting out of undergrad, I bought a murdered out Chevy Caprice for $10k and 50k miles. Dis car was the sht! Rims, tint, system, you name it. Plus it was fast as hell. While the car wasn’t that much, it did cost me a few tickets since it was a total cop magnet. Tint was way below legal so I got cited for that really soon after buying it. All things considered, it was a cool fun car, but it cost me a ton in upkeep. Those low pro tires were expensive as hell. I got hit in the side which cost me a few $k. And so forth. Having a nice car demands upkeep since you don’t want it to turn to a hooptie. Good thing about this car was learning engine repair. Unlike a Civic which demands little sweatshop hands to get near the block, the Caprice was just right for my big hands to get in and get the job done.

After that car, I got a Chrysler 300C off of a lease for $17k and 35,xxx miles. I kept this one stock other than a system. It was a great car! Ran like a champ, got remarkably good gas milage, and lasted for quite some time. The rear wheel drive finally drove me to a SUV after seeing how often I was stranded in the winter months.

Now I roll a Ford Expedition, again, used. It’s a great ride for getting around, handling NYC winters, and so forth.

I’m with you. I’d never buy a new car off the lot. Trade in values just suck as well. If I were you, I’d buy used cars that have 4-8 years of life left for less than $8k. You then spend very little on the car and get to trade up in a shorter time span. If you have to finance a car, it is too expensive. The Expedition I have now cost me a whoppin $9k for 100,xxx miles. Thing is still running like a dream. While you feel the 200k may be the magic number, if you treat a car well, change the oil regularly, and keep it clean, it will last a long time. Heck, my 91 Caprice’s original paint still had a showroom shine since I washed and waxed it regularly.

Cars are nothing more than a depreciating asset. Be like my man Buffett and buy cars that have a low cost per mile.

#7

How often do you change your oil? I have a friend that does 4K miles a year (second car) and he only changes it once a year. Not sure if that is recommended.

#8

3-4 months or 3k-4k miles. I get the cheap nonsynthetic oil. I’d rather change it more than buy expensive oil and change it every 12k miles. Just my .02.

#9

Cars depreciate faster during the first couple of years, so I say get something that’s 3-4 years old. By the way, I’m selling my S2000 if you’re interested. It isn’t the most practical car, but it is pretty economical.

#10

Buy a car around 2 yrs old thats been driven the average miles. There’s some statistic that says as soon as you drive a new car off the lot, you immediately depreciate like $5k

#11

^ I heard it’s 15% the second it leaves the dealership.

#12

While I agree typically it is good to buy used, it is less good than it used to be. I read an article recently, but couldnt find it. Here is another from Feb…

http://www.cleveland.com/business/index.ssf/2012/02/used-car_prices_near_all-time.html

#13

I believe OP is purchasing for himself, not his wife

snap

#14

As they say, the highest depreciation occurs as soon as you drive a new car off the lot. Only noobs buy new

Today’s Honda/Toyota engine are built to last til eternity. Buy an 04-08 Camry/Accord and call it a day. Low maintenance, high dependability, great mileage.

Although, I would consider checking out the new Kias like the Optima and Sportage. They look pretty darn good for a fking Kia!

#15

I think the used market is starting to return to normal. There was a significant shortage of quality used cars for a while, but it’s not as bad as it was a couple of years ago. New car incentives have also started to become less attractive.

#16

[](http://www.google.com/aclk?sa=l&ai=Cco-V0VEqUL39OsWm0AGtqYBYpL_QrgLk2uTAGpTwgvFKCAYQAiDHmPgFKAJQkavY6_3 _____ AWDJnqeM0KT0D6AB6P6J8wPIAQeqBCNP0IWvy1NFcvoT_wvnwjQOp2y1Z-9e9u83QK3AFhTYcmo4QoAFkE7ABQWgBiY&sig=AOD64_1LQAMaATmXrltM2HraahjTALpfnw&ctype=5&ved=0CLABEPMO&adurl=http://www.saferwholesale.com/Electric-Moped-p/electric-moped.htm%3Futm_source%3Dgoogle%2Bproduct%26utm_medium%3Dversafeed%26utm_term%3Delectric%2Bmoped%26utm_campaign%3Delectronics%26utm_content%3Delectric%2Bcompany%26v_traceback%3Dc0811_2005_f0811_2153%26Click%3D35179&rct=j&frm=1&q=moped) I get 70 miles to the gallon on this hog.

#17

My car just got messed up by a hailstorm sunday night. Not worth covering it with insurance, so looks like I’m driving a dented up honda for the next 6 years :stuck_out_tongue:

#18

I think buying a 2 year old car is the optimal solution (right on the efficient frontier)! I am taking by experience, I purchased a $56K car and tried selling it next year - the dealer told me the worth is $36K now :-|. I had drived it for 5K miles (only) in 1 year.

Most of the (exponential) depreciation hits in the first 2-3 years.

#19

I ran 13.99 in my S2000. 126k miles, and my cost is $6000 as it sits due to rebuilding it myself after it was totalled. I bought it in 2007 @ 66k miles. 26mpg and 9000 RPM redline to boot! Great city rally car.

#20

I ran 13.99 in my S2000. 126k miles, and my cost is $6000 as it sits due to rebuilding it myself after it was totalled. I bought it in 2007 @ 66k miles. 26mpg and 9000 RPM redline to boot! Great city rally car.