Ideal Vehicle Expense?

[liquidbanana]

What is a frugal but realistic amount to spend yearly on vehicle ownership, not counting taxes, insurance and fuel? I guess I'm asking, what do you aim to spend, by yearly average, on buying a vehicle, minus how much you sell it for eventually, with maintenance costs factored in?

I think roughly, in the last few years, I've been spending about $1,000 for a beater. I just sold it recently because it wouldn't start and had too many repairs needed and was nearing 250,000 miles. I averaged 10,000 miles a year during the time I had it, but I should be able to get that down to a few thousand a year or less now that I've relocated to a more urban area.

Is $1,000 good or bad? Should I be aiming for a lower number than that? I have zero mechanic skills, which I may work on, but I'm not counting on it. lol

[liquidbanana]

It would be used for mostly just shopping and recreational activities outside of town (but within 10-40 miles). It wouldn't be used for commuting except perhaps when the weather is really bad...and it's only a mile commute.

[ellevendollarbill]

This is an interesting question.  My wife was given a car in 1998 by her parents.  It was a 1995 Toyota Corolla and they paid approx $15000 for it.  The car now has about 170k miles.  I don't know how much has been spent on maintenance over the years, but if you simply look at the purchase price amortized over 15 years, you're looking at $1k per year.  Oh, but if we sold it today we could maybe get $2k for it, so the $1k/year should be amended to $866/year.  This is how her parents operate - buy a newish car and drive it into the ground.  I can dig that ethos, but I was raised to pay no more that $3k for a car, and drive that into the ground.  I can't say which is a better idea - there's certainly more risk involved with the $3k plan, but you can skip comprehensive coverage with the $3k plan, and that means significant savings.
I'd love to hear more on this topic because we are starting to consider a replacement vehicle (but honestly, I think we'll drive this car until it becomes cost prohibitive to repair it - better for the environment and our pocketbooks).

[gooki]

$1,000 a year is a good standard amount to expect to pay.

[SamV]

$1000 or less is a good amount, but you don't have to buy a beater to get there. I have been buying 3-5 yr old cars from CL with 30-45K miles, keep them for 3-4 yrs and sell them again on CL. In last 8 yrs and 3 cars later, I am spending about $850/yr. Since the cars are newer, you don't spend much on the maintenance. Other than regular oil changes, you may need 1 set of brake pads. The trick is to find the right deal on CL. If you can find something below a couple of thousands less than KBB Private Party value.. you are good.

[liquidbanana]

If you can find something below a couple of thousands less than KBB Private Party value.. you are good.

Man, how do you do this? lol I have had an impossible time finding cars on craigslist that are even at the KBB Private Party value....most people are asking way above this.

[ivyhedge]

Man, how do you do this? lol I have had an impossible time finding cars on craigslist that are even at the KBB Private Party value....most people are asking way above this.

In certain regions of the US, "values" on used vehicles 1-2yrs old increased nearly to the price of a similar vehicle new (especially alternative powered ones). I witnessed this in Boston and DC. We have sold three cars on CL since 2006 - two for profit and one right at Black Book into that wave, although nationally, with media moving on to other issues, the overpriced used trend has crested in many locales.


Not to sound preachy, but keep in mind that *many* folks on CL don't tend to be Mustachian and are, in fact, likely to part with a vehicle for considerably less than asking price. Often, they're ready to "trade up", pay off bills, move, or sell because they can no longer make payments on the ride...

[Spork]

In certain regions of the US, "values" on used vehicles 1-2yrs old increased nearly to the price of a similar vehicle new (especially alternative powered ones). I witnessed this in Boston and DC. We have sold three cars on CL since 2006 - two for profit and one right at Black Book into that wave, although nationally, with media moving on to other issues, the overpriced used trend has crested in many locales.

We saw this, too.  Used car prices are a bit high here and the pickings are a little thin.  We did finally luck out and find one, but it took a while.

[jrhampt]

I got my 2001 Toyota Echo used in 2006 for $5500, and it still has less than 100k miles on it, although it's almost there - I got it with $30k miles or so already on it. I expect to get another 100k miles, which could take me another 10 years at least.  Repairs and maintenance have been extremely minimal.  My husband does oil changes and brakes.  I had some sort of squeaky belt issue and a bent axle (entirely my fault) that I had to take it into the garage for a couple years ago, but really I think that's been it for actual garage visits.  I've had to get one set of new tires for it, replace a window (tourist visit incident - apparently the Mark Twain house is in a bad neighborhood), and think I have replaced the battery once also.  It is an absolute gem and completely reliable.

[Jamesqf]

In certain regions of the US, "values" on used vehicles 1-2yrs old increased nearly to the price of a similar vehicle new (especially alternative powered ones).

I think we must have a somewhat different idea of what's a suitably Mustachian used vehicle.  1-2 years is same as new: with one exception (my Honda Insight, which was as much as geek toy & environmental/political statement as transportation) I've never bought
anything newer than 10 years old.