If you were going to drop 5k on a car what would it be?

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If you were going to drop 5k on a car what would it be?

Ryan Dossey
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes

After reading Mr. Money Mustache for several days know that and The Richest Man in Babylon have got me thinking. If I could cut out my car payment I could save/invest a decent amount of money. 

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Jeremiah F.
Real Estate Investor · Salt Lake City, UT · Member since 2015 · 5 posts · 4 votes
11y

I guess I'm either ahead of the game or was left behind along time ago.  I had a car payment about 10 years ago, but then I started flipping houses and it changes the way I think about everything.

I got out of a car payment and this is what I did. Bought a $600 Chrysler cirrus 98 ran for 2 years just maintenance, it died, scraped for $150. Bought a 85 Toyota pickup for $500, sold to my ex employee for $400 last year. In between then bought 85 BMW 735I for $1060 and a 89 Ford f250 for $620. Ford is a great work truck and the BMW had 130k miles and a 2" thick folder for all past service record back to 85 when it left the lot (over $38k in preventative maintenance and upgrades over the years, New clutch and trans in last 10,000 miles) I am the second owner and justify this purchase because I like to tinker on cars and I could sell it tomorrow for $3,000 easy. Bought a 86 Audi 4000 for $350 let my brother drive it when he was in the country, and anyone else who needed to borrow it, gave it away to a friend who's son was learning to drive for 16th b day, still runs great. Bought a 01 Chrysler cirrus for $700, gave it to my girl friend she wrecked it, bought a 96 Buick century for $450 3 days ago, gave it to the same girl (my ex now).

I might not be turning heads at stop lights but I take enjoyment in knowing that I have only spent $3,800 to get around the last 10 years. But more importantly, with the Ford and BMW I still own, I could sell both this week and walk away with profit, and a big smile knowing that I got everywhere I needed to go for 10 years for free.

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  • Jake Recz
    Manville, NJ · Member since 2015 · 141 posts · 87 votes
    11y
    A hybrid or a diesel. Save even more money that way... I can do 800-950 miles on one tank of diesel for $50.
    0Reply
  • Chris Simmons
    Real Estate Agent · Owasso, OK · Member since 2014 · 517 posts · 400 votes
    11y

    If it was 5K worth of pennies you dropped on a car you would end up with a big dent and a mess of pennies.

    Seriously, since trucks in my area are never cheap, i would go with something fuel efficient and with a/c.  

    I drive a 2006 nissan titan that has been paid off for years and i used to look at new trucks and drool.  Now, I can buy rentals for less than a new truck and I can go to all the dealerships and car shows I want without fear of doing something stupid.  The only things I want and get excited about now are more rentals.  

    My truck has converted from a toy to a tool and it has many more years left in it before it will need replaced.

    3Reply
  • Becky Davis
    Raleigh, NC · Member since 2015 · 36 posts · 6 votes
    11y

    Hard question. Truck would be useful if you need to haul things but cost a lot extra in unnecessary gas money if you don't. I have a bmw 3 series I adore that's completely paid off. I love it...until I make a spontaneous purchase at Lowes or the restore, then I get creative with the sun roof :)
    Something you can fold the backseats down normally helps.

    1Reply
  • Sam Sendgraff
    Specialist · Tulsa, OK · Member since 2012 · 49 posts · 14 votes
    11y

    I would suggest a 2006-2008 4 cyl. honda civic with around 100k miles. Manual or automatic. I have had several of these cars and have never has any issues. Since you are wholesaler, I assume that you drive a lot. I have compared hybrids, CNGs, and diesels, and unless you are driving 35,000+ miles per year I think that the civic is the best all around vehicle for reliability and fuel efficiency. Also, I think you will have a difficult time finding a reliable hybrid, cng, or diesel for $5000. In my Civic I average 35 mpg on the highway at 75 mph. In addition Honda's hold their value extremely well and are very inexpensive to work on if/when they need it. You should be able to get at least 200k miles out of one these cars. Toyota Camrys are also a good choice but you have to be careful about which year model you buy. 

    Since, I have rentals and also flip, I have an old 2001 F-250 that I bought for $4000. I use it when I need to haul something but most of the time it just sits in the driveway (it gets 10-12 mpg).

    3Reply
  • JJ Buckner
    Investor · Jacksonville, FL · Member since 2014 · 48 posts · 24 votes
    11y

    @Ryan Dossey I drive a 1997 Cavalier I have had since college. I bought it for 2k with 130,000 miles and it blows cold ac. Best purchase I have ever made. They are reliable cars, very easy and inexpensive to work on yourself. Not having a car payment allows for so much more money to be available at the end of the month. I will never have a car payment again! Good luck on the search my friend.

    3Reply
  • Ryan Dossey
    OP
    Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
    11y

    Keep up the recommendations guys. I realistically can drop more than 5k but I'm looking at saving all I can. I'm a "car guy" so this won't be super fun but I'd rather build wealth now! I used to ride/work on motorcycles extensively so I may get into that again. A little cafe racer I can wrench on. 

    I had a 94 Honda Accord as my first car. Bought at 175k miles drove till 245k. I had issues with the plastic impeller shaft on the water pump. Went through 4 or 5 of them. But I have been looking at Civics.

    1Reply
  • Ryan Dossey
    OP
    Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
    11y

    @Becky Davis

    I have considered going the older 3 series route as well. They drive great if you can wrench on them or know someone the maintenance costs aren't that bad.

    0Reply
  • Daniel I.
    Investor · Los Angeles, CA · Member since 2014 · 180 posts · 72 votes
    11y

    I used to drive a 2000 Toyota Corolla. I think brand new it was $12k. No bells. No whistles. Got the job done and I drove cross country with it a couple of times. But great idea getting rid of a car payment and paying cash for a beater of sorts. Think practical -- something like the an older Honda or Toyota sedan is a pretty good choice in my opinion. 

    0Reply
  • Mary lou L.
    Investor · Wichita Falls, TX · Member since 2014 · 382 posts · 123 votes
    11y

    We just had a 2001 Honda Accord totaled in an accident. It was purchased in 2003 used with 40000 miles. It had 257000 on it when it was rear ended. Other insurance paid out almost 5000 on it. 

    We found a 2002 with 140000 for 4200. Great condition no accidents clean car!

    If the original car had not been totaled I'm sure it would have gone to 300000! 

    We kept up oil changes I don't care that they say to go longer we did ours every 3000 miles. Engine mounts two timing belt water pump, replaced radiator brakes tires when needed. 

    We had the V6 EX leather moonroof alloy wheels. Great car! 

    0Reply
  • Joshua D.
    Investor · Columbus, MT · Member since 2013 · 1k+ posts · 1k+ votes
    11y

    Wife has a 2001 Honda civic that we got about 5 years ago, we baught it for $2500 and have put almost 70,000 miles on it with almost Zero repairs the needed to be done. 

    It now has 165,000 miles on it and will likely last much longer but even now we are averaging under 5 cents a mile for the vehicle, that to me is a good car. 

    Reliable cars do NOT have to be expensive. 

    0Reply
  • Jeremiah F.
    Real Estate Investor · Salt Lake City, UT · Member since 2015 · 5 posts · 4 votes
    11y

    I guess I'm either ahead of the game or was left behind along time ago.  I had a car payment about 10 years ago, but then I started flipping houses and it changes the way I think about everything.

    I got out of a car payment and this is what I did. Bought a $600 Chrysler cirrus 98 ran for 2 years just maintenance, it died, scraped for $150. Bought a 85 Toyota pickup for $500, sold to my ex employee for $400 last year. In between then bought 85 BMW 735I for $1060 and a 89 Ford f250 for $620. Ford is a great work truck and the BMW had 130k miles and a 2" thick folder for all past service record back to 85 when it left the lot (over $38k in preventative maintenance and upgrades over the years, New clutch and trans in last 10,000 miles) I am the second owner and justify this purchase because I like to tinker on cars and I could sell it tomorrow for $3,000 easy. Bought a 86 Audi 4000 for $350 let my brother drive it when he was in the country, and anyone else who needed to borrow it, gave it away to a friend who's son was learning to drive for 16th b day, still runs great. Bought a 01 Chrysler cirrus for $700, gave it to my girl friend she wrecked it, bought a 96 Buick century for $450 3 days ago, gave it to the same girl (my ex now).

    I might not be turning heads at stop lights but I take enjoyment in knowing that I have only spent $3,800 to get around the last 10 years. But more importantly, with the Ford and BMW I still own, I could sell both this week and walk away with profit, and a big smile knowing that I got everywhere I needed to go for 10 years for free.

    4Reply
  • Clay Manship
    Indianapolis, IN · Member since 2013 · 549 posts · 310 votes
    11y

    I drive a 2001 Acura TL with a 171,000 miles. His name it Tito and we get along great.

    Like others, I often used to drool about the thought of driving around in my fun new BMW or Mercedes. Still an awesome thought--don't get me wrong--I can't wait for that day. I would just rather be retired by the age of 35 instead of worrying if my employer will be able to front me the money for my car payment at age 35.

    Every dime I don't spend on "fun" things goes right into my RE portfolio.

    1Reply
  • Alexander FelicePro Member
    Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
    11y

    I'm also a "car guy". 

    My last was a brand new mk6 GTI which I LOVED but I knew I loved money more so I sold it and bought a BEATER truck for $1500. 

    I've had the beater now for 4 years and while I miss having a new car, I will never get sick of putting that $600 a month into real estate rather than a car.

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    0Reply
  • Rob Golob
    Investor · Valparaiso, IN · Member since 2015 · 84 posts · 47 votes
    11y

    I'd by $5,000 worth of any GM car that has the 3.8L V6.

    Lesabre (favorite) Impala, Grand Prix, Etc.

    Good for 300K miles and great ride.

    2Reply
  • Derek Daun
    Investor · Sacramento, CA · Member since 2012 · 289 posts · 151 votes
    11y

    This isn't a hypothetical for me, although car selection is one topic I don't see eye to eye with MMM. Both of our cars land on his 'no no' list.

    1) 2000 Subaru Forester. <$4k.  MMM doesn't like subarus due to the low mpg (all wheel drive). This is our cargo car. I can easy throw 4x8 sheets on top. 28mpg, but it doesn't get driven much as my wife works from home. AWD helps for trips up to the mountinains. Bomber reliability assuming you replace the couple of things that need to be replaced with age.

    2)2004 VW golf diesel. This will be a little more than $5k, but I make up with that in fuel savings since I commute 20+20 miles every day. Resale value is also quite high do to demand for these cars. The diesel drive trains are also solid as a rock.

    If I didn't appreciate the higher ground clearnance of the Subaru, I would consider something like an older AWD mini van, as it would give more cargo space for house remodeling. 

    I can't help but walk though the parking lot at work and laugh at all those shiny 4 wheeled down payments just sitting there.

    3Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Ryan Dossey

      that's easy  a Ferrari... its 5k for a tune up...

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    3Reply
  • Michael R.
    Rental Property Investor · Woodbridge, VA · Member since 2014 · 249 posts · 81 votes
    11y

    Consider looking up the total cost of ownership to determine the total cost. I like the suggestions of used hondas.

    0Reply
  • Ryan Dossey
    OP
    Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
    11y

    @Jay Hinrichs Someday! Lol. While I prefer the aesthetics of Lamborghini I must admit Ferrari does an important thing much better. Hold value. If you look at 6-7 year old Ferrari (f430) for example they tend to appreciate a bit each year. Not anywhere near the level of Real Estate of course. I think it has to do with their low volume of production. 

    Lamborghini on the other hand seems to build as many as they can sell. 

    If you want performance of a Lamborghini at a much cheaper price you have to look at the Audi R8's. The 2016's should be on par with the Huracan. 

    0Reply
  • Jared Lichtin
    Contractor · Cleveland, OH · Member since 2014 · 317 posts · 181 votes
    11y

    I second all the posts about hondas.  They have very long lives and great gas mileage.  I drive a 2001 honda civic lx, bought it when I was 15, and it's the only car I have ever driven.  170,000 miles :)

    0Reply
  • Becky Davis
    Raleigh, NC · Member since 2015 · 36 posts · 6 votes
    11y

    @Ryan D. Definitely. I absolutely love driving mine but I can do minor projects myself and I have a phenomenal mechanic who specialized in beemers nearby. Mine is a 325xi '04 which is surprisingly easy to work on. Especially when I get some assistance. I changed the alternator with some help which was easier enough, but alone it would have been a huge headache.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Ryan Dossey

      or you can get an airplane and do 200 MPH with no risk of a ticket .. I was at the Ferrari dealer the other day just snooping.  175 to 350k... they also had Masteratis they are pretty cool for 75 to 95k...   Cars are just too expensive... Me I drive a hyndai.. I buy one new every 2 years so I never have to buy tires oil stop for maintenance just turn on the key put gas in drive 24 months and sell it back to the dealer.. I am sure its not the frugal approach but I would be way upset if my car ever broke down on me  LOL

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  • Ryan Dossey
    OP
    Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
    11y

    @Jay Hinrichs 

    Oh yeah they aren't cheap. I actually really like the Maserati cars as well. Ferrari built v8 and 1/2 the cost. I don't think I'd ever buy one an exotic new. Way too much money. I know a guy who "flips" exotics as a way to drive/own them. Basically buy low, drive for a year, and sell high. Love that we're talking Ferrari and you're saying the Hyundai isn't economical. I bought my 13 Toyota for the very reason of having some solid, reliable, and decent gas mileage. Just deciding if I'd rather pay it off or "go cheap". 

    My Grandpa had a plane when I was growing up and it was an absolute blast. He actually turned me on to Aerolights/Paramotors which is something I definitely want to try. 

    Right now I'm in the "live like others won't for a few years so you can live like others can't" phase.

    0Reply
  • Joseph Gozlan
    Real Estate Agent · Plano, TX · Member since 2015 · 734 posts · 511 votes
    11y

    I didn't see what you do in RE but if you do anything with real properties (I.e. Not a wholesaler or realtor) then a truck is really useful. 

    Yes, they take more gas but put that into the calculation of how many miles you do a month and see if the difference is worth it. 

    If you don't need a truck or drive lots of miles then any corolla,civic,Subaru will drive forever and with great gas mileage. 

    1Reply
  • Cal C.
    Investor · Peachtree Corners, GA · Member since 2014 · 1k+ posts · 1k+ votes
    11y

    If you can find one that cheap I suggest buying a Ridgeline.  Plenty of room upfront a decent, but less than normal sized bed and I love the trunk. 

    1Reply
  • Josh Foret
    Frisco, TX · Member since 2015 · 13 posts · 6 votes
    11y

    On a budget like that you just can't beat a Mazda Miata. Hell, on just about any budget a Miata can compete. If you haven't driven one, give it a shot. I've owned quite a few vehicles, including more high-end sport model BMWs, and there's just nothing like driving a Miata. 

    Extremely reliable (extremely), fuel efficient, and FUN. You won't feel like you've given up anything at all. 

    0Reply
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