How Much to Save For a Starter Car?

[mekap04]

Hi everyone, I just got my drivers license and was wondering how much I should save for a reliable used car. I'm thinking $2500-$3500 but being my first car, I don't want to spend too much.

[ua_guy]

I think that's reasonable. The caveat with something in that price range is going to be its condition and planning for things that may need attention, or will blindside you. I'd save above and beyond just what the vehicle costs, maybe up to $2k more, and keep that set aside for maintenance and repairs.

What kind of vehicle are you looking for in that price range? That's also going to be a determining factor in what you should save and plan for.

[mekap04]

I think that's reasonable. The caveat with something in that price range is going to be its condition and planning for things that may need attention, or will blindside you. I'd save above and beyond just what the vehicle costs, maybe up to $2k more, and keep that set aside for maintenance and repairs.

What kind of vehicle are you looking for in that price range? That's also going to be a determining factor in what you should save and plan for.

Thanks for the advice. I'm thinking about getting one of the following cars: Honda Civic, Nissan (not sure which one to get), KIA RIO, Toyota Camry, or Mazda 3. I was told to get a foreign made car since they are more reliable.

[sherylgray]

$2.5k - $3.5k will be a good deal. But you must not compromise on condition and fuel efficiency. Foreign made car looks more tempting but sometimes they cause problem with accessories.

[ua_guy]

Insurance is also a big factor. Have you checked into what kind of insurance you need and want to carry? The make/model of the car can be a significant factor.

[gloria7819]

Like has been mentioned, you need to figure insurance. Shop for a good price! It varies from place to place and company to company. Also, try to get a feel for how the car has been cared for when you buy it. It'll help you figure what costs will be coming your way.

[mekap04]

I haven't thought about insurance. I plan to get comprehensive insurance when I get my car though. I thought I had to buy a car first before I get insurance estimates.

[JoeP]

My advice is to look at "common" (aka Boring) cars that are easy to find parts for and are easy to repair. These include makes/models such as Ford Taurus, Buick, Impala, Corolla, Altima, Civic, Accord. I'd focus on vehicles that are 5-8 years old, because there are plenty of used parts and they are not loaded with computers as much as newer models. A quick glance at my CL shows these going for $4k-$5k. Your location will also have an influence on condition (snow belt cars rust a lot).

Shop around for insurance. We combined auto and house and ended up saving about $1200 a year for even better coverage; our previous insurer was simply too expensive for what we were getting.

[bjl584]

One thing to add, is to have whatever car you decide on looked over by your mechanic. A car isn't such a good deal if it is costing you a fortune in repairs.

[ua_guy]

I haven't thought about insurance. I plan to get comprehensive insurance when I get my car though. I thought I had to buy a car first before I get insurance estimates.

Insurance quote websites and even agents can draw up quotes without the vehicle already being purchased. They may ask for the VIN (Vehicle Identification Number)-- just tell them you don't have it and are getting a quote, and to draw the quote based on the year, make, model of the vehicle instead.

Most states require that you carry liability insurance (insurance in case you cause harm or damage other people's property, with your vehicle).

Beyond that you can get a variety of different coverages including collision, comprehensive, un/underinsured liability and property damage, etc.

If you're young, and you're not part of a household (i.e. parent's) policy, be ready for a surprise regarding cost. Insurance is expensive. Depending on what coverages you carry, I'd expect $1,000/year, or more, as a young driver on your own policy.

[PSF]

I think the best bet in this circumstance is to set yourself a limit, look at the various types of cars under you limit, then research the cars to find out which, over time, is the most reliable of the bunch.

I did this for my last car (1991 Daihatsu Charade), which I bought a few years ago, it cost me $1600 and has given me zero problems. I actually love this car a lot and while I do have the money to replace it, I won't.

The resource that helped me the most was this site 'carsurvey.org' It has many reviews from owners all around the world, I suggest you look through it in detail.

To the mods: I have no affilation with the above website, its just a very good resource.

[mekap04]

Thanks everyone for all of this helpful advice. I have a lot of research and saving to do and hopefully I can find a good deal on a reliable car. Been looking on Craigslist and the cars people are selling in my area are all brands I don't want (big trucks, ford, impala, vans, jeeps, and cars that need tons of work done) even though they are within my price range. Might have to buy a car from a dealer.