What to get for first car

[chadder]

I'm looking to get some advice on what I should get in terms of a first car when I get out of school. I guess there are three main options:

1. Finance a new car - I'm really leaning against this one since the value drops so fast

2. Purchase a used car that is a few years old - something Japanese for around the $10,000 - $15,000 range

3. Purchase an older used car (again someting Japanese) for $5000 or so, and drive that for a few years before picking up something better.

I'm sorta between options 2 and 3. I will probably have enough to buy a car for 10,000 or so, but I'm wary to put almost all of my cash into something that is only going to decrease in value with time.

What do you guys recommend for a first car? Just get something that'll do the trick for a few years, or spend a bit extra for a nicer one right away that I can keep for years?

[ji2o0k]

i would suggest option number 3.

Cars are expenses, not investments. So like you mentioned, if you purchase new, depreciation is crazy the first 4 years with a significant drop in value of your car.

I would lean towards option 2 but you mentioned that would be all your money. And that wouldn't be wise.

Go with an older Japanese car. Like a 1994-1998 Acura integra , Honda Accord or Honda Civic. You can pick one up in the $5000 range for sure.

Make sure you bring along a trusted mechanic to inspect the car. See if the seller has the records of maintenance done on the car. Ask if any accidents etc.

The 1994-1998 years are really good for Japanese cars. My friend's Acura Integra is still going strong. He gets it rust-proofed every year and the car is looking so good.

Best of luck in your search !

[KevC]

Anything fwd, <100hp, dirt cheap to insure and fix. It's your FIRST car, there's a high chance that you'd do something stupid and crash it. I said *CHANCE*, I'm not doubting your driving ability.

Mid nineties japanese cars are always good.

[Anessa]

Get a Japanese beater and try to get one that's non rusty as you want a few winters out of it. I'd suggest like a mid 90s Accord or Civic but Civics are much harder to find in pristine condition and due to the fact ricers or young men love them for modding, etc. Even the 90s Camry would be a good deal now...and sucha lovely shape.

[acck]

Agree with all the above. Generally speaking when u are out of school, you want a car. The main advantage of getting a older *** car is that it doesn't hurt when some slam their doors on your car. As well, after a few years you know what you want and make a better decision on a new car. My friend had the same situation, but he got a new car Suzuki Aerio. After having the car for a year he said he made the wrong decision and end up trading in for an Altima.

P.S. If you are getting a used car check
1) any maintence history
2) Waterpump + timing belt changed (it cost few hundred dollars to change)
3) If deal privately make sure have a mechanic check it out
4) Check if the car has been into a serious accident and rebuild.

[afong56]

i'd echo some of the sentiments above--why take on more serious debt now, while you are still young? i'd see what $5k-8k can buy you that is jdm, and relatively rust free. it'll be cheaper to insure (liability only) and you won't have the heartache that goes with worrying about every ding and dent. that being said, try and get a stick--at least it'll be more fun to drive than an automatic.
keep in mind that there used to be a rule of thumb that most major components start going at about the 5 year mark, so see if you can find a car that has already had some of the major replacements done.
i'm glad that i waited until i was older before buying a decent car--i can actually afford it, and can enjoy it.

[skev13]

Go with 3.

I own a 1993 Acura Integra GS.

Never had a Tune-up
375 000km and still going strong.

Very Reliable IMHO.

[blue_xii]

If I was in your situation I'd go for the most affordable car I could get. An echo is a really good option if you want a car that is good on gas, depreciation and affordable. If you want something fancier I'd go for a late 90s or 2000 civic or corolla. Honda and Toyota are your best bets for a reliable car if you but used. I like the echo cause you can get a relatively well equipped one that isn't too old for about 10k. The only thing that makes me nervous about the car is it's small and wouldn't do well in an accident. Plus, I don't remember if there are models with ABS. Good luck and if you need the money then keep it conservative and you won't regret it.

[JohnB]

Option #3.

If its your first car, get yourself something decent and nice, but dont spend all your cash on it. Maybe 5-8,000 plus or minus.

Save for a house or something at this stage. Or just put your money aside and get a nicer $$$ ride when you can better afford it when you have a solid job etc...

Civic, Integra, Accord, Celica, you can still get a nice reliable car in this range, then sell it in a few years and youd still get about 2,000 or whatever for it...

And Id imagine insurance is much more on a new 2007 so you save ever more money.

[chadder]

All good advice, thanks. My first thinking was paying $5000+ for something over ten years old is a little iffy, but then I guess if you look at the fact that you could drive it for a couple years and its value wouldn't have dropped nearly as much as if I had bought a $15,000 car makes sense. So the amount I'm paying each year to drive the car is less in addition to requiring less cash upfront. Insurance is also another big factor I didn't think as much about, so looks like I could end up saving a lot of money if I stick with an older one for a few years anyway.

[nx2k]

i always wondered, where guys have $15k for their first car in their teens or very early 20's
does everyone sell drugs now?
my first car was $2500

[chadder]

i always wondered, where guys have $15k for their first car in their teens or very early 20's
does everyone sell drugs now?
my first car was $2500

Well for me it mostly comes from co-op in university. As long as I control my spending, I can usually make enough on co-op terms to more than offset the cost of the following school term, so I can actually gradually make money through university rather than getting further into debt.

[heikesdad]

Go With an ECHO, we have one as a second car it's great on gas and the wife got rear ended a couple of years ago the civic that hit her had to be towed while the echo needed repair you could still open the back doors and trunk.

check autotrader.ca ($6400 for 2002 with 63,000km)

[Hula]

Option #3 for sure! Buy used and take advantage of someone else having paid for the depreciation value. $5-7 can even get you some excellent deals these days, but I'd avoid Honda as you're still paying for the name plate. I'd get an older Mazda protege or Nissan Altima! (98-2001) Just my two cents.

[faizalm]

Option #3 for sure! Buy used and take advantage of someone else having paid for the depreciation value. $5-7 can even get you some excellent deals these days, but I'd avoid Honda as you're still paying for the name plate. I'd get an older Mazda protege or Nissan Altima! (98-2001) Just my two cents.

do u mean to say that we pay xtra for the name "honda"?
i am not understanding it...