should I buy this car?

[kenaces]

I am on the path to a "low cost of living FIRE" in ~10 years.  My wife and I have been sharing one car for the last 5 years(about to be paid off 2015 toyota camry).  Pre c-19 I was spending ~$65 a month on uber and growing increasingly frustrated with the one-car situation.  So if I was making this choice 4-5 months ago I would have snap purchase the car. 

Since c-19 both of our incomes have taken a big hit.  It is really unclear to use how quickly our incomes will rebound 6-12 months?  We both can work from home so in the near term(6 months?) we don't need a second car.  She is an online math tutor and part-time dog/house sitter, and I am a poker player. 

A trusted friend of mine offered to sell me his mom's 1992 toyota corolla for $1000.  It only has 45k miles and was only driven by his mom.  He currently dives it once every week or two but it needs some work(front rotors, brakes, AC charge, water pump, timing belt, fluid changes).  He estimates the cost to fix all should be $1200-1500.  He also pointed out that if I just wanted to limp along with just short(non-highway trips) I would only need to charge the AC which would be a must since we live in South Florida.  The body is in very good shape with no rust since it was garaged for its 28 years.

The Kelly Blue Book value for "fair"(lowest rating which indicates vehicle needs some work) is $1098-1899 for a private party transaction.

I think it will cost me ~$400 to register and put tags on the car.  As I will get a multi-car discount my insurance(no comp/col) cost will go $43/mo

So we likely to be out of pocket $2600-3100, and increase my monthly bills by $43/mo plus ongoing maintenance costs. 

Thoughts?  Advice? Anything else I can clarify?  Should I buy this car?

[Paper Chaser]

You have uncertain income and no immediate need for it. Are you just considering it because you think it's a good deal? Would you be doing any of the needed work yourself to save money? It seems like you want to spend thousands of dollars on a 30 year old car that you don't need now, and may not need moving forward.

If you're financially secure, then sure go for it. It's relatively cheap, and may even be a pretty reliable little beater. If you're just getting started, emergency fund is low, etc then I'd skip it.

[Dave1442397]

If you don't really need a car right now, I'd skip it. While the Corolla is a great car, there are plenty of options out there for under $2500. Check out this video -https://www.youtube.com/watch?v=j4YkCWsFKuQ

I'm sure you'll be able to find something reasonable when the time is right.

[alsoknownasDean]

Are you able to DIY some of the mechanical work? If you're paying for all of the work to be done, you might be better off just spending $3000 or so and buying something quite a bit newer.

[kenaces]

You have uncertain income and no immediate need for it. Are you just considering it because you think it's a good deal? Would you be doing any of the needed work yourself to save money? It seems like you want to spend thousands of dollars on a 30 year old car that you don't need now, and may not need moving forward.

If you're financially secure, then sure go for it. It's relatively cheap, and may even be a pretty reliable little beater. If you're just getting started, emergency fund is low, etc then I'd skip it.

Before C-19 I had been giving serious thought to getting a second car.  I wouldn't be doing any of the work on the car as I would be more likely to make the car worse!

I wouldn't say I am financial secure as I haven't reached FIRE but I do have decent sized nest egg/saving and if I buy I would just pay cash for car and repairs.

Thanks for your thoughts

[kenaces]

If you don't really need a car right now, I'd skip it. While the Corolla is a great car, there are plenty of options out there for under $2500. Check out this video -https://www.youtube.com/watch?v=j4YkCWsFKuQ

I'm sure you'll be able to find something reasonable when the time is right.

Thanks for the video - I thought it was interesting that about 2 minutes into the video he said I would normal suggest buying a toyota but you can't normally find them for less than $2500 :)

[kenaces]

Are you able to DIY some of the mechanical work? If you're paying for all of the work to be done, you might be better off just spending $3000 or so and buying something quite a bit newer.

No I wouldn't be doing any of the work - Thanks for your post

[GoCubsGo]

A 45K mile Toyota all in at $2,500?  Yeah, I'd buy it in your situation.  If you had to sell it for any reason, I'd imagine the new parts and low mileage would allow you to recoup most of that price.

[bloodaxe]

Why are you growing frustrated with your current one car situation? Why is Uber not working?

I'm sure you can afford it. But I wouldn't buy it considering all the headaches of having a car (maintenance, traffic, parking, gas, etc.).

[kenaces]

A 45K mile Toyota all in at $2,500?  Yeah, I'd buy it in your situation.  If you had to sell it for any reason, I'd imagine the new parts and low mileage would allow you to recoup most of that price.

Yeah my friend selling the car said similar.  So having a 45k toyota for $2500 seems like a great deal BUT I don't know how much I should discount that value with the fact that the vehicle is 28 years old???

[kenaces]

Why are you growing frustrated with your current one car situation? Why is Uber not working?

I'm sure you can afford it. But I wouldn't buy it considering all the headaches of having a car (maintenance, traffic, parking, gas, etc.).

No frustration now that I am c-19 hermit.  Before corona juggling the car sharing with my wife was a weekly problem and often an irritation for me.  She uses the 15 camry 90% of the time so this old beater car would be mostly for my use.  I guess in some ways it would be a luxury since I have done OK without for last 5 years.  But a part of me thinks the utility+happiness factor make spending the money worth it.  Of course this is predicated on getting back to normal which I would guess is 6-18 months away. 

Uber was ok but it would cost $50-100/mo.  I tried to only use it for short trips mostly to work.  If I used uber for everything the average monthly expense would have been much higher.  I would prefer to not have to wait for Uber, have a bit more freedom, avoid the occasional crazy uber driver.

Yeah I can "afford" it but I am working hard to hit FIRE so just trying to think through this decision.  I don't find traffic/parking to be an issue.

Thanks for your reply

[Just Joe]

Since you don't NEED the car immediately - and the investment is so low, consider learning to DIY. You probably have the spare time to watch YouTube videos and learn.

I think a $1K car is great but but not if I need to pay someone $2K to straighten out some simple DIY topics.

Otherwise I'd suggest skipping it. Would an ebike get your second vehicle needs done? How about a regular bicycle?

[ChpBstrd]

The 28 year old Corolla sounds like a deal for a restoration enthusiast more so than cheap transportation. Do not underestimate the challenges that will come from replacing brittle and crumbling plastic and rubber parts, and replacing them with rare parts. Every gasket and hose on the car is about to start leaking. The AC doesn’t work because the deteriorated hoses let the now-banned refrigerant leak out. The old coolant may have rusted out the head gasket. Etc.

As I said, less a car and more a hobby.

If you can hold out just a bit longer, there will soon be a lot of low income people unloading cheap used cars, some with features like airbags and parts availability! Unemployment is high and a lot of people will be unloading their 2nd cars now that UI benefits have been cut. Then you have the dumping of rental cars and corporate cars and it all adds up to better deals ahead.

[BikeFanatic]

This car is almost 30 years old, I think you probably can do better and what is the rush?
Adjusting to a one car family is tough at first, I used to use zip car and that’s another alternative.
Ebike could be a lot of fun and that cool breeze as you ride in the morning, it is a life changer IMO.
100 a month for Uber is 2400 over 2 years, that used car will cost you more than that. I say hold off on the purchase.

[StashingAway]

If you had the ability to DIY, it's a great deal. Since you don't, I would say pass. You could easily total it if you were to find something else wrong that you cannot fix. The list of fixes that your friend gave you are the known issues, and as soon as a ball joint goes out or something then you have just lost money.

[MrThatsDifferent]

So everyone is suggesting to take your $3k and get a car that will be more reliable. Do that and be free. Life is short.

[kenaces]

Since you don't NEED the car immediately - and the investment is so low, consider learning to DIY. You probably have the spare time to watch YouTube videos and learn.

I think a $1K car is great but but not if I need to pay someone $2K to straighten out some simple DIY topics.

Otherwise I'd suggest skipping it. Would an ebike get your second vehicle needs done? How about a regular bicycle?

Yeah there is zero chance I am taking this on as a DIY project

As I mentioned in OP I have a bike :)

Thanks

[kenaces]

The 28 year old Corolla sounds like a deal for a restoration enthusiast more so than cheap transportation. Do not underestimate the challenges that will come from replacing brittle and crumbling plastic and rubber parts, and replacing them with rare parts. Every gasket and hose on the car is about to start leaking. The AC doesn’t work because the deteriorated hoses let the now-banned refrigerant leak out. The old coolant may have rusted out the head gasket. Etc.

As I said, less a car and more a hobby.

If you can hold out just a bit longer, there will soon be a lot of low income people unloading cheap used cars, some with features like airbags and parts availability! Unemployment is high and a lot of people will be unloading their 2nd cars now that UI benefits have been cut. Then you have the dumping of rental cars and corporate cars and it all adds up to better deals ahead.

I hadn't considered this sad but likely outcome. 

Thanks

[kenaces]

Thanks for all the replies :)

[ChickenStash]

I'll throw in with those that say if you don't actually need it, don't buy it. As you've already listed, there's quite a few upfront and recurring costs associated with the purchase that just don't pencil out for something that's not really needed.

On a related note, I wouldn't recommend an old, cheap car to someone who would use a professional mechanic to handle repairs. That drives up the TCO to the point were it starts to make sense to get a newer car right off the bat. Of the stuff that needs fixing in that list, most of that could be done pretty easily and inexpensively. The timing belt might be borderline but a slightly adventurous DIYer could do it.

[StashingAway]

On a related note, I wouldn't recommend an old, cheap car to someone who would use a professional mechanic to handle repairs. That drives up the TCO to the point were it starts to make sense to get a newer car right off the bat. Of the stuff that needs fixing in that list, most of that could be done pretty easily and inexpensively. The timing belt might be borderline but a slightly adventurous DIYer could do it.

+1.

[zolotiyeruki]

$1000 to buy plus $2000 to repair will pay for a LOT of months of Uber rides at $65/mo.  Now that your needs are even less, it doesn't make sense for you to buy that (or any other) car.