Recently we totaled our 2004 Toyota Corolla which had 160k miles on it and I've been spending a considerable amount of time doing research on newer used vehicles using Mr. Money Mustache's old friend Phil Edmonston's Lemon-Aid 1990-2016 Used Car Guide. My initial criteria for a car was reliability - I wanted something that I could drive for at least 15 years. After that, I wanted a car with easy repairs, a good engine and transmission, was gas efficient (25 mpg or better) and ideally would cost me less than $10k. We are a family of three with a 2-year old and safety ratings are obviously important to me, as well. I was only considering cars that were in Edmonston's "Recommended" or "Above Average" lists this year.
After test driving a number of cars, I am down to two:
1) A 2013 Nissan Sentra that is being sold by a family friend, who is moving out of the country, for $9300. With sales tax, the total cost would be $10078.
2) A 2014 Hyundai Elantra from a dealership for $9895. Including taxes and fees, the total cost is $11,500.
Truth be told, I liked the way the Hyundai Elantra drove much better than the Nissan Sentra (the engine in the Sentra was loud and far less powerful and it seemed to need a good amount of braking distance).
I am set to buy the Elantra, but I can't get over the fact that it seems absurd to spend $11,500 on a car (I'm paying in cash, of course). This is the first car I'm actually buying, as both of my previous cars (a 2001 Jeep Cherokee Sport, and a 2004 Toyota Corolla) were hand me downs.
Is $11,500 just too much to spend on a car? I just can't seem to get over how much this is going to cost.