Almost made a new topic, but figured I might as well revive this one.
While I managed to keep this 2002 for another 7 months, I think it's about time I actually replace it. Last weekend the bad weather made me lose confidence in my safety in my current car, because I lost control twice it the same day. Now don't get me wrong, it was on my agenda to get some fresh tires anyway (which kind of makes it my fault) but in any case the sudden snow storm last weekend snuck up on me. First time I lost control I was slowed down enough that I only hit the barrier at low speed and merely knocked my grill loose, scraped my bumper, and slightly bent the hood. As I continued slowly to my destination, I then slid into the ditch and waited for a tow truck for an hour who took me to a hotel room for the night and I replaced my tires in the morning.
The fact is my car has no ABS, no traction control, no ESC, and since I don't want to spend money on cosmetic repair I'm instead willing to spend for my safety.
The dilemma I need help with from my fellow mustachians is how much I should spend on my next used car. Like any good mustachian, I want to make sure I buy a car I would be happy with for at least a decade. The problem is, this 24.7 year old IT consultant isn't so sure he wants to spend the next 10 years without fancypants features like a touchscreen, bluetooth, heated seats, etc. :)
I was actually on track to invest 82% of my $89,200 take home pay that I'm going to make this year. (My bonus is paid next month and it's already determined) Here are the 3 scenarios I can choose from, based on the amount of money I already had put aside for a car plus minor tweaks to my budget:
If I maintain an 80% investment rate, I could spend up to $5k on a 2009-12 car with minimal, if any, bells and whistles (I would have to go aftermarket to add high tech features)
If I maintain a 75% investment rate, I could probably spend $9k give or take, enabling a purchase such as a rebuilt '13 Focus Titanium, '13 Kia Optima EX (loaded), '13 Dodge Dart Limited, Chevy Cruze, etc, that I saw listed on craigslist
Last, I could cease any additional investments, which based on my Nov and Dec income would let me spend $15k cash on a super nice used car and my investment rate would be 68% (ouch) But hey, that could buy me a nice Volt or Fusion or some other gorgeous car.
I'm mainly debating between the first two options, I can't bring myself to spend $15k on a car. I could be willing to accept a 75% 2015 investment rate assuming that my maintenance costs would be low for some time, which lets me make up for it by investing 85-87% in 2016. But still, the hardcore investor in me says that if I buy the $5k car, I'll be able to break even more quickly as I drive it for mileage reimbursement for my job. Not to mention the capital gains on my savings.
What do you guys all think? On one hand, I'm leaning closer to spending $9k...but still, I've made it for the last 7 years in a basic car, maybe I could do it again. Should I treat myself since I've done so well? I mean, my net worth is $200k already. When I'm 30 I'll probably look back at this post and laugh.