Note: I am a car freak. I like cars. Really. But...
In your case I'd suggest you rent. Maybe owning a car (if done right, and with a bit of luck) will be cheaper, but cars are like pets. You have to take care of them. They require attention. For some people that's ok, some even like it and find recreational value, but if you don't, it can be very annoying. Some people just want their cars to be there, and to get them from point A to B. And they don't want to have to bother too much. Some cars can do that. For some time. But eventually, everything wears and needs maintenance- or it will break.*
If you decide to own a car, I'd rather deviate from the mainstream "get a slightly used Corolla or Civic"-advice. In my opinion, there are
two strategies that work. Both involve getting much older cars - 15 to 20 years, or even older. Both strategies have one common element: to avoid depreciation.
1. buy a pristine car that will certainly become a classic. I did so with my three Mercedes.
#1 was a 200d (MY 1983), bought in autumn of 2003 with 140.000km for 2500€, sold 14 month later with 96.000km more on the odometer for 2350€. Repairs: new speedometer cable for 57€ (including work at a Mercedes dealership!), new shocks around 200.000km for about 500€. Rust protection ca 400€. Else only regular maintenance (every 10.000km oil change and inspection of the chassis - 100€, every 20.000 km replacing air and fuel filters (20€), adjusting valave clearance and lube door hinges myself.
#2 was a very well equipped 300d (MY 1984) in absolutely insane condition, completely stripped, rustproofed and reassembled by the previous owner with only 100.000km. I paid 6000€ for that, drove 80.000 absolutely trouble-free km and then sold it, as the eco-fascist government decided it could not be driven into bigger cities (yes, the w123 community was working on a particulate flter to solve the problem, but so where others, and the federal agency to approve the filters completely drowned in work and admission of the filter was delayed 2 years...). So it became completely useless over night and the market for older diesels collapsed, but because of it' pristine condition I was able to sell it to a collector in Denmark and get at least 3800€. In retrospect, this was a very dumb move. I should have just kept it, unreistered it and stored it in the garage, either until the filter was admitted or until next year, when it gains veteran status and will be exempt from all "environmental" prohibitions. Comparable cars trade for above 7000€ now...
#3 was a well-used, but well kept 560 SEL (MY 1990). 80's S-class. The ultimate sign of power and wealth. Shut the door and enjoy the qietness. Welcome home in a world of blue leather and walnut wood, and the star sparkling in front of you... Wonderful. The big V8 was nice, too. ;-)
Drove this car about 50.000, replaced ignition cables and distributor cap (300€), had the power steering pump sealed and the hydraulic level control on the rear axle redone (1000€). Else only routine maintenance. Sold it prior to starting studies, as it had developped a noise on the right cylinder bank which could have been either a bad camshaft or a cracked exhaust manifold (both insanely expensive), the compressor of the ACC was worn and the front axle needed to be overhauled - I expected around 3000€ for all of this. Which would have been very fine If I intended to keep the car, but being a student with a reduced income and three car-toys is rather unmustachian. So I sold. Got 5000€ back from the 5900€ I had bought it for.
This car is especially interesting, because in spite of it's horrendous fuel consumption, my total costs (at 15.000km anually) were 32ct/km. This is exactly the same what the ADAC (biggest german motor club) assumes for a basic trim (cars in Germany come with almost no extras, unlike in the US: you have to pay for everything extra) Golf TDI (which, over here, is considered a very reasonable and frugal car). Yes, the S-class has been my most expensive car on ct/km-wise, but it was far cheaper than one would have thought.
2. Buy a beater.- My current
Saab 900 turbo** (MY 1985) cost 1000€ when I bought it with 300.000km on the odometer. I knew it would need immediate repairs for around 2500€, but overall substance was ok. In the meantime, it has consumed A LOT more money than that, but the odometer reads 512.000km - and cost per kilometre is about 24ct. Choosing a non-turbo might have been cheaper, but still, it's cheaper than what most aquaintances pay for their used compact cars - and so much more fun!
- before that, I had a Saab 90. Bought it for 1200€, replaced ignition cables and radiator (500€), drove it for 35.000 trouble-free km, and traded it in with my garage for about 1500€ worth of work on the 900 turbo.
- Last year, I had my
cheapest car ever***. Bought a 1996 Saab 9000 Griffin v6 for a bottle of wine. (Dagernova, Spätburgunder/pinot noir, Dernauer Kosterberg 2008. Cost 6.99€). I knew the car had issues: some rust, one brake caliper stuck, and some transimssion misbehaviour. 850€ later the rust was taken care of, the brakes repaired and the car was road-safe again. Drove 48.000km (with some maintenance and additional work) and sold it for 130€.
On this car, I came out with 19.4 ct/km. This is cheaper than even a crappy romanian Dacia Logan could do! And I had leather seats (electrically adjustable, with memory), walnut dashboard, ACC, cruise control, power everything, reading light in the fond and so on. And a nice 211hp v6. Value-for money-wise, absolutely impossible to beat.
But both these strategies do only work if you like cars - and don't mind they cost some effort. These strategies will be cheaper than renting, but only if you put in this effort. And there is, as always, some risk involved. If you buy the wrong car or neglect it, it can become a money pit.
If you do not feel comfortable with this, renting is the better choice for you.*
Which is why people often sell cars if the first troubles come or are expected, or if repairs excede "market value" of the car. Which, from a financial point of view, is silly. With some a little bit more effort, the very same car will do 200.000 km more. What counts is cost per km (or mile, if you happen to live somewhere outside the metric world). Getting rid of the car for fear of repairs and buying a newer one means you are paying extra for the comfort of not having to deal with the hassle of keeping your car in good shape.**/***
link to my blog. Written in german, but perhaps google translate might help.