How much money you comfortably spend on a veh?

[ZZman]

I think many want new and flashy, carefree. Others accept worn, needing repairs etc. Some might depend on where you live to. The rust belt is rough on vehicles.

I guess to many vehicles are a needed utility. To others an extension of who they are.

 

[carviewsonic]

For a used car, about half the price of a decent new car, or about $16000 here in Canada is in my personal comfort zone. I would love a new car before I retire, and will probably(?) be in the market next summer.

I have the original window stickers for all three Buicks in my sig., and the original (new) bill of sale for the Lesabre. It astonishes me what the original owners paid for these vehicles. I beleive that most new cars now are a much better value than my Buicks were when new. But even so, a new car is far from inexpensive.

 

[pbm]

I have known guys who lived in the projects (public housing) and driven fancy cars with $2000 aftermarket tires and wheels.
I have known guys who have million dollar homes and drive old beaters.
It's the guy that wants the million dollar home and the flashy expensive car that usually gets into financial trouble (can't manage money).

At the end of the day a car is a tool....it's also a depreciating asset....I'm comfortable buying a new, common sense vehicle like a Camry, Fusion, Accord etc... or buying a used car that was well taken care of (let the first owner take the big depreciation hit). I like to buy used cars from private owners and not dealers (cut out the middle man).

Spending over $30K on a car is silly IMO, unless you need it for work or just hit the lottery....

 

[Starman2112]

The most I’ve ever spent on a vehicle is about $20k. A lady I work with just bought her 15 year old son a brand new Tacoma. That just blew me away.

 

[WyrTwister]

Originally Posted By: ragtoplvr
Right now I have a truck and a car. The truck is old, a 91 dakota, and is prior salvage with issues. I have a nicer car, buick lesabre but it is now beginning to have minor issues (servo in the ac, plastic elbows in coolant broke, needs new struts, rear shocks. I would like a truck, so when I go out on vacation, I can haul the motorcycle in the back past the boring parts. a 50K truck is not at all uncommon.

Rod


I have never paid up to the $ 15,000 target . We have owned 2 new cars , bought at the end of the model year .

1989 Chevy Cavalier 2.0l automatic - $ 1,250 down & $ 150 a month for 60 months . My parents paid it off for us , out of some inheritance from an uncle that passed .

2015 Chevy Sonic LS 1.8l automatic . Wrote a check for about$ 14,250 , including TTL .

Recently bought a used 2006 Buick Lacrosse CX 3.8l automatic - $ 6,250 out the door ( 37,000 miles ) .

And several Chevy Lumina 3.1l automatic 4 door sedans and a 2002 or 2004 V-6 Buick . Special , I think . It was a water dog , but was OK , until some one ran into my wife & totaled it . Same with a 2012 Nissan Leaf , totaled too ( we really liked the Leaf , in town only car ) .

The internet is a great shopping tool for used or new cars . Located the last 3 through internet research . Be patient & do not wait until you " have to have another car " .

Before the internet , I used to search the Thrifty Nickle free classified paper .

Good deals are out there ( and bad deals ) on used cars . If you are shopping for new cars , wait until the end of the model year and the GOOD factory incentives kick in .

Best of luck .

 

[dareo]

It seems like in today's market you can get a great deal on a car that is a few years old. in 2013 we bought a brand new Accord because the used models were actually more than a well haggled price for new. Now you can get the same car for a big enough discount to go used.

If you are talking trucks, that is a market that is still worth going brand new if possible. Or older than most people are comfortable buying if you are handy.

 

[Donald]

My wife wants to buy only new cars, she is an attorney so she buys new cars. Same for family car. Myself I bought a lightly used truck.

But in the past it was used cars mostly for me.

 

[WyrTwister]

Originally Posted By: Kurtatron
For me, the amount of savings I have in the bank is my barometer for how much I feel comfortable spending on a car. My problem is I hardly ever have any savings. The most I have ever spent on a car is $2700 - Always cash. Who would finance a 20 year old car anyways?


My first car was a 1992 Mazda Miata. Paid $2400 for that one. Sold it 6 years later.
Second was a Previa van for $1600. Lasted a Month before realizing it was a terrible hunk of junk. Sold a month later.
Bought a 2nd Previa for $2700. Still have it 4 years later.
Bought a Toyota Solara for $1700. Still have it 2 years later.

My problem is these cars have needed a lot of repairs. The Previa van which I still have had a bad head gasket. I had to pay $3000 for a replacement engine. The Solara needed $3000 worth of repairs in suspension, engine, and axle work.

I have not had much luck with the sub $3000 car. I hear stories of people buying a $2000 car, and driving happily for the next 5 years with nothing, but so far only my Miata has proven a successful bet.

It makes me think that next time I should aim for a higher budget, so the repair costs won’t be so high. 5 grand should be my next target.





Something to consider when contemplating cost of ownership . Especially the cost of repairs for used vehicles . Can you or do you do the repairs yourself ? All or in part ?

I have always done most of my repairs myself . I used to fret over the cost of parts . I now shop online for parts , get the best price I can , usually cheaper than walking into a local store and plopping down their price . Add that cost savings with the even larger cost savings of doing the labor myself . I save a respectable amount of money + I can afford to do more preventive maintenance .

Now , I am getting older and sooner or latter I will not be able to do all of this , any more .

Now , as to the impact this has on buying a used car VS a new car . We bought a new Chevy Sonic . And the used Leaf & Lacrosse we purchased were in much better condition than some of the used car I purchase in days gone buy .

If you can not or will not do repairs your self , the HIGH cost of having a mechanic repair your car , influences me to buy new or newer .

As a side note , when a teen ager , it was fun to tinker on your car . Those time are long gone . It is WORK now .

Best wishes ,

 

[WyrTwister]

Do not forger Kelley Blue Book and NADA when shopping for cars . One of the very most important things is do not over pay !

And if you finance , do not over pay for financing . Watch out for all the extras they try to sell you .

Best of luck

 

[Nick1994]

I'm a full time college student and work part time, have no need for flashy expensive cars or the ability.

I bought my 2015 Sonata last February for $9,990. After tax, title, and dealer doc fee it was $11,600. I put $4k down and my payment for 4 years is $179 a month, I auto pay $200 a month and in February I'll refinance it for a lower interest rate and shorter term loan. Buying this car has also helped me build my credit.

My Camry was $2,100. Drove it for 18 months and 31k miles. It was totaled 7 months after I bought it, after buying it back from the insurance company they gave me $2,600 for it, plus $750 for pain and suffering which I didn't ask for. Kept on driving it after that with a new tail light slapped on.

My Jeep I bought last November from my grandparent's for $1,000. I'll never sell it, and it'll probably bleed me dry, but that's ok.

 

[HowAboutThis]

Originally Posted By: ZZman
I have just never had the luxury of paying cash for a decent car. Being avg middle class and living paycheck to paycheck was the norm.


This is a statement I hear so often and, given my profession, shake my head. If you can't afford cash for a vehicle then you DEFINITELY can't afford a payment. Because you're paying MORE. That's what interest is. It's paying EXTRA for NOTHING.

If you save about $250/mth for 60 months you'll have $15k. If you make payments to a bank of $250/mth for 60 months at 3%, you'll probably have about $13k. You DO have the luxury. Just pay your cars off then make a car payment to YOURSELF for 60 months at 0% interest (or positive 1.2% in an online savings account) and you'll have MORE purchasing power for you next vehicle.

You CAN do it. But do you WANT to?

 

[HowAboutThis]

Originally Posted By: fdcg27
There are brand new '17 MY cars to be had for $15K or less and a number of really decent sedans for less than $20K.
Between $17K and $20K you'll find '17 MY Camrys, Accords, Fusions and Legacys, for example any one of which would make a good long-term daily driver.
It's all a matter of what you want as well as what you're willing to accept and deal with in a transportation appliance, which is all a car is at the end of the day.
In used iron, $15K will buy you some really high zoot Euro stuff if that's what floats your boat.
If I were looking at something sensible, though, I'd probably buy something new.
Remember that sticker price is no more than a salesman's wet dream for most models.


I got a 2017 Corolla for a tad over $15k. Plan on keeping for 15+ years, hopefully. But I've already started my "new car fund" to avoid loans. This seems to be a lost art for many...planning ahead financially. Some say, " I can't save, I don't have enough" but have loans for things. I get emergencies, medical and such...but if you can't afford to save for a new/used car every month you DEFINTELY can't afford the payment on the car you're making. Just simple logic.

 

[Mr Nice]

HowAboutThis,

Don't forget to max out all retirement plans (401K, IRA, voluntary pension, etc...) .

That Corolla will last 20 years no problem.

 

[HowAboutThis]

Originally Posted By: Mr Nice
HowAboutThis,

Don't forget to max out all retirement plans (401K, IRA, voluntary pension, etc...) .

That Corolla will last 20 years no problem.


You forgot to ask how many miles I put on per year! If it lasts 20 years I'd have 400k miles...maybe more. I'll be happy with 15 years or about 300k miles. Actually, I'd be fine with 10 and 200k. But I digress.

 

[69GTX]

I prefer, 1 owner, 5-7 yr old cars with low mileage that have track records of minimal maintenance. The last car I bought was 7 yrs old, 22K miles and 23% of MSRP ($9,000). I also prefer to go with full-sized cars with huge trunks to they act as a mini-truck/van. I'm certainly a fan of the Crown Vic, Grand Marquis, Lincoln/Caddy V8 club. Unfortunately, a lot of that "club" is disappearing. After 8 years of ownership car repairs/maintenance with an additional 56K miles have totaled around $1500 (not counting fluid changes). No drive train, suspension, or exhaust repairs yet. For someone who did all those repairs on there own...probably no more than $1000.

Keeping an eye out for a possible "next" 5-10 yr old full sized car in the $5K-$9K range. I've had 2 daily driver cars with payments (out of about a dozen) and don't want to go there again.

 

[Astro14]

Most people way, way overspend on cars. Cars depreciate. Interest adds cost. I've never been comfortable with a car payment eating up a big part of my budget. I've never been comfortable with the way most people spend. I just can't see getting a car that is equal to an entire year's pay, or even MORE! Talk about financial suicide...

I've written a check for most of my cars.

Now, I've got payments on the Tundra. One car payment and the rest are owned outright. That payment is less than 5% of my gross income and the loan is a very low rate. So, I am comfortable with that...at 54 years old, I've bought the second new car in my life...

 

[Andrew1972]

$15k cash.

I could spend more still cash but like the buffer for repairs. I save about $200/month towards car fund for maintenance, repair or replacement.

I am upper middle income. I do some DIY but majority is done by incredibly honest $65/hr mechanic. He tends to let stuff go that $100-$120/hr dealership or import specialists think they need to perform.

 

[miden851]

To me, buying a new car is OK as a long as you do not overspend on it; new cars tend to last longer, better build, latest tech, etc.; it is OK to buy it if you plan to keep it 10 and more years; also the car needs to be babied and maintained.

Used cars are also OK to get as long as you know some stuff to fix it; people tend to believe they get a good deal because someone took the hit by owning it before, but these cars tend to have a shorter life span and latest tech

What I do not understand and I object is that some people buy new and after just one or two years of ownership they want to replaced it or the car already looks like 5-10 years old, with lots of scratches, dents, and any other visible damages to the car; couldn’t you just buy yourself a beater and learn how to drive or how to own the car; this is one of the reasons why people get behind financially;

Disclaimer: I paid for my Mazda around $11k in cash in 2010; I got a good deal then I’d say; and CRV we owe on it $19k as we speak, a year ago the full price was $28k with everything; we plan to keep them both for a long haul

 

[WyrTwister]

Originally Posted By: 69GTX
I prefer, 1 owner, 5-7 yr old cars with low mileage that have track records of minimal maintenance. The last car I bought was 7 yrs old, 22K miles and 23% of MSRP ($9,000). I also prefer to go with full-sized cars with huge trunks to they act as a mini-truck/van. I'm certainly a fan of the Crown Vic, Grand Marquis, Lincoln/Caddy V8 club. Unfortunately, a lot of that "club" is disappearing. After 8 years of ownership car repairs/maintenance with an additional 56K miles have totaled around $1500 (not counting fluid changes). No drive train, suspension, or exhaust repairs yet. For someone who did all those repairs on there own...probably no more than $1000.

Keeping an eye out for a possible "next" 5-10 yr old full sized car in the $5K-$9K range. I've had 2 daily driver cars with payments (out of about a dozen) and don't want to go there again.


Before we purchased the Buick Lacrosse , I happened to see a used Lincoln Zephyr with 50 000 - 60 000 miles , for what I thought was a not too bad price . Looked at it at the Ford / Lincoln dealer , while shopping used Fusions . But I was told it was in " limbo " awaiting parts to arrive for an air bag recall .

Honestly , I had never thought of buying a used Lincoln . Only thing about it , Lincolns have a lot of whistles & bells that can quit working as they age . Also briefly considered a used Caddy , but I read the North Star engines have had problems . I also read the newer ones are not rated great for favor ability . And the whistle & bell issues with the older ones .

I would also have looked at a good deal on a Crown Victoria , unless it had been a police car in an earlier life . Or the equivalent Mercury .

Never thought of buying a Buick , either . I thought it was an OK deal & I am happy .

What are the thoughts on ex - rental cars ?

Thanks ,

 

[WyrTwister]

Originally Posted By: madRiver
$15k cash.

I could spend more still cash but like the buffer for repairs. I save about $200/month towards car fund for maintenance, repair or replacement.

I am upper middle income. I do some DIY but majority is done by incredibly honest $65/hr mechanic. He tends to let stuff go that $100-$120/hr dealership or import specialists think they need to perform.


That brought up another thought . Foreign cars . Have always heard they are expensive to repair . Have heard this is especially true of the top end German cars ( do not know about the Scandinavian cars ? .

Beemers are said to be money pits , when they get some age on them . Not sure about repair history / Cost on a Mercedes ?

Would have a hard time buying a Dodge or Chrysler . That pretty much leaves GM & Ford ( do not wish to test my luck with a Ford dual clutch transmission ) .

Best wishes ,