Car choice when downsizing

[MichaelR]

I am a new convert to the Mustachian way and one of my first tasks is to downsize my SUV. I have test driven a number of 1.5l cars - but I have got increasingly confused about the merits of gas over hybrids and now the full electrics.

I have got it down to a choice of 3 and for cost comparison I am quoting the new price in New Zealand dollars. The Prius C and iMiev are not available as used cars yet. Any advice appreciated:

Mazda2. $25,155.      6.4l /100km or 37mpg
Prius C.  $31,280.      3.9l /100km or 60mpg
iMiev.    $59,990

[James]

None of the above is a mustachian car unless you are already FI and it's a personal priority for you.

This will give you a better idea of what to look for: http://www.mrmoneymustache.com/2012/03/19/top-10-cars-for-smart-people/

Or maybe there is a reason you are looking at such expensive vehicles?

[englyn]

Wow, and I thought cars were expensive in Aus. Mazda2 $16450 here. Buying mine I found that cars 2 years old or so were not much cheaper than new.
If I had been thinking more mustachianly at the time I could have got a used corolla (5yo or so) for less than 2/3 of that. Those things are indestructible.
Also, figure out the amount the lower fuel cost of a Prius (or diesel) would save you over the expected life (in km) of the car. It is quite likely not to be worth the extra up front cost.

[Jamesqf]

First thing to do is to sit down and figure out just what it is that you do with a car.  A daily commute to work on city roads?  Frequent drives to mountains for hiking/skiing/whatever?  Do you drive alone, or with company (including dogs)?

Then you look at cars which will meet those needs/wants, and sort by price, reliability, operating cost, etc.

[MichaelR]

Cars are expensive here, although this is NZ dollars we are talking about so Americans please take off 20% when looking at them. I quoted the new prices to give a fair comparison, on the basis that used car prices would have the same relative difference in price (not entirely true I know). Obviously the best financial option is to buy a used car.

But MMM has recommended both the Prius and the iMiev despite them being more expensive because of their fuel saving and the need to support the electric industry for the environment. See http://www.mrmoneymustache.com/2012/09/13/electric-cars-are-they-for-real/ and http://www.mrmoneymustache.com/2012/03/20/toyota-prius-ass-kicker-or-trouble-maker/

So given the relative cost difference, do I go for a cheaper gas car, a more expensive hybrid, or even more expensive electric? I am leaning towards the first.

[gooki]

How many km do you travel per year?

Assuming 15,000km a year, $2.00 per litre, and $0.25 per kWh

Mazda 2 = 960 litres per year = $1920 per year
Prius C = 585 litres per year = $1170 per year
iMiev (12.3 kWh/100 km) = 1845 kWh per year = $ 461 per year

Let's also assume 10 year ownership of the vehicle, and the cost of electricity and petrol increasing at the same level.

iMiev = baseline
PriusC = $7090 more in fuel consumption over its lifetime
Mazda2 = $14990 more in fuel consumption over its lifetime

So basically it comes down to a lifetime fuel saving of $7000 when stepping up from petrol to hybrid or hybrid to all electric.

[MichaelR]

Thanks Gooki that is really helpful.

[smedleyb]

I am a new convert to the Mustachian way and one of my first tasks is to downsize my SUV. I have test driven a number of 1.5l cars - but I have got increasingly confused about the merits of gas over hybrids and now the full electrics.

I have got it down to a choice of 3 and for cost comparison I am quoting the new price in New Zealand dollars. The Prius C and iMiev are not available as used cars yet. Any advice appreciated:

Mazda2. $25,155.      6.4l /100km or 37mpg
Prius C.  $31,280.      3.9l /100km or 60mpg
iMiev.    $59,990

First off, what is your current situation with your SUV?  What's it worth, is it paid off, how much do you actually drive, etc.?

Second, listen to James.

[StarswirlTheMustached]

Two words, my friend: Geo Metro.
Sure, they haven't made them for a decade, but that means they can be had for a song. And the mileage is unbeatable by just about anything that burns gasoline.

If you aren't buying electric for feel-good reasons, why on Earth would you get a new car?

[MichaelR]

I guess I am attracted to the idea of a zero emission car for environmental reasons. But basically they are just too expensive in my country. I might revisit that option in 5-10 yrs as hopefully the tech gets cheaper.

I am still investigating the used Prius option. But will probably end up with a used gas car.

[Zaga]

We've been trying to figure this out too.  We have one commuter car and one large SUV.  The SUV is staying, we use it weekends for hauling and for pulling the RV.  Since we commute together, the commuter is piling on the miles, also it's a bit of a crappy car and keeps breaking.  At only 160K miles it's close to the end of its usable life, sigh. 

We're planning on replacing with a Honda Fit sometime next year, once we have the money saved up to buy it in cash.  It took quite a bit of testing to find a car that was comfortable for both my husband and I, I'm 100 pounds and short and he's 300 pounds and tall.

[frugalman]

I have a Honda Fit. It's reading 39 mpg this week with the warm weather. Great interior volume, headroom, cup holders, visibility, versatility. Love this car.

[gooki]

I guess I am attracted to the idea of a zero emission car for environmental reasons. But basically they are just too expensive in my country. I might revisit that option in 5-10 yrs as hopefully the tech gets cheaper.

I am still investigating the used Prius option. But will probably end up with a used gas car.

Just be aware there is no such thing as a zero emission car. Gas emissions are created with every new car that pass through the production line. As a society we will often be better served by utilizing existing vehicle stock (with some exceptions).

[MichaelR]

Thanks again Gooki. I am starting a thread on finance investment in NZ also.  Thats my next step.

[chucklesmcgee]

I guess I am attracted to the idea of a zero emission car for environmental reasons. But basically they are just too expensive in my country. I might revisit that option in 5-10 yrs as hopefully the tech gets cheaper.

I am still investigating the used Prius option. But will probably end up with a used gas car.

Well, it's zero emissions coming out of the tailpipe. You're still probably using fossil fuel energy to fuel the thing. And you go through the equivalent of 100s of barrels of oil to forge those raw materials into a car and ship the thing out to you. It's hardly green.

I like the Tesla Model S and think it's well marketed to appeal to the sorts of people who like to spend $100k on luxury sedans, but let's be real here, buying a new car doesn't do the environment any favors.

[nktokyo]

From a fellow Kiwi all those prices look high. What can you get for under $15K?