I want a new car. An Audi. Or a BMW. I've got that New Car Itch.
I've never been a fan of my Ford Focus. I like the leather seats, it's true, and I know it's relatively safe, but the car just doesn't suit my style. It's no fun to drive. Acceleration is unresponsive. Every little piece of it rattles and squeaks. Sometimes the road noise is oppressive. The whole car just feels cheap.
It's not that I'm a Car Guy. I'm not. I'm the kind of guy who buys a practical new car and then drives it until it dies. But my dislike for the Focus is so strong that I've spent the past couple days researching new vehicles, trying to calculate whether I can afford to purchase one. And if I can afford it, ought I purchase a new vehicle or a used one? (There are pros and cons to each choice.)
And what kind of automobile should I buy? The Toyota ECHO is cheap — $12,000 new — and gets 38mpg while providing excellent customer satisfaction, yet it's small and not very safe and surely cheaply made. The Acura TL looks appealing with its agile handling and near-luxury status, yet could I really afford $35,000 for a car? That seems obscene!
What about the new Scions? They're the ugliest cars I've ever seen, yet they get fantastic gas mileage and offer decent customer satisfaction. Hondas are always good. And Toyotas. (I've always wanted a Toyota Camry V6 XLE.)
But I'm frugal, right? I don't need a new car — it's just a want.
Rather than incur another debt, I've made it a goal to pay off all my remaining debt, and then reward myself by purchasing whichever car I choose, without compromise. If I want an Audi A4, I'll buy one. If I want a BMW 330i, I'll buy one. Because it'll take me two or three years to meet this goal, and my Focus will then be nearly ten years old, it'll make more sense to retire it and get a new vehicle. (And I will probably have changed my mind by then, and be content just driving it until it dies.)
In the meantime, I've made some small upgrades to my current vehicle, making it more fun for me. I changed the fluids. I cleaned it, inside and out. I bought an FM transmitter so that I can listen to my iPod over the radio. I'll research what it would cost to have a moonroof installed. Maybe there are some other little things I can do to make the car more appealing.
I know I ought to save this money for other things, but if $100 can keep from succumbing to the New Car Itch, I consider it money well-spent.
I once knew a fellow who, when he got this itch, would rent a fancy car for the weekend. He'd drive it around town, trying to get the feel for what it was like. On Monday morning, he'd return the car. He was always satisfied to return to his little Ford.
[this originally appeared in slightly different form at my personal site]
I was going to reward myself with a BMW a few years ago and thank god I didn’t, though the working my way to the goal to get the reward was very rewarding!
There are some great posts about buying a car over at http://iwillteachyoutoberich.com, though I’m sure you’ve seen them. Also be sure to read this very long but very good article at Edmond’s, Confessions of a Car Salesman: http://www.edmunds.com/advice/buying/articles/42962/article.html
Keep up the good work. I’m really enjoying your site.
Oh wow – I didn’t notice that you had Confessions of a Car Salesman linked under “You may also be interested to read” as that doesn’t show up in my feed reader. Great minds think alike.
I just went through the same phase. I know this post is a little old, but I hope you get to read this comment.
I strongly advise you to avoid newer German cars. I was looking at A4s, 323is, etc, for all the obvious reasons. Found a real nice 323i, so I thought. Took it to my mechanic (who is awesome), and after looking it over, he asks, “Did you buy this car yet?” I reply in the negative, and he says “Good, don’t.” Then proceeds to draw up a laundry list of problems with the car, totalling $6000-$7000 in parts and labor, some of which can only be done by a BMW dealer.
He went on to say that the newer German cars are not built as well as they used to be. It seems that their reputation has kept their values high, but they are NOT worth it. Your classy BMW or Audi WILL be a money pit.
He said “Get something Japanese” and I immediately felt stupid for wanting a German car. I realized I was looking for a status symbol more than a good vehicle. I *still* wanted something classy, and I got a 2001 Maxima, immaculate w/80k miles, for $9900. Upscale V6 sedan, decent performance, still a pretty cool status symbol, too. And it’s a Nissan, which means it’ll run forever.
One last point. In “The Millionaire Next Door,” one of the best performing groups in terms of net worth was what they called something like “used car prone”. This class of person buys a car that is 3 to 5 years old, and drives it for many years. They spend a lot of time discussing this class because it is the statistically most likely to have a very high net worth compared to annual income.
I LOVE your blog and I’m learning tons on it. I can’t believe my first post here is to give you advice, but I feel strongly about it. Cars are one of the biggest wastes of money. Don’t get an ugly or boring car, sure, but DON’T get a money pit, and DON’T buy new.
But there’s something to be said for getting a car that’s insanely fun to drive when you’re a daily commuter.
I bought a BMW 325i in February of 2006. Best car I ever owned. Even after driving it for more than a year, I often think to myself “I love this car.”
I bought a BMW 325i in February of 2006. Best car I ever owned.
You’re killing me, James, you’re killing me. (Must ignore reader’s comments…)
I just bought a used 2003 bmw 325i, for around $16 w/ 38k mint condition and remaining warranty. Let me tell you it is the best money i have ever spent ever.. these cars are amazing smooth, quick, quiet, stick, leather, and enough power wow
I’m at this place now. I have a 10 yr old gas guzzling Suburban. We bought it with every intention of driving it into the ground. But with 3 young kids and 2 large dogs, this vehicle is…well….gross. Plus with gas prices as they are, it’s time for it to go! Trying to save as much as possible for the next one, which is at least a year out, but it’s tough! I want one NOW! LOL!
From Edmunds True Cost to Own –
Cost over 5 yrs:
2004
BMW 325i $46,535 / 62 cents per mile
Lexus ES330 $42,672 / 57 cents per mile
Honda Accord EX $33,606 / 45 cents per mile
I know most readers here might keep the car longer, but it’s interesting to run the numbers.
If you bought a 3 yr old Honda EX every five years vs. the BMW, and increased your retirement contribution by $12,929 each five year period ($215.48 per month) at a conservative 8% you’d have an additonal
$321,142.65 in 30 years.
And you’d save the planet about 91,304 lbs on CO2. And it’s built somewhat locally – Ohio.
Don’t buy the bimmer. I know 2 people who own bimmers and they are expensive to own.
My bro-in-law got a bimmer 325 I believe. But he says now he regrets buying it. Before he had an Accord, and he says now the bimmer costs so much just for maintenance. He has a cousin who works on bimmers and even with a discount, it costs a lot. He’s afraid of how much the major service will cost. So he drives an Acura TL instead.
My other friend has a new 3 series too. He was driving it a lot at first. Recently he told me he takes the caltrain instead to work. He’s only 15 to 20 minutes away from work.
Oh just to add, if you are looking for a fun car to drive, check out the new mazda3. It’s a top pick from Edmunds.com readers and editors too.
I bought a “previously cared for” 2003 BMW 330i from a used car dealership. Had to replace the brakepads, rotors, and tires, but that’s to be expected. Buying a Certified Pre-Owned bimmer from a proper BMW dealership will get you an extended warranty and free oil changes. Buying a new bimmer will get you 4-years of service ‘free’ (oil changes, etc etc).
The car is absolutely amazing. 32-33mpg highway (at 90mph). Silky smooth ~225bhp and ~215lb/ft of torque, 0-60 in around 6.5 seconds. Roomy and comfy on the inside, but rear legroom is a bit of a squeeze sometimes. Yes you’ll get ‘only’ 30mpg/highway if you keep the power on, but if you keep the car at 3500rpm, where the torque peaks, you’ll get crazyawesome mileage. I commute ~35 miles each way, Monday through Friday, so I put quite a few miles on it. Keep the oil changes regular and the car will last well over 150,000 miles. My rear tires (245/40ZR17s, ~$320 total) had to be replaced after a year, front tires are still good.
Previously I had a 1988 BMW 325iX with 158,000 miles on it. Was still running strong when someone decided to pull a U-turn in front of me, totalling the car.
ps the new 335i twin-turbo inline-6 gets 28mpg highway by EPA estimates. 300bhp and 300lb/ft of torque.
If you ever do considder a Toyota Echo, I do recommend them. Mine gets 55mpg and is structurally sound. Yes, the insides are plastic, but it’s an excellent car! And it runs forever! 175K miles and still working perfect!
I have a 97 Geo Metro. I bought it 10 years ago with 60K miles. I now have 180K miles. This is has been the best investment of my life!!!!!!!!!!!
I paid 1800.00 dollars for it. It’s a sissy blue color and no one else wanted it. (I have a very large penis so a being a sissy doesn’t bother me)
I got it for 1/4 of blue book.
I pay 220 dollars a year in insurance.
4 tires cost 120 dollars.
It has a carburetor and I can do tune ups, oil changes, brake pads etc myself.
It has two very classy bumper stickers.
One says my other ride is your Mom. And the other says, My other car is a Roth IRA.
But it’s dying. It has an exhaust manifold leak. So I am shopping around and disappointed in my options. I’m not sure I can ever get a car as inexpensive to operate a the one I have.