[Question] I have some questions about buying a car.

Hylian · May 31, 2012

Basically I am looking at buying a car but I am unsure if I should buy a new or a used car. I have about $5,000 saved up right now (and no I do not have an old car to trade in).

Now I like the idea of getting a car that is completely paid off but that would involve buying a used car and there is no way for me to be sure I am not getting a crap car. Now if I did buy a new car I would probably wouldn't to go over $12,000. If I do get a car with payments I want one I can pay off fairly quickly because I am hoping to move soon for work. But I am unsure what I should be exactly looking at or what I should be even expecting for the price range I am looking at.

Basically all I really want is a car with a good gas mileage and that is reliable and if at all possible one paid off but I am not sure if I would be able to get all of those. So any tips/help/recommendations/etc will be appreciated.

Adam · May 31, 2012

Ford Fiesta, Toyota Yaris, Honda Fit.

To be fair, just because you're buying a new car, doesn't mean it's not going to be a crap car. Even if you looked at a 2010, you can get some very decent used vehicles in your price range.

sixpackshaker · May 31, 2012

Does anyone in your family know a good mechanic? If so have him check out used cars that you are looking to buy. If you can afford a $5,000 car buy one that comes as close to that as possible. Below 5k the quality of the car drops rapidly.

Do your research.

Never buy a car that is blowing smoke out of the tailpipe at any amount. -just walk away.

Another thing is look for a mechanically sound car that is not very popular. You get a better car, but it is nobody's dream car.

Shegokigo · May 31, 2012

Toyota Yaris. That thing runs for like a year without gasing up. It's insane.

Necronic · May 31, 2012

If you're going to buy used make sure it is still (significantly) within it's warranty. Or buy a 500$ "throwaway" car.

MindDetective · May 31, 2012

When I car shop, I am glued to http://www.edmunds.com/ It steers me away from the car I drool over for no reason (except aesthetics, maybe) to the car that still looks good and will be much more reliable. You can also get a good sense of how much you should be paying so that you won't question yourself too much after you fork over all of that cash.

Mathias · May 31, 2012

Edmunds is by far the best review and search site out there.

Shegokigo · May 31, 2012

Also with a Toyota, by the time it breaks down, you'll have had a job long enough to buy another. Most last over 10yrs with basic maintnence and common sense care. Even if something DOES happen, they're some of the least expensive cars to fix.

Necronic · Jun 1, 2012

It really depends on what you're fixing. American car parts are massively cheaper to buy than japanese parts. Like, an order of magnitude in some cases. But the difference between a 50 dollar part and a 300 dollar part may not be enough to justify the possibility of breaking down more often, since labor on any significant repair will be the same, and the cost of being without a car for 1 day is pretty severe.

But american cars have supposedly improved their quality. Ford Focus is supposed to be a pretty reliable car, and it's cheaper to fix than a japanese car. But I don't know if I would take a risk on the quality.

PatrThom · Jun 3, 2012

The Pontiac Vibe/Toyota Matrix gets good marks. Also, a coworker recommended to me the Ford Escape just because parts are extremely plentiful and cheap.

--Patrick

strawman · Jun 6, 2012

A new car loses 20-30% of its value the instant you drive it off the lot. A better option is to by a used car that is still under warranty - let the initial buyer carry the initial price drop just by virtue of the car being used, and you still have the warranty to make sure things are in good working order. You'll still need to take it to a mechanic (unless you get it from a dealer with a return guarantee) and have them look it over.

Unless it's new, don't buy a car until you have a mechanic you trust check it out. If they seller won't let you take it to your mechanic, walk away and look for another vehicle.

In general you can expect a car to last 80-90 thousand miles before it starts needing major maintenance and repairs. Therefore whatever you spend initially gives you a rough cost per mile to use the car. If you spend $12,000 on a new car, then each mile is going to cost you about 15 cents, not counting regular maintenance and fuel. If you instead spend $5,000 on a used car with 30k miles on it, each mile is only costing you about 10 cents. The cost of gas is going to be higher than that, unless you get an obnoxiously fuel efficient car and drive like granny, but it's something to keep in mind - you're not just buying a vehicle, you're buying miles.

Before you start shopping for vehicles available, check out edmunds and choose the vehicles that you like, then figure out what they're going to cost per mile initially, in maintenance, and in fuel. You might be surprised at how cars compare when you determine how much they cost per mile.