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What kind of car should I buy?

3,533 Views | 31 Replies | Last: 5 yr ago by suburban cowboy
mrmill3218
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I'm 29 and I need a new (for me) car. I intend on buying a used one.

I work in construction, have a wife, and we're saving up for a house.

I'm really torn on what to get. The responsible half of me wants to pay cash for a used Camry. The other half of me wants to pay the same amount of money or a little more for something "cooler", that will have more miles on it and require more maintenance unfortunately.

Like I said, I work in construction and know that there may be a downturn coming up after how well it's been doing in Dallas for the last few years.

Should I buy the Camry and not have to worry about maintenance, and so that I can continue to save a lot for a house? Or should I buy what I really actually want?

Note - I'll be paying cash either way. I never want to go into debt for a car.
Martin Q. Blank
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How did this inner monologue end up on texags?
62strat
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Buy a 4 year old truck. Come on man, you're in construction, do you want to roll up on site in a camry, banging up the undercarriage and then getting stuck in mud?
permabull
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deadbq03
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I normally think that people are wasting their money when they buy a truck they might only truly need a handful of times a year...

But if you're in construction, you ought to have a truck... but I'd go even older than 4 years.
jwoodmd
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Buy a Prius - then the people at the construction sites will take you as seriously as the people on this board are with your question.
62strat
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deadbq03 said:

I normally think that people are wasting their money when they buy a truck they might only truly need a handful of times a year...

But if you're in construction, you ought to have a truck... but I'd go even older than 4 years.
yeh 4-6; I wouldn't go much older than that if he's (seemingly) worried about maintenance. A 5 year old low mileage Lariat is what, mid/high $20s? XLT would be low $20s.

That's pretty affordable, assuming he can throw a $5k dp at it.
mrmill3218
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62strat said:

Buy a 4 year old truck. Come on man, you're in construction, do you want to roll up on site in a camry, banging up the undercarriage and then getting stuck in mud?

Well I'm actually an estimator so I don't really ever go out on site.
mrmill3218
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hypeiv said:

Why do you need a new (for you) car? (i.e. what is wrong with your current car)

My transmission has been slipping a lot for about a year. It also needs several thousands of dollars in just maintenance items. It still runs, just not very well. Also has a lot of body damage. I can't comfortably drive out of town with it.
62strat
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mrmill3218 said:

62strat said:

Buy a 4 year old truck. Come on man, you're in construction, do you want to roll up on site in a camry, banging up the undercarriage and then getting stuck in mud?

Well I'm actually an estimator so I don't really ever go out on site.
I'm an estimator in construction, and I go on site. Do your job better!

To tie this coincidence even closer; when I first got this job, I didn't have a vehicle (was laid of from O&G construction which provided a company truck). So I had borrowed an vehicle my inlaws had and didn't use for a few months while looking for a job (didn't want to buy a vehicle not knowing if I'd get a company vehicle again).

I then got this job, and still drove my inlaws vehicle until I bought a truck about a month in. The vehicle I was driving??



A Toyota Camry hah.
mrmill3218
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62strat said:

mrmill3218 said:

62strat said:

Buy a 4 year old truck. Come on man, you're in construction, do you want to roll up on site in a camry, banging up the undercarriage and then getting stuck in mud?

Well I'm actually an estimator so I don't really ever go out on site.
I'm an estimator in construction, and I go on site. Do your job better!

To tie this coincidence even closer; when I first got this job, I didn't have a vehicle (was laid of from O&G construction which provided a company truck). So I had borrowed an vehicle my inlaws had and didn't use for a few months while looking for a job (didn't want to buy a vehicle not knowing if I'd get a company vehicle again).

I then got this job, and still drove my inlaws vehicle until I bought a truck about a month in. The vehicle I was driving??



A Toyota Camry hah.

Lol very nice!

When I go out on site it's usually just an empty field!
62strat
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mrmill3218 said:

62strat said:

mrmill3218 said:

62strat said:

Buy a 4 year old truck. Come on man, you're in construction, do you want to roll up on site in a camry, banging up the undercarriage and then getting stuck in mud?

Well I'm actually an estimator so I don't really ever go out on site.
I'm an estimator in construction, and I go on site. Do your job better!

To tie this coincidence even closer; when I first got this job, I didn't have a vehicle (was laid of from O&G construction which provided a company truck). So I had borrowed an vehicle my inlaws had and didn't use for a few months while looking for a job (didn't want to buy a vehicle not knowing if I'd get a company vehicle again).

I then got this job, and still drove my inlaws vehicle until I bought a truck about a month in. The vehicle I was driving??



A Toyota Camry hah.

Lol very nice!

When I go out on site it's usually just an empty field!
That's exactly what it's like when I go on site. There are also usually no curb cuts, and it's rough, ungraded dirt with semi-tall grasses. You want to hop a curb and drive through that in a Camry?



themissinglink
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It's hard to say without knowing your personal financial situation.

You made a few other post on this board about how much to put down when buying a house and what to do with your savings.

This next piece of advice is terrible for 99% of Americans, but because this is the B&I board and people on this board are generally more financially literate and responsible (at least I hope), I'll post it...

It's great that you are dead set on paying cash but that might not actually be the best thing for you, especially if you are evaluating your option how much to put down for a home downpayment. I'm not sure what the prime interest rate for auto loans are these days, so you'd have to run the numbers to evaluate what makes more sense for you.
mrmill3218
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themissinglink said:

It's hard to say without knowing your personal financial situation.

You made a few other post on this board about how much to put down when buying a house and what to do with your savings.

This next piece of advice is terrible for 99% of Americans, but because this is the B&I board and people on this board are generally more financially literate and responsible (at least I hope), I'll post it...

It's great that you are dead set on paying cash but that might not actually be the best thing for you, especially if you are evaluating your option how much to put down for a home downpayment. I'm not sure what the prime interest rate for auto loans are these days, so you'd have to run the numbers to evaluate what makes more sense for you.

I guess my thought is why make payments with interest every month when you could just pay cash and be done with it and not pay interest.

Regarding my financial situation - I have no debt and I've saved up a little over half of my down payment for a house.
CD12Ag
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You may have already considered this, but with no debt, taking out a loan on a car might improve your credit score. Thus, the interest you pay on the car note could ultimately pay for itself by improving your credit and reducing the interest rate on your mortgage.

I'm not a financial advisor and do not fully understand how credit scores are calculated, but this could be something to look into.
ac04
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my advice is to relax and live a little. not every single decision you make has to be filtered through the lens of optimized personal finance. buy and drive something you like.
62strat
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mrmill3218 said:

themissinglink said:

It's hard to say without knowing your personal financial situation.

You made a few other post on this board about how much to put down when buying a house and what to do with your savings.

This next piece of advice is terrible for 99% of Americans, but because this is the B&I board and people on this board are generally more financially literate and responsible (at least I hope), I'll post it...

It's great that you are dead set on paying cash but that might not actually be the best thing for you, especially if you are evaluating your option how much to put down for a home downpayment. I'm not sure what the prime interest rate for auto loans are these days, so you'd have to run the numbers to evaluate what makes more sense for you.

I guess my thought is why make payments with interest every month when you could just pay cash and be done with it and not pay interest.

Regarding my financial situation - I have no debt and I've saved up a little over half of my down payment for a house.
My vehicle is like 1.9%. A lump of $27k (my initial loan amount) could easily make back the $1300 in interest I'll pay in 5 years for this loan.
NoHo Hank
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mrmill3218 said:

themissinglink said:

It's hard to say without knowing your personal financial situation.

You made a few other post on this board about how much to put down when buying a house and what to do with your savings.

This next piece of advice is terrible for 99% of Americans, but because this is the B&I board and people on this board are generally more financially literate and responsible (at least I hope), I'll post it...

It's great that you are dead set on paying cash but that might not actually be the best thing for you, especially if you are evaluating your option how much to put down for a home downpayment. I'm not sure what the prime interest rate for auto loans are these days, so you'd have to run the numbers to evaluate what makes more sense for you.

I guess my thought is why make payments with interest every month when you could just pay cash and be done with it and not pay interest.

Regarding my financial situation - I have no debt and I've saved up a little over half of my down payment for a house.
Basically, because money spent going into the market at a conservative ROR of 5% is going to be better than the associated opportunity cost of 2% debt. You gotta invest the money for that to be true though, and a lot of people don't have the discipline to do that.
94chem
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Your budget?
themissinglink
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mrmill3218 said:

themissinglink said:

It's hard to say without knowing your personal financial situation.

You made a few other post on this board about how much to put down when buying a house and what to do with your savings.

This next piece of advice is terrible for 99% of Americans, but because this is the B&I board and people on this board are generally more financially literate and responsible (at least I hope), I'll post it...

It's great that you are dead set on paying cash but that might not actually be the best thing for you, especially if you are evaluating your option how much to put down for a home downpayment. I'm not sure what the prime interest rate for auto loans are these days, so you'd have to run the numbers to evaluate what makes more sense for you.

I guess my thought is why make payments with interest every month when you could just pay cash and be done with it and not pay interest.

Regarding my financial situation - I have no debt and I've saved up a little over half of my down payment for a house.
I guess the point is, you are saying you have saved up half your home downpayment, but then you say are looking to pay (presumably) $10-20k cash for a used car. If you took the cash you were going to spend on the car and applied it to your downpayment, would it help you meet your financial objectives sooner?

Taking out a car note will lower the maximum mortgage a lender will give you, but if you are being financially responsible, you are under that number already.

Again, bad advice for someone lives from paycheck to paycheck, but if (big if) you and your wife have a good budget and financial plan, you should at least look into financing and using that cash for your downpayment.

As others have said, you could take out a car loan and invest the money you were going to buy a car with. Assuming the interest rate on auto loans are sub-4.0%, you are probably better off investing the money, but I wouldn't recommend it unless you know what you are doing and have a long-term investment horizon.
mrmill3218
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I appreciate all the replies!
BBDP
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I would spend some money on your current car if you can make it dependable as my 1st choice.... or I would buy the Camry.....

Cars are the biggest drain on wealth, I hate them.
one MEEN Ag
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BBDP said:

I would spend some money on your current car if you can make it dependable as my 1st choice.... or I would buy the Camry.....

Cars are the biggest drain on wealth, I hate them.

You planning on living somewhere that A) has incredible public transportation and B) doesn't tax the hell out of you to maintain that public transit?

There's always a cost associated with being able to move from place to place whether you pay for it in maintaining a vehicle or paying the fees/taxes associated with public transit. How much you pay depends entirely on your lifestyle.

Ragoo
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Buy truck A
Decide not to put a bunch of miles on truck A
Buy truck B and drive the **** out of it
Sell truck A because you didn't ever drive it out of fear you might not sell it for as much as if you had driven it.
khkman22
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Ragoo said:

Buy truck A
Decide not to put a bunch of miles on truck A
Buy truck B and drive the **** out of it
Sell truck A because you didn't ever drive it out of fear you might not sell it for as much as if you had driven it.
Now we're talking.
agnerd
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If this were the automotive board, I'd suggest a 3-series bwm.

But since this is B&I, I'm going to suggest either a new Honda or Toyota midsize SUV, or a used Mazda/Chevy/Ford midsize SUV. Hondas and Toyotas don't depreciate, so buy them new. Domestics are where you achieve better value when buying used since they do depreciate.

Since you're in Dallas, the biggest threat to your financial future isn't gas prices, or financing cost, or a down payment on your house. Biggest threat is you and/or your family getting t-boned in an intersection by a driver with inadequate or no insurance. The average front bumper height of the car t-boning you is coming into your heart, lungs, neck and vital organs if you're in a car. In an SUV, that bumper and engine block are coming into your pelvis and reducing the cost and severity of your injuries. Could be the difference between a $5000 trip to the emergency room and a $100,000 trip to the ER plus years of rehab and possibly not being able to work anymore. On the roads, weight and height of your vehicle are the most important safety factors. I consider the couple extra dollars of gas I have to buy as my premium on a de facto insurance policy. Just something to consider...
The Lost
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one MEEN Ag said:

BBDP said:

I would spend some money on your current car if you can make it dependable as my 1st choice.... or I would buy the Camry.....

Cars are the biggest drain on wealth, I hate them.

You planning on living somewhere that A) has incredible public transportation and B) doesn't tax the hell out of you to maintain that public transit?

There's always a cost associated with being able to move from place to place whether you pay for it in maintaining a vehicle or paying the fees/taxes associated with public transit. How much you pay depends entirely on your lifestyle.
Sure they aren't great from a wealth side, but you do have to go, and pending your lifestyle they can help with happiness.

I love my truck in colorado, between camping and ski season its great. Sure i don't maximize its value completely during the week, but life isn't perfect. I'd way rather have my truck than save 10-20k driving something that gets me from a to b.

It's one thing to buy 100k benz compared to a 30k truck. You can get a reasonable vehicle without it being a waste. The waste is when you buy a king ranch just cuz, when an stx is all you need.
agdreaming
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agnerd said:

If this were the automotive board, I'd suggest a 3-series bwm.

But since this is B&I, I'm going to suggest either a new Honda or Toyota midsize SUV, or a used Mazda/Chevy/Ford midsize SUV. Hondas and Toyotas don't depreciate, so buy them new. Domestics are where you achieve better value when buying used since they do depreciate.

Since you're in Dallas, the biggest threat to your financial future isn't gas prices, or financing cost, or a down payment on your house. Biggest threat is you and/or your family getting t-boned in an intersection by a driver with inadequate or no insurance. The average front bumper height of the car t-boning you is coming into your heart, lungs, neck and vital organs if you're in a car. In an SUV, that bumper and engine block are coming into your pelvis and reducing the cost and severity of your injuries. Could be the difference between a $5000 trip to the emergency room and a $100,000 trip to the ER plus years of rehab and possibly not being able to work anymore. On the roads, weight and height of your vehicle are the most important safety factors. I consider the couple extra dollars of gas I have to buy as my premium on a de facto insurance policy. Just something to consider...
Calling @agnerd

I really like this approach to car selection, is there some way to email you to ask you a follow up question?

Thank you @agnerd
GTIAG09
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I didn't see a budget referenced, but to me the sweet spot in the F-150 lineup is the STX trim. You could probably get a new 2018 from the upper 20s to low 30s. Getting one in the upper 20s may mean it was a loaner...
JSKolache
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07-10ish tundra
Engine10
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Bought a standard issue XLT F-150 Crew 4 years ago, paid it off early. Look forward - having a truck bed available as a homeowner is incredible depending on what kind of work you wanna do. Moved pallets of grass, dirt, furniture you name it - cab is big enough to just have my two dogs hop in with the seats folded up, and the backseat easily loads 3 car seats. Fuel efficiency is not everything - other efficiencies to consider.

Just get a truck my dude. You won't regret it.
one MEEN Ag
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Engine10 said:

Bought a standard issue XLT F-150 Crew 4 years ago, paid it off early. Look forward - having a truck bed available as a homeowner is incredible depending on what kind of work you wanna do. Moved pallets of grass, dirt, furniture you name it - cab is big enough to just have my two dogs hop in with the seats folded up, and the backseat easily loads 3 car seats. Fuel efficiency is not everything - other efficiencies to consider.

Just get a truck my dude. You won't regret it.
Everyone who doesn't own a truck is always asking friends with trucks to help them do everything you said.

After college, my price to help move went up from beer and pizza. Now people don't ask me to help move.
suburban cowboy
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In a similar situation and I just went through this.

I agree with the poster above that not every move you make has to be centered around personal finance.

Life is short. Get what you want within reason and enjoy the hell out of it.
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