Choosing Low Cost "Basic Transportation"

daveleenc

I need to replace a vehicle that was totaled (the deer is just fine, but the car/tree didn't do so well). For the next 3 years or so my transportation needs are going to be somewhat unique as all that I need will be basic transportation around town. I'm guessing around 6K miles/year. My initial outlay budget is $5K (would go up to $6k for the 'right deal'). The goal here will be to minimize total cost (purchase price - residual value + expenses). I would be getting rid of the car in around 3 years and move up to something new.

A 2005-8 Chevy Malibu would represent a typical choice here. 2005-8 Ford Fusion, Hyundai Elantra, and so on are alternatives, but I have flexibility if the vehicle is bigger than a mini-Cooper.

I'm just looking for suggestions to consider (or vehicles in this range to avoid).

Thanks.

dave

Mr_Shiftright

In this price range I think you get more car for your money with a domestic, but you do have to be careful of how many miles are on it. My personal opinion is that after 125,000 miles, things can go bad in a hurry. It would be great to find a Malibu under 100K miles. The Japanese compacts and subcompacts may end up being more reliable but for $5K you aren't going to get much unless you do a lot of hunting. By all means, if you find a car you like, and even if it looks decent and drives fine, have a pre-purchase inspection done on it. Remember, a $5000 car that needs tires and brakes is really a $6,000 car.

daveleenc

Mr. S - thanks for the comments.

dave

stickguy

Can always snag am Elantra or some such on a $129 lease and know a fixed cost.

Mr_Shiftright

That's not a bad suggestion, Stick, at least for this person's particular needs. Since he'll have no trouble staying in the mileage requirements of a lease, and presuming he has a credit score high enough to acquire a lease, he could run the car pretty economically for 3 years and then walk away. Question is if he wants the monthly payments and if he can take care of the car so that he's not hit with damage costs at turn-in.

Michaell

stickguy said:

Can always snag am Elantra or some such on a $129 lease and know a fixed cost.

Be careful! Some of these low payment leases require substantial money up front - $999, $1999, $2999 - and while that lowers the monthly payment, the total cash outlay goes up accordingly.

daveleenc

Leasing a $5k car is something that certainly had never crossed my mind. I have never leased a car in my life, based mostly on the lack of flexibility that a relative ran into once (wanted to re-title from joint to single and they refused to do it).

But I don't think that I would lease a $5k car. Other than an automatic home for it after 3 years, it just doesn't offer me any particular advantages. But a most interesting thought, regardless.

dave

Mr_Shiftright

No, the car would be a new 2015 model. Once in a while, some pretty tempting lease deals turn up. But as Michaell says, read the fine print. If the lease says $149 a month for 36 months with $2995 front money, then of course it's really $232 a month.

daveleenc

Thanks for the clarification, Stick. I was just confused (a familiar state to me :-)

dave

kyfdx

Generally, $200/mo. is about as low as you can go on a 36 month lease payment, with only 1st payment due at signing.. (tax and all fees rolled in).

Might be a couple examples that are a little cheaper than that... The big advantage is no repair costs and very little maintenance outlay. Something you can't say about a $5000 car.

qbrozen

BUT, if you get something like the Buick Encore a couple of us have talked about, you could, like my sister, wind up with a total 3-year outlay of about $7700-$7800 bucks with all maintenance included. Spend $6k on a used car and your maintenance/repair budget is a huge question mark and could easily cost you more in the end than that brand new vehicle.

On the other hand, you probably have something of worth after 3 years with a $6k car, even if its $1500-$2k, that you wouldn't have with the lease.

Anywhoo... on the used car question, I always lean toward the lowest mileage mazda protege/mazda3/mazda5 you can find.