Sorry I should have mentioned that the Explorer is dying. Purchased at 178,000 miles in 2008 (dumb). 220,000 now. Numerous repairs every single year I've had it. Currently have a transmission issue going on. Just had a wheel bearing replaced. Dad paid for that and new tires. Midas tells me every time I get an oil change that my suspension and exhaust could use work. Was pulled over in the summer for the exhaust being too loud (might have been a bored cop though). I would have no problem with keeping what I have, but it's been a huge money sink. Interior is in great condition for it's age. This has definitely made me cynical about higher mileage used cars - trying to shake that impression.
Ok. First off, there are a lot of miles between 0 (what you want to buy) and 220K (what you own). About 220K, in fact. Also, you don't
need to buy a car -- any car --
tomorrow. Actually, in this regard, you are a pretty well-positioned vehicle shopper: you are in search of a car, but you have one that works that you can use for now. Does thinking of the Explorer that way help?
Why don't you spend a few weeks shopping for a used car you can afford (my advice would be to start with ones you could pay cash for using the $2k balance in your checking account, and again, remember, I know of what I speak ... I bought a car for not much more than that within this decade. There are several Hondas on my local Craiglist listed just
today that are owner-listed, ostensibly in good running condition (obviously you do want to get this checked out), $2K or less 200K miles or less, and less than 20 years old. Some not much more than 10 years old.). You don't have to
do anything (buy anything), just look around at what you can find and think about how nice it would be not to add a car payment to your expenses.
I've been where you are; in grad school, I sold my perfectly good Datsun 210 because it was requiring about a $200 repair each month and was about 12 years old and had about 140K miles on it, and it just seemed like it was time to replace it (I knew the person who got the car from me, and it ran many, many more years). I replaced it first with a used truck that I didn't get properly vetted (and should have recognized that the time pressure being put on me to buy it was a red flag), subsequently sold that (honestly, i.e., full disclosure) as something that needed its engine rebuilt, and financed and bought a new truck that I very much wanted. It wasn't a disastrous plan; the truck (a small foreign model) was an inexpensive model, I drove it for many, many (14 years, 200K miles) with no problems, and enjoyed it. And I had no student or other loans when I took on the car loan, and was in a degree program that provided me with a stipend (i.e. I was being paid to go to school). Still, it wasn't one of my brighter financial moves and it's not something I can advocate -- particularly not if those other conditions (regular if modest stipend, no debt) aren't met.
Shop around. At least assess what your low-end options are.