Debt Free Car Project

[GoCubsGo]

Edmunds.com (popular car site) is in the midst of a year long series of articles documenting the purchase and maintenance of a "Debt Free Car" ($3,500 max purchase price).  It's pretty well thought out and may be of use to people who are deciding to purchase a 100,000 mile plus car either out of necessity or choice.  Curious on Mustachians thoughts on this (this assume's someone wants/needs to drive a car). 

Just started reading the MMM blog and am slowly changing my ways (I'm a closet car nut so it's difficult), not sure if I would have the fortitude to go this route unless by necessity. Either way, interesting article for those who may want to ditch the new car for a more affordable automobile.

http://www.edmunds.com/car-buying/the-debt-free-car-project.html

[Paul der Krake]

Hey GoCubsGo,

Welcome to the forums! You will find that many Mustachians drive old cars. 100k miles is nothing, there are people here who buy cars with 150k+ miles and drive them to the ground, another hundred thousand miles later. And they don't all have beards and hawaiian shirts.

The low cost of registration, insurance, and smart housing choices leading to low annual miles allow you to drive without forking over mucho dinero.

[ShavenLlama]

Loved that link, I ended up reading the whole thing.

I was sad yesterday when I checked the BlueBook on my ~175K mile 2000 Grand Cherokee- it's apparently not even worth $2k. And it needs new tires, which have been quoted as high as $700 installed (I haven't shopped it around yet, just trying not to drive in the rain!) which is almost half the value of the car!

I'd love to trade the Jeep for a Mini, but I don't drive very much and it is nice to have the cargo space for trips and moving large items. And I really don't want to deal with the purchase nonsense or inheriting someone else's unkown problems. I'll probably just keep driving this one until it falls apart, or at least until some new driver in the family needs a cheap vehicle, and use that as an excuse to upgrade. :)

[Jamesqf]

Skimming through a few of those articles, they still seem to spend an awful lot of money on maintenance & repairs, far more than any frugal mustachian would.

[GoCubsGo]

The decision to drop a high priced car (assuming your not under water on the loan) for a low priced/high mileage one would probably save quite a bit for most trying to achieve early FI.  I was surprised by  the $300+ monthly average budget needed to keep a high mileage car going (and that was with auto experts purchasing what appeared to be a great used car).  That was quite a bit more than I had expected and would make me lean away from that.  I would probably go with a newer vintage using stricter criteria and spend a bit more.

I wonder if others on this forum who drive high mileage cars (like the two of you who responded to the post) have had a similar monthly expenditure once you get past the 100K mileage mark.

 175K miles is great!  I've never driven a car past 60K miles (face meet fist) so I need to think hard about my auto expenditures going forward (afraid to even admit my current car on this forum... even though I paid cash and don't pay interest on it).  Guess we all start somewhere.

[ShavenLlama]

In the article, they explain why they came up with that dollar amount- this is the average amount that someone with poor credit spends on a monthly payment. This seems super high to me, as I refused to pay a penny over $250 / month when I bought mine. But since they justified it as average, i'll accept it for their purposes.

As far as my monthly repairs, there have been a few times where a series of expensive repairs were needed in what felt like way too close of a timeframe, but (knock on wood) I haven't had anything come up in a while besides my need for tires. I wish I had better data to back it up, but I don't think my car has averaged anywhere near their allotted budget. Also, they mention in the last post that after the first couple of months in the red, their repairs became much cheaper and that they now have a pretty sizable surplus in the repair fund.

So what do you drive, Cub? The Toureg? Infiniti QX? Escalade with mini-bed and racing tires? ;)

[chicagomeg]

Some of the quotes on this are hilariously bourgeoisie. My personal favorite:

"It was a remote area, but I took some comfort from my inexpensive GPS navigation device mounted on the windshield, which seemed to work just as well as one of the $2,000 factory-installed units that come in pricey option packages on many new cars."

[SwordGuy]

The big problem with this article is it uses the average US monthly car payment price as a comparison. 
That price is hundreds of dollars higher than it needs to be for a NEW car.

[Jack]

The key to having an old car cheap is realizing that not every little thing has to be fixed, fixed immediately, or fixed by a professional mechanic using new parts. I can make a list 20 items long of things that "need" to be fixed on each of my circa-200k-miles cars. Am I going to fix all of them? Hell no! Am I perfectly OK with that? Sure!

[Skyn_Flynt]

The old car strategy may become more difficult in the future. More stuff keeps being added to OBD codes, and some people live in very nanny-state restrictive cities or states where ANY dashboard light or "code" means a defect to be fixed in order to get your plates renewed. This is why you won't see cars older than 10 years in Japan. They are inspected so thoroughly that an old car comes with too much expense and hassle.

I have added up my receipts and it does cost me around $200 a month to keep my 13 year old car running. Sometimes you can go for months without any repairs, but then you get hit with $500 to $1200 for something. In the past year I've had to get a new steering rack put in, a new water pump, replace the hubs and brakes. It adds up but I've still saved versus a new car payment.

I'll admit I hang out at new car websites as well as MMM. I probably will spring for something in a few years. But I've only bought two new cars in my life (still on #2 right now), paid them off in one year, drove each for 10 or more years.

[kendallf]

The key to having an old car cheap is realizing that not every little thing has to be fixed, fixed immediately, or fixed by a professional mechanic using new parts. I can make a list 20 items long of things that "need" to be fixed on each of my circa-200k-miles cars. Am I going to fix all of them? Hell no! Am I perfectly OK with that? Sure!

This.

I might spend $1k in maintenance on my cars, per year... and that's for 4 vehicles! 

I'm a car guy, and usually have a project going, but my family's drivers are all used cars, with the newest being my wife's 2004.  She has a very un-Mustachian 60 mile RT commute (coming down to 12 miles and some bike commuting when we move this fall!). 

Otherwise my cars are usually 15-20 years old.  My daughter is driving a 1995 Camry that I paid $400 for about 5 years ago; I have spent about $1500 on it over those years, total including tires.  It currently has 273,000 miles and drives reliably between Jacksonville and Tallahassee, where she's in college.  Is it ugly?  Yes.  :)

My younger daughter and I share a 1994 Lexus SC300, which features the best engine Toyota ever made, the 2JZ-GE inline six.  I paid $4400 for it 6 years ago, and it currently has 193k, runs beautifully, and looks good.

[Jamesqf]

I don't even get close to $1K/year, especially if you subtract maintenance costs that would be the same for new or used vehicles.  After all, you need to do oil & filter changes on schedule, whether the car's new or got 200K miles on it, likewise tires wear at the same rate on new and used cars...

I don't keep accounts of expenditures, but from memory here's maintenance & repairs over the last few years:

2000 Honda Insight, about 165K miles.  Maintenance is oil & filter change every 7500 miles (or a little less than a year).  About $25 for oil & filter (0W20 synthetic is expensive, but the car only takes 2.5 quarts).  Also put new tires on about 4 years ago, wiper blades every couple of years.  Repairs have been an oxygen sensor replacement about 3 years ago (about $100), and a couple of headlight bulbs.  Oh, and new disk brake pads a couple of years ago.

1988 Toyota Pickup, about 230K miles.  Figure $20 for an oil change every couple of years (the interval is something like 10K miles, but I don't drive it all that much).  Also a couple of new tires this year, plus occasional wiper blades, a headlight, etc.  Only actual repair has been a new speedometer drive gear, about $40, and starter contacts, fixed with a couple hours work and a penny's worth of solder.  (I'll probably spring for the $15 replacement contacts when the weather warms up.)

So all told, I'd be surprised if expenses come to more than $100/year per vehicle.

[GoStumpy]

I love spending as little as possible on lowest-mileage possible vehicles... my wife's car we bought for $2800 (1998 VW Jetta) and it has 88k Miles, and my truck we bought for $1300 (1990 Chev 4x4 P/U) has 94k Miles... only maintenance we've done is replace the transmission in my truck, set of plug-wires, and new brake pads/rotors in her car..  that's about it!

But the list of to-do is a mile long
Fix drivers side window regulator in my truck
Fix passenger window regulator in her car
Replace sagging door in my truck
Replace windshield in her car, fix little rust bubble at the same time


Guess it's not as long as I thought!

[aclarridge]

Shouldn't there be a "Mustachian Automobiles" forum category? I think that's what this forum is missing...driving is a huge part of many people's lives and it can be a huge expense if not done in an intelligent way. Anybody else agree with me?

[Scottma]

Shouldn't there be a "Mustachian Automobiles" forum category? I think that's what this forum is missing...driving is a huge part of many people's lives and it can be a huge expense if not done in an intelligent way. Anybody else agree with me?

aclarridge, I totally agree - I was just thinking along these lines the other day. I was wondering what cars are the most reliable and accessible for weekend amateur mechanics to work on that have reasonable priced replacement parts...in other words, what's the best DIY car? I would be interested for different classes of cars... Any year/make/model is up for grabs...

[jpluncford21]

The decision to drop a high priced car (assuming your not under water on the loan) for a low priced/high mileage one would probably save quite a bit for most trying to achieve early FI.  I was surprised by  the $300+ monthly average budget needed to keep a high mileage car going (and that was with auto experts purchasing what appeared to be a great used car).  That was quite a bit more than I had expected and would make me lean away from that.  I would probably go with a newer vintage using stricter criteria and spend a bit more.

I wonder if others on this forum who drive high mileage cars (like the two of you who responded to the post) have had a similar monthly expenditure once you get past the 100K mileage mark.


 175K miles is great!  I've never driven a car past 60K miles (face meet fist) so I need to think hard about my auto expenditures going forward (afraid to even admit my current car on this forum... even though I paid cash and don't pay interest on it).  Guess we all start somewhere.

Before I converted I owned two cars, a 2004 Land Rover Discovery (dream truck since high school), and a 97 Honda Accord. I bought the LR with 75k miles on it and the Honda (150k miles)was given to me by my father when he bought his new car. I had all kinds of trouble out of the LR over the two year period that I owned it (great way to learn car mechanics btw). I eventually sold it and am driving the Honda. I have had NO issues with it what so ever! It now has 185k on it and is running strong with only minor maintenence like oil changes, plugs/wires, etc. The valve cover leaks a bit, but it's not a huge issue. Obviously it takes a lot of research and a little luck when buying  a high mileage car. If you choose right you may get another 100k out of it. I was comfortable making this my only car bc I knew the entire history (my dad bought it new). I'm now trying to convince the wife that when it eventually dies we should be a one car family.

[Jack]

what's the best DIY car?

The classic answer is air-cooled VW Beetle.

[jba302]

Shouldn't there be a "Mustachian Automobiles" forum category? I think that's what this forum is missing...driving is a huge part of many people's lives and it can be a huge expense if not done in an intelligent way. Anybody else agree with me?

aclarridge, I totally agree - I was just thinking along these lines the other day. I was wondering what cars are the most reliable and accessible for weekend amateur mechanics to work on that have reasonable priced replacement parts...in other words, what's the best DIY car? I would be interested for different classes of cars... Any year/make/model is up for grabs...

On top of car options, I'd love to talk regional considerations.. or just piss and moan about it a little. About 3 years ago, I had an 06 jeep (it's gone now, though the love remains...) and I live in MN. My buddy had an 03 jeep that spent it's entire life in AZ. The maintenance differences are similar, but profoundly more difficult - I would call a blow torch, 3' pry bar and 3-5lb sledge "basic gear" for any serious work due to the heavy winter salting, while the underbody on his looked nearly showroom (minus the rock rash naturally).

[StarswirlTheMustached]

Just started reading the MMM blog and am slowly changing my ways (I'm a closet car nut so it's difficult), not sure if I would have the fortitude to go this route unless by necessity. Either way, interesting article for those who may want to ditch the new car for a more affordable automobile.

How much of a car nut are you? A Lotus 7 costs 10k, if you put in the sweat equity-- or, rather a Lo-cost 7, a wonderful homebuilt clone, costs 10k. Into which you can put a Kubota diesel and an aerodynamic skin, and get a 100MG touring car -- it's the project car of Mother Earth News, of all bloody magazines to have a project car. The main page collecting their articles is here. I think it's the route I'd go, if I needed a daily driver and were handy enough. (neither of these facts is true, however.)

[Jack]

Just started reading the MMM blog and am slowly changing my ways (I'm a closet car nut so it's difficult), not sure if I would have the fortitude to go this route unless by necessity. Either way, interesting article for those who may want to ditch the new car for a more affordable automobile.

How much of a car nut are you? A Lotus 7 costs 10k, if you put in the sweat equity-- or, rather a Lo-cost 7, a wonderful homebuilt clone, costs 10k. Into which you can put a Kubota diesel and an aerodynamic skin, and get a 100MG touring car -- it's the project car of Mother Earth News, of all bloody magazines to have a project car. The main page collecting their articles is here. I think it's the route I'd go, if I needed a daily driver and were handy enough. (neither of these facts is true, however.)

A Lotus 7 (or Locost 7) is a daily driver the same way a motorcycle is... it's not the most practical car. Very cool with the diesel engine, though!

(I've thought about putting a diesel V8 in an old Corvette, which would be similarly cool and a more practical daily driver, but less efficient.)

[StarswirlTheMustached]

Just started reading the MMM blog and am slowly changing my ways (I'm a closet car nut so it's difficult), not sure if I would have the fortitude to go this route unless by necessity. Either way, interesting article for those who may want to ditch the new car for a more affordable automobile.

How much of a car nut are you? A Lotus 7 costs 10k, if you put in the sweat equity-- or, rather a Lo-cost 7, a wonderful homebuilt clone, costs 10k. Into which you can put a Kubota diesel and an aerodynamic skin, and get a 100MG touring car -- it's the project car of Mother Earth News, of all bloody magazines to have a project car. The main page collecting their articles is here. I think it's the route I'd go, if I needed a daily driver and were handy enough. (neither of these facts is true, however.)

A Lotus 7 (or Locost 7) is a daily driver the same way a motorcycle is... it's not the most practical car. Very cool with the diesel engine, though!

(I've thought about putting a diesel V8 in an old Corvette, which would be similarly cool and a more practical daily driver, but less efficient.)

Practical is a matter of perspective. For me, both a 2-seat locost and a motorcycle would be overkill; my daily driver is a bicycle, which is even less 'practical' to some.  (I'm headed home across a frozen lake through flurries tonight. "practical" hasn't much to do with climate, either.)
Although if I had a car, it would be for longer trips and I'd want a small backseat... so no to the locost.

Who mentioned the old VW beetles? Great for doing your own maintenance, but they're getting more expensive every year, it seems. I think I'd pick a similarly all-mechanical but less iconic vintage car so I'm not bidding against youth-reclaiming boomers.

[Jack]

Who mentioned the old VW beetles? Great for doing your own maintenance, but they're getting more expensive every year, it seems. I think I'd pick a similarly all-mechanical but less iconic vintage car so I'm not bidding against youth-reclaiming boomers.

I mentioned them... and isn't "getting more expensive every year" another way of saying "appreciating asset?" ; )

(Not that I'd advocate buying a car as an investment, but if you need a car anyway, why not get one that would go up in value instead of down?)

[kendallf]

James, you're doing amazing well!  I think the root of it is low annual mileage, from the sound of it..and that's something I'm working on for the rest of my family. 

On the "appreciate while you own it" theme, I regularly have old cars that sell for more than I paid for them.  Usually, however, I have put money into paint and engine work (I do everything up to and including engine block machining myself, but I do not paint any more).  It's a slippery slope and most people who buy a car to "restore it and make money" do not accomplish this.

I love the Lo-cost diesel!  I have thoughts in the back of my head for a track T roadster with a inline 6 cylinder turbo motor: ~1500 lbs., ~500 HP, and I think 35-40 mpg should be achievable.

[SwordGuy]

I mentioned this article to a great fellow at work.  His eyes bugged out when he found out that the average car payment was around $460 a month.

Another fellow happened to overhear and jumped into the conversation.  He's paying $600 a month for a truck.  And I don't know how much more for a new minivan.  And there's a third car payment in there somewhere.

Got to be at least $1200 a month in car payments!   That's $48000 a year in car payments!   Which means that with 30% taxes it takes an income of $68571 a year just to make the car payments!

And he feels perfectly justified that it's the exact right thing to do.   He and his wife are always driving other people's kids around for scouting activities or towing camping gear for other folks, etc. 

After the fellow left, the two of us just looked at each other.

My feeling is those other kids have parents and those parents can chauffeur their own kids and gear around the countryside on their dollars.

I like to be generous with my time and my possessions.  I have a great workshop and I let people come over and work in it.  I'll freely teach them how to make stuff and even throw in a few dollars worth of materials to get them started.  But I sure as hell wouldn't devote $68571 of my hard earned income each year for the privilege of doing so!   Jeesh!

[GoStumpy]

Funny that a $3000 truck and a $3000 minivan can do all the things those car payments can do :)

[Rangifer]

what's the best DIY car?

The classic answer is air-cooled VW Beetle.

Because you push it easier???


Best DIY car is gonna be something like a mid 90s Toyota Camry with the four cylinder. So much room in that engine bay it is ridiculous.

[Jack]

what's the best DIY car?

The classic answer is air-cooled VW Beetle.

Because you push it easier???

More like, because you can lift the engine out of it yourself without a hoist (so I'm told, anyway). It's also very simple, doesn't require many tools, has lots of aftermarket parts available and lots of good instructional books written about it, etc.

But if you want something "modern," I'd suggest a small, sporty Honda (CRX, Civic, Acura RSX, etc.) -- you want something that has a big enough enthusiast community that parts, specialized tools and help are easy to come by.

[StarswirlTheMustached]

It only takes a couple of minutes to drop the engine out of a stock Beetle, and all you need is a hydraulic jack. They used to have competitions to remove, rebuild, and replace the motor on those cars-- took around 10 minutes, I'm told.
Try that on your Toyota Camry. :P

That said, the Beetle does have its issues. The gas mileage on those old air-cooled motors is actually rather awful by modern standards, for one. For another, if you get into any kind of accident, you really are going to die. For a third, if you live in a road-salt region, they rust like a sunofabitch, and the first thing that goes is the ducts that bring heat up to the passenger compartment (and if you live in a road salt region, you tend to want heat). Still, they're lovely little cars for all that, and I can certainly see the appeal.

[Rangifer]

Wow, I had no idea they came apart that easily. The deathtrap part is still rather unnerving though.

[Scottma]

Wow, I had no idea they came apart that easily. The deathtrap part is still rather unnerving though.

No kidding!

So my dad has an '88 F150 that I've always pondering buying off him. I know it'll guzzle gas but I should be able to do quite a bit of maintenance myself, right? There's always seemed to be quite a bit of room under the hood when I open it up anyway... I'd use it only occasionally as I'm switching to a car-lite lifestyle.

[jpo]

Got to be at least $1200 a month in car payments!   That's $48000 a year in car payments!   Which means that with 30% taxes it takes an income of $68571 a year just to make the car payments!

No it's not, $1200*12 months=$14,400 per year... still ridiculously expensive though.

[StarswirlTheMustached]

So my dad has an '88 F150 that I've always pondering buying off him. I know it'll guzzle gas but I should be able to do quite a bit of maintenance myself, right? There's always seemed to be quite a bit of room under the hood when I open it up anyway... I'd use it only occasionally as I'm switching to a car-lite lifestyle.

By '88 they'll have moved to electronic ignition, and probably fuel injection, but I'm not sure. Both of which are good things for mileage but not for repairability-- it's the dead-stupid, all mechanical engine that you want if you want to be able to do everything yourself.

Wow, I had no idea they came apart that easily. The deathtrap part is still rather unnerving though.

So don't crash. :P
I heard that the fellow who designed the original Mini declared (in reference to its crashworthiness) that anyone who got one of his cars into an accident deserved to die. Of course, that wasn't entirely vindictive, as the Mini was built on a principle of "active saftey" to keep you out of an accident, but... sheesh.

[Jamesqf]

I heard that the fellow who designed the original Mini declared (in reference to its crashworthiness) that anyone who got one of his cars into an accident deserved to die. Of course, that wasn't entirely vindictive, as the Mini was built on a principle of "active saftey" to keep you out of an accident, but... sheesh.

On the other hand, think of how the law of unintended consequences applies.  Build cars that are crash-safe (or which, like SUVs, are falsely portrayed as being safe), and people begin driving more recklessly, thus causing more crashes.

[happy]

Thanks OP for posting the link. I'm not a car nut nor am I very car handy. This link taught me a lot.

[tkaraszewski]

A debt-free car is not really all that difficult. I recently purchased this car:



For $1,800. You're probably looking at the picture and thinking, "hmm, that doesn't look so bad." (by the way, there's nothing wrong with the paint, the car's just wet from the rain.)

You're right! It doesn't! It's a 1997 Mazda Protege. It has nothing. No power windows, locks, etc. It has 169,000 miles on it, and it actually drives around just fine. It's not fancy, it's not fast, and the seats have stains on them, but it drives around pretty OK.

I bought the car to give to my in-laws, because they couldn't afford to keep driving over to visit in their ridiculous truck that gets 6 (6!) miles to the gallon. This car gets about 30. They are finally putting the stupid truck up for sale. With that gas mileage improvement the car will pay for itself in no time, even if it needs the occasional repair. At half of the purchase price of the edmunds car, they can afford to put $2000 into repairs before they even match the cost of their Lexus.

[Skyn_Flynt]

I had a 1992 Protege, was my first new car - drove it ten years. Wrecked it twice, put 253K miles on it and sold it running to somebody who probably got another year or two on it.

They're reliable cars with good quality parts in them.

[Forcus]

There's a TRUE debt free car I'm thinking of buying, an 02 Focus with 94k miles with a bunch of aftermarket parts, for $2800. The aftermarket parts EASILY outvalue the price of the car so once those are removed and sold, it is essentially free. Not for everyone, and of course you have to have stock parts to put on it (which are cheap or free).

[Forcus]

I took a look at the 100 MPG project, looks like a Lotus 11, which is essentially a full bodied Lotus 7. Both cool projects. I started building a Lotus 7 with a YZFR-1 sportbike engine before (150 HP, 800 lbs, sequential shifting) but had to moth ball it. Wouldn't want to be in an accident with one though.

[Skyn_Flynt]

Most people do not realize what long term goods automobles really are. You can gets parts for cars of nearly any vintage. Maybe you do end up waiting a few days for a specialty part to be air-mailed from a salvage yard, and that can be a hassle.

I suppose by 30 years of age, it becomes difficult to find mechanics that understand old electronics and features. But even then, if you live in a mid-size city, there are probably a few "classic car" garages around.

Here's a fun website I check out from time to time:

http://oldparkedcars.blogspot.com

[GoStumpy]

My favorites are Mk2 VW's... 1985-1992 VW Jetta/Golf are very VERY reliable, great on gas, and parts are so cheap they're damn near free.. and almost everything on the car can be done yourself... Just don't get an automatic ;)

[SwordGuy]

Got to be at least $1200 a month in car payments!   That's $48000 a year in car payments!   Which means that with 30% taxes it takes an income of $68571 a year just to make the car payments!

No it's not, $1200*12 months=$14,400 per year... still ridiculously expensive though.

Just more proof that I can't do public math in a hurry! :(

But it's not $14,400 a year.  That's $14,400 a year AFTER taxes.  You have to earn more than that to have $14,400 left over for those car payments.   Once you add the taxes in, it's got to be close to a third of the median family income.
 
I've never had house payments (principal, interest, taxes, insurance, pmi) that were that much a year.   Probably why my house, cars and credit cards are paid off...

[thurston howell iv]

Interesting article. Only issue I had with it was that these guys kept going to the dealer... I'm guessing it was for comparison purposes  (ie: dealer vs. local shop) but, I think what it also does is to scare away the folks who have never turned a wrench.  Nevertheless, it seems as if more than a few of those repairs could have easily been cheaper.

That being said, I am a huge fan of cheap old cars. They aren't terribly pretty but as long as they do the trick and are reliable, they're good with me.. I haven't had a car payment in almost 10 years! And all my cheap little cars have served us well... Currently driving a 97 Honda Civic HX- Just filled up this morning- 40.8mpg - with no effort on my part. Car has 212k and going strong. My Subaru has 155k with no problems.

Not really sure why folks are so afraid of the mystical 100k mark.

BTW, I do agree that there should probably be a special section in this forum dedicated to the automotive frugality/DIY, etc..

[BayIslandSaver]

Little tip to cut down on some of those repair costs is to get the Pep Boys rewards card:

http://www.pepboys.com/glovebox/marketingRewards

Free stuff: Tire rotation, air pressure check, flat repair, check engine light evaluation, brake check
Warning: They will likely try and sell you on something you don't need.

I had a flat and rolled my tire into the store (I removed the tire myself).  Signed up for the rewards program on the spot, but they said I could only use it on the next and subsequent visits.
So, I recommend signing up and keeping the card in your glove box for future emergencies.
Free to signup and took only a minute.

Also, these services are free so don't expect 5-diamond service, but works in a pinch.

[adam]

Funny about the heater valve leak on their Lexus.  I had a 93 Lexus ES300 (also in green, but with a 5sp manual, which was very rare).  It died because of that leak at 186k miles or so.  I didn't really have a 'slow' leak, whatever happened happened overnight and dumped all my coolant without my knowledge.  I noticed there was a problem when the car died at a stop light on the way to work and my temp gauge was pegged.  I limped to a parking lot, got a tow back to my apt, and ended up getting $1000 on trade for it (after spending damn near $800 on tires a few weeks prior) sight unseen and bought a brand new mustang (in 2004).  Thus begun a decade of bad car decisions by me.

Edit: and I can't believe they didn't get a AAA or similar membership.  I've had that for going on a decade+ now and only needed it twice, once for the lexus and once when I snapped the axle on my S2000.  I've spent slightly more in membership dues than what those tows may have cost, but the peace of mind and the discounts even it out for me.

[ShavenLlama]

Edit: and I can't believe they didn't get a AAA or similar membership.  I've had that for going on a decade+ now and only needed it twice, once for the lexus and once when I snapped the axle on my S2000.  I've spent slightly more in membership dues than what those tows may have cost, but the peace of mind and the discounts even it out for me.

AAA is awesome. It's not just the towing (and key lockouts, and battery service), which I have used sooo many times for myself and friends. We had to get an old motorcycle registered that as far as we knew never had been, and it took about 30-45 minutes at AAA. IMAGINE how much time we would have wasted at DMV! The smelly people! The horrible chairs! The employees!

Also free maps and campsite lists for other states, quick and painless passport photos... I've definitely gotten my money's worth here.

[GoStumpy]

Went to the auction yesterday, and all I could think about was MMM's blogpost about the most economical cars...

There was a 2003 Focus Wagon, perfect condition, only 87k KM's (50k miles), that I could have bought for ~$2000-$2500.

[Roundel]

Sorry to bring from the dead, but the idea of a low cost to own car is an interesting topic.

While people can criticize Edmunds for choosing a Lexus ES300 (which is based on the best Camry ever made) it's much more relevant to me as it's a car that someone used to having luxury items and perhaps a car payment on a fancy new luxury car could enjoy driving.

I'm selling my very nice, reliable, 2012 Volvo with a $490 payment for 50 more months because I'm a car guy and enjoy older cars.  Saving money is a goal but to me, older cars have more character and are more fun.

Hardly a devoted Mustachian, at this point I have three cars but going down to two cars from the Clinton era.  My daily driver is a 1996 Volvo 850R Estate with 175k with a few minor issues, but the platform is sound and with preventative care and an owner and mechanic who understands the car will reach 300k miles.  It only averages 20 MPG on premium but I enjoy it, it carries everything I need, and to me is stylish and a fun statement.  I never feel "poor" or like I'm missing out.  I like the image of driving a clean, maintained older Volvo.  $2300 purchase price with another $1900 in maintenance (bought it with a check engine light that ended up being a clogged cat. converter, buyer beware)

My new-to-me fun car is a 1999 BMW M3, back before the brand went crazy filling every niche with disregard to long-term usage.  I bought it as a project but a close friend is a technician.  I bought the car for $4300 cash, will have $2000 in parts and labor, and the car will be worth $8k+ all day if I need to sell it. 

I estimate that for the first year, repairs on both cars will average out to $300/month.  The Volvo is almost caught up so that's maybe $100/mo. while the BMW will be $200/mo.

A benefit to these cars is in NoVA our personal property tax is levied on cars, and gets very expensive with new cars.  I'm enjoying my $48/year 1996 Volvo vs. $350/year 2012 Volvo.

I have trouble keeping vehicles for a while, so avoiding depreciation is a must for me.  Having easy and inexpensive access to parts and labor makes it viable to buy an underpriced project with maintenance and mechanical needs but solid body and interior.