Shaking the new car itch: A tale of priorities
When I went to the street to get the mail on Saturday, the latest issue of The New Yorker was in the box. Walking up the sidewalk to the house, I idly began to remove the subscription cards. I stopped, though, when I came to a full-page cardstock advertisement. I read the front of the ad. I read the back.
At the kitchen table, I carefully removed the ad from the magazine, carried it upstairs, and sat down at my computer. I typed in the listed URL, and for the next two hours, I was at the mercy of the advertiser. What was this ad for? The 2007 MINI Cooper.
I’ve mentioned before that I hate my current vehicle — a 2000 Ford Focus. I bought it in a hurry after my 1992 Geo Storm was totaled by a wayward tractor-trailer rig. I’ve loathed the Focus since day one.
Three years ago, as I began my debt-reduction crusade, Kris and I made a pact. As soon as I had paid off all my debt, I could buy any car that I wanted. I never dreamed that day would come so soon, but it has. I’ll be debt-free by Christmas (except for the mortgage), which means I’ll have some tough choices to make.
During our recent trip to London, I fell in love with the MINI. It seemed to be everywhere, and I was enamored with its compact style. I began to believe I had to own one. But I’m not in the same place I was three years ago. I have a different perspective on money. Do I really want to eliminate my debt only to immediately purchase a new car? That doesn’t sound smart.
On the other hand, I drive a lot, and the Focus is like an anchor around my neck. Also, I do feel that it’s appropriate to reward myself for achieving a goal. Kris and I had a long chat yesterday. We both think I’ve licked the debt monster and have shown I can work to pay things down. I have the go-ahead to buy the car.
Of course, in order for this to happen, I actually have to be willing to spend the money. I could probably pay off a new car in just a couple years, but I’m not sure that’s something I’m willing to do. This frugal living stuff has become a habit. And although I hate my car, it seems foolish to get rid of it after only seven years.
Last night I sat down to work out the numbers. It’s clear that buying a car would impede my larger goals.
One of my goals is to drive less, for example. I want to reach a point where it doesn’t matter what sort of car I have. I want to work from home, writing. I want to walk to the grocery store. I want to ride my bike to reach more distant destinations (like the comic book shop). How does buying a car help me achieve these goals? It doesn’t.
Not buying a car lets me reach these goals more quickly. By not buying a MINI Cooper, I’m roughly $25,000 closer to paying off my mortgage. By not buying a MINI Cooper, I have more to set aside for retirement. If my dream life is to stay at home and make my living as a writer, then I need to do things that will make this a reality. Buying a MINI Cooper is counter to my objectives.
Someday I really will buy a car that I want. That day has not yet arrived, however. Maybe I’ll do it when the Focus dies. Maybe I’ll do it when I turn 45. Or 50. Maybe a wealthy aunt will buy me a MINI Cooper — I certainly wouldn’t turn it down. If only I had a wealthy aunt…
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There are 100 comments to "Shaking the new car itch: A tale of priorities".
What’s wrong with buying a used mini cooper?
Used MINIs are still pretty expensive! I left that part of the story out. I did go look at a used one, and it would have cost me $18,000. Apparently they hold their resale value very well…
i am now just reading this old post (2013) maybe you are driving your mini now or still driving your ford. But a nice compromise is to buy a 5-6 year old mini cooper. Being frugal is OK but you should not deprive yourself of nice things that you CAN afford. Inspiring article regardless.
Stick to the goal my man. There was something that always nagged me after I bought new cars. It took me a while, but I figured out what it was – it was the 5 years of “I don’t really own this car, the bank does”. Next new car I buy will come after my other goals are met and then I have enough saved up to pay cash. Then I will be truly able to enjoy my car from day 1.
Wow. Way to be aware! You’ve developed some good habits.
Perhaps, when the Focus dies or starts dying, you can buy a 2 or 3-year-old MINI and feel quite justified about it.
I would second Alias in this case. It’s a shame to put all that hard work in and then go right back into debt. Surely there is some other type of car that is more practical in the fiscal sense that would also be more enjoyable than the Focus.
On a side note why do you hate the Focus? Is it a matter of status/style or function? Or both?
It’s funny that I bumped into this article. I currently have two years to pay on my car loan and already I’m looking ahead to the next car. When my family went on vacation last month, we rented a brand new Ford “Edge” and I fell in love with it. Ever since I’ve been telling folks that it’s gonna be my next car, lol. This isn’t really meant as a site plug (well maybe it is) but there is a pic of it in my website, way at the bottom of the page.
I feel your pain. I started from the other side of the argument about a year ago, when I decided to sell my 2005 Mini Cooper S and start down the road toward zero debt. I don’t regret selling it, but I do miss that fun ride now and again.
Maybe you could try saving up the $25,000 and see if you still want to drop that cash for a car 🙂 That would really test your desire.
You deserve to buy a new car. But, it sounds as if you have some reservations. Here’s what my hubby and I have planned. We own two cars, a 98 Dodge Minivan (necessary because of child quantity) and a 91 Volvo station wagon, which we hope can make it until the debt is gone. Both are paid for. When the debt is paid off in a couple of years, we plan to sink the money we were paying toward the debt into a high-yield savings account or for 3-6 months. That will give us extra time to decide 1) exactly what we want to replace the Volvo with and 2) How much we really want to spend. By waiting an extra 3-6 months we will accomplish two things: thinking time and a down payment(which might lower the financing period if we need one). Depending on what type of car we decide on, we may even be able to pay cash for it. Good luck with your decision.
The Focus is likely not immortal, based on anecdotal evidence of Ford’s lack of interest in quality.
Start watching the new AND used car market for Minis and become an expert. Then, when the Focus gives it up, you’ll be ready to pounce.
I’m in the same boat with my Saturn. I’m planning to keep the junker until it dies (which I help along its way each time I drive it by goosing it whenever I hear the familiar rattle of the rattrap engine).
Once you can buy the new car outright, go for it. I’m glad you’ll be debt-free by Christmas, congrats!
Wow-you are so close to paying off your mortgage! That’s amazing.
I too have to ask, what’s so bad about the Ford Focus? There are lots of people in the world that would love to own ANY car that runs. I only know you from your posts but your hate of the Focus almost seems out of character for you…
I used to drive a used Toyota Corolla-also later destroyed by a wayward tractor-trailer rig. When I was driving it, I imagined that it was a cool sports car-that helped. Now I have a Suzuki Forenza and I haven’t been able to fool myself into thinking its cool yet but it runs good and it looks acceptable. I’m not what I drive.
Now you know what true wealth feels like: you CAN buy something, but you don’t WANT to. You are starting to break the chain of consumption in our culture that put you in debt in the first place.
The first couple times it happens, it feels really weird and confusing. For me, it was when I promised myself I could spend $1000 on new clothing after a big tax refund. I walked around my favorite store, befuddled that nothing appealed to me enough to buy it. And this was NEW FALL CLOTHING, people!
Eventually, you’ll be able to just walk through stores and look at advertisements with detachment and be entertained but not compelled to purchase.
Remember when you were a kid and couldn’t walk through the candy aisle without pining for all that forbidden sugar? At some point your adult tastes no longer wanted it in excess. You may have even made yourself sick on candy before realizing that having it all was no fun (I know I did!) You are now moving into a more mature relationship with consumer goods; the debt made you a little sick, didn’t it?
The big secret is that when you truly break the debt habit, you will not feel like you’ve denied yourself at all when you bypass new stuff. You’ll feel fulfilled with what you already have. “Better to want what you have than have what you want.”
You just need a cold shower, man. With the kind of simple, debt-free lifestyle you are after, the best thing would be to just drive that Ford into the ground, then go buy a junker for cash. After you become filthy rich, i.e., once you’ve built GRS into a personal finance empire (books, seminars, employees, GRS The Movie, etc.), then go get whatever you want.
I don’t know, I’ve always been a function over form kinda person. Do you really want to drop that much money on a mini-cooper? I agree with your post, I’d wait and see how you feel once the Taurus is toast…hopefully NOT by a wayward tractor-trailer
Even those of us who have developed a thick skin w.r.t. advertising sometimes find something that we really, really want.
Hey, JD, why not explicitly start saving for your next car? Something like $100/month might slow down your debt-free date incrementally, but if I remember correctly, your debt-free date used to be spring and now it’s Christmas.
We love our car (a 95 Corolla, which we bought used for cash) and hope it lasts forever. But the kids are getting a little crowded in the back and know that in the next few years we’re going to need a more spacious ride. So we’ve started saving for the next car, to the tune of $50 or 100 a month. When the time comes we’ll have a decent nest egg to put toward the cost, even if it doesn’t cover the full price outright.
Incidentally, this is one of the things I love about banking online. We set up a separate sub-account specifically for car savings–and others for property taxes and insurance on our house, and for the kids’ college funds, and for the trip to Alaska we’re planning to celebrate our 10th anniversary next summer!
@ Angie
Where do you bank that lets you set up subaccounts? Mr. Micah and I are interested in that, but we’re still getting our bank accounts in order.
Gross. The Mini’s exterior is gorgeous but what about the sea of PlaySkool-look-alike plastic on the inside?
Major toss up for me. I went with a VW GTI instead.
ING lets you set up sub-accounts. It’s really all the same account but you can manage your auto-deposits separately and it lists the balances separately.
I’m sure some of the other online banks do as well.
I can relate. Starting 6 years ago when I got out of college I told myself “new Corvette. Someday”. I’ve always been frugal, but have taken it up a couple notches since then. I’ve realized I hate work, and the ultimate dream is to stop doing it. Now I have myself about talked out of buying any vehicle over a couple grand.
– It’s a depreciating asset that, while making the dealership rich, won’t do the same for you. Figure out what you truly want/need out of a car and don’t pay for anything else.
– I drive 5k miles a year, if that. Break down $45k+gas+maintenance per mile. Ack.
– Opportunity cost. Duh.
So now while I could “afford” a Vette (definitely if you listen to most in this country), I have no desire to buy one. Heck, at times I consider selling my 2000 Ranger to get something “a little less expensive”. Currently I’m driving my mom’s 93 LeBaron to get better gas mileage. And guess what, my life is not void of meaning or thrill.
I was going to suggest the used route that’s already been addressed and somewhat rebuffed. But buying late-model used (and then driving into the ground) is a good compromise for someone who would otherwise buy new.
We bank at a local credit union. I’d imagine that feature is pretty standard for internet banking, but I don’t really know from experience.
I’m also curious about why you don’t like the Focus?
I’ve had one for five years and, aside from the small car general complaints, my experience with it has been very good.
And for all the “anecdotal” evidence of Ford’s lack of quality, I think much of it is perception. For example, Ford’s Fusion has won raves and is beating out many in test results.
Paying cash for a car makes the most sense, if you can. That’s my plan. My Focus is five years old. I’m hoping to get another 3-5 out of it and am saving accordingly.
JD – Let me get this straight — you’re paying $200/mo for a dedicated server without raid1? If you want to, email me, and I’ll help you with any server issues that come up… gratis.
Thanks Angie & Sakoro!
Careful! That Mini may have unintended costs. A coworker bought one that spent many, many days in the shop. Though he loved it still. It seems all the other days were spent at the autocross — another cost.
What are you looking for in a car? Fun, sporty, attention getting. Does Honda make one?
Also, I’d say $25k is on the low-end. A carefully optioned one is more like $26k. A well optioned is $28k.
Good luck!
Why I Hate My Focus, by J.D. Roth
I hate my Focus because it gets mediocre gas mileage (~26mpg). I hate my Focus because the seats are uncomfotable. I hate my Focus because the brakes squeal.
I hate my Focus because the ignition is jammed. I’ve had it replaced once, but it’s still a problem. In order to get the key in or out, I have to park the car in reverse. And set the parking brake. If I forget and put the car in park before taking the key out, it’s a nightmare getting the key into the ignition. This is a prominent problem with Ford Focii, but Ford has not issued a recall.
I hate my Focus because it has not guts. I’m not a speed demon, but I do like a car with pep. The Focus has no pep. I hate my Focus because the molding has been falling off for years. I hate my Focus because it drives like a banana slug. I hate my Focus because the back doors only open a third of the way. (Is this some sort of safety feature? It’s annoying!)
I’ve only owned three cars in my life. I had a 1982 Datsun 310gx until it died in 1991. I loved that car. It was peppy and withstood all sorts of teenaged abuse. My second car was a 1992 Geo Storm. Laugh if you must, but it too was a great car. It also had pep, and it never had any major problems. Both of these previous cars got great gas mileage (up to 35mpg on a good tank), both were fun to drive, and both were reliable. (The Storm was very uncomfortable to drive over long distances, however.)
The Focus is a marked contrast to these previous two cars. I do not like it.
My goodness, it would be a tragedy to get into car debt. I don’t even understand the agreement you had with Kris…if you got out of consumer debt, your reward would be to go right back into it??? That’s sad and backwards. I’m glad you’ve learned this during your time of getting out of debt.
A dream car is one that’s purchased with CASH. And it can be used. And, as you have found, the “dream” can be reevaluated to include a paid off old car that you already own!
I know exactly how you feel. I drive a 15 year old Acura Integra, yet hubs and I have “this close” to having 7 digits on our balance sheet.
I am in the process of saving for a new car and want to save $20k. I have $2k now but would have $10k if we had not gone on two very awesome vacations this year.
Now am buckling down and figure I will be there in 2 years.
You can do it!!!! 26mpg is not bad, yes you hate your car but do you hate it to the tune of putting yourself $20k or more in debt again?
K wrote: I don’t even understand the agreement you had with Kris…if you got out of consumer debt, your reward would be to go right back into it???
Yes, that was the agreement. But remember — that agreement was made at the beginning of my journey, before I learned all I know today. It made sense at the time. It even sort of makes sense to me now. But obviously not enough sense, or I’d be driving around in my MINI Cooper. 🙂
“I had a 1982 Datsun 310”
My Dad had an orange Datsun 510 hatchback with a white vinyl interior that I learned to drive on. I hated that car, gutless, ugly, with seats that killed you and to boot no heat in the winter. Dad kept it forever. I shutter at the memory of it.
Hmmm, I had a Focus 2000 ZX3 and that thing was peppy! I drove my brother’s 2002 VW Jetta for a week and found it felt heavy and sluggish in comparison. But anyway, your Focus does sound worth hating and I too had ignition switch problems.
Having bought my current car with cash, I concur with everyone else who says that’s the way to go (if possible, of course). After I became debt-free, I simply established another goal, to save for a car, and managed to do it in three years.
I agree that you should celebrate once you’re rid of your debt, and you have every right to treat yourself to a splurge, but maybe a more frugal purchase is in order 😉
Wow. All I can say is I am glad mine’s a newer model than yours because I haven’t heard of anywhere near these problems. Sounds like you have a lemon.
I get 20 mpg in crushing city traffic. I get about 30 mpg on the highway. The only thing I can share your lament is the lack of power. But it’s a compact car that actually seats four and has a trunk. It’s no shock to me. The only other complaint I have is the amount of road noise that you will hear. But again, a compact car.
I have an ’04 Mini, and it is a great car! I paid for it in cash, which makes it even better – it is one of my favorite financial memories. I concur with the others saying to save up for it. Mini’s will still be around!
J.D., if you want out of your Focus in part because it’s had maintenance problems, you do NOT want to replace it with a Mini Cooper.
I have driving enthusiast friends who adore their Minis, but they spend a ton of time in the shop.
It wouldn’t be worth it to me, even if I had no debt to speak of.
But don’t you see, J.D. — all the reasons you hate the car are the reasons you should LOVE it, because those are the types of cars that will help you retire a millionaire. In fact, I’d like to see you do a GRS wall calendar … each month could feature a photo of a different junk-ass “bondo buggy” w/ a beautiful woman in a bikini on top of the awful car. You could do a little write up for each month, too, like, “Most new cars drop 40% in value during the first 3 years.” I’d love to see junk cars promoted in the ways that status cars normally are, as it’s the junk cars that may actually allow you to buy a status car for cash one day, you know?
Back in ’99 my dad was kind enough to buy me a brand new Ford Escort for graduation. It wouldn’t have been my 1st choice but hey, it was FREE!! Or so I thought. It turns out he bought it for me as a gift, but I had to make the payments. 🙁 Actually, he made the payments on the 1st 6 months, allowing me time to start the new career and get settled.
For the next 3.5 years (42 months of payments), I hated my car. I hated that it wasn’t peppier. I hated that it didn’t have a cd player. I hated pulling up next to someone I knew to my right and having to unbuckle my seatbelt, reach over and ROLL down my window. 🙁 It sucked. And for those 3.5 years I had a list of about 4 cars that I would choose from as soon as the car was paid off. I would definitely upgrade.
The day I made my last payment was the 1st day I began to love my Escort. It’s a great feeling – and I wouldn’t trade it in for anything anymore, unless it was given to me for free (and I mean REALLY free).
Don’t cave JD. Once December comes, I trust you’ll forget the notion of a new car altogether. Stick it out till then!
I see so many Minis in the paper for sale, I can’t help thinking that owners are not satisfied with them. Just a thought.
Plus, think about this. Usually people’s love of a new car fades away after a few weeks and he or she is already thinking about the next one. Flexcar is fun for that reason because you can rent a Mini (or choose from a list of very zippy subarus and even a few convertibles) that you can drive for $8 an hour and then forget about when you’re done.
It sounds like you really detest your Focus, which means that you would derive a lot of joy in purchasing a new car. However, I agree with other commenters: the Mini probably isn’t the right choice. Aside from its hefty price tag, maintenance can be a real pain. You also have to be careful with which maintenance shop you frequent, because with European cars (especially new ones) I’ve heard horror stories of BMWs getting their nice new innards ripped out and replaced with cheapo standard ones.
Maybe you should consider doing some car research, broadening your options. I staved off my car lust this way; I got really nitpicky about the type of car I wanted (good fuel mileage, spacious, inexpensive, safety ratings, etc etc etc) and so was able to put off wanting another car.
Also agree with others: buying w/ cash is the way to go. Even better: if you’re iffy about purchasing the vehicle, dump the lump sum into a high yield savings account and wait for a while. You’ll either find a better deal, a better car, or that you like looking at the numbers on your monthly statement go up and up.
Talk about a gift that keeps on taking, telly. Jeebus.
This will raise eyebrows around here, but a viable alternative for “fun” driving is keeping a budget-priced classic car around for “fun trips” and having a workhorse for daily use. This assumes you have the garage space.
1) Something like a used Alfa or MGB can be had relatively inexpensively
2) In my state and many others, you can put classic plates on them and never have to pay tabs again
3) Insurance is cheap–I pay $200 a year combined to insure three classic cars and a classic motorcycle
You’d probably have to enjoy tinkering a bit, but I do. And while you’ll never win a drag race in an old cheap convertible, when the roof comes down you’ll be smiling.
Compartmentalizing can be a viable alternative if you have the space. Think about something like runs to the nursery or the hardware store that require a truck. You see many people justifying their huge new SUV or truck based on very occasional uses that put its volume to use. If they’re infrequent enough, you can rent a truck or van for the day. If they’re more frequent but still not every day, a $1,200 1978 F150 hauls the same amount of stuff that a $30,000 2008 does, and is simpler, to boot.
Oh, J.D., how I sympathize! We bought a 2002 Ford Focus new, and it is the worst car I have ever driven. It is terribly expensive to fix and seems to have weird issues that nobody understands. All I have to do is say, ’02 Ford Focus’ to a mechanic and the dollar signs come on in their eyes.
We too just made a decision about our cars. We own the Focus and a 1990 Volvo station wagon. Neither ran well, but we just found a good mechanic for our Volvo who fixed the problem for $83 (we’ve been struggling with it for 2 years and have taken it to 3 mechanics who couldn’t fix it and charge $85 just to look at the darn thing). We had planned to sell the Volvo and buy a 200cc scooter, but last night I finally decided to do the opposite — sell the Focus and get the scooter. The scooter is only $3100, gets 80 mpg, and is a lot of fun to drive. It’s hard to give up our very first new car, and even harder to admit that it was a terribly mistake to buy it, but I am happy with the decision.
Now, if only we can sell the Focus. 🙂
I know it’s a hard decision, but kudos to you for holding onto the car if it still runs. If you’re ever inclined, though, consider a scooter. They’re a lot of fun to drive, easier than a motorcyle, and it’s hard to beat the gas mileage.
I think it all depends on the Focus you buy…
In late 2001 I bought a brand new 2002 Focus and while it has a few issues I don’t really care for, but by and large I am happy with the car.
It’s had a couple of unpleasant mechanical failures (grumble grumble expensive brake fluid leak) but hasn’t been terribly expensive to maintain overall. Of course I drive as little as possible — I’ve put under 27K on the car since late 2001.
I do hate the thing on the highway, but to me it’s got enough zip. Of course, I hate going faster that 40 mph in any car, so….
I also don’t like the way it tends to fishtail if I brake exhuberantly.
Oh well, my favorite car is one somebody else is driving anyway.
I purchased a new car in may. My old car I purchased in 2000 and was quickly paid off (under a year). I financed my new car over the period of 4 years. It is a hybrid, and at the time it made great sense. 90% of the time hybrids do not make monetary sense. For me it did, however I switched jobs and it no longer makes sense. I am at a crossroads, I sunk alot of money into the down payment, I am not upside down and have been making payments since. The car is far nicer than my old one, sometimes I regret spending so much and placing a large down payment on the car. I do immensely like the car, it was a burden while I changed jobs.
I will take the opposing view and say “Go straight to the dealership and put your deposit down!!!” 🙂
Honestly though… If you have to have a car, MINI is the way to go.
The MINI is the first car I have ever owned about which I can honestly say there is not one thing that I DON’T like about it. It is amazing, beautifully styled, and fun to drive. Name the last time driving was fun…
My wife told me about this post (trust me we are frugal). But there is something to be said for enjoying life while you have it and to me the MINI is one of those things that makes life worth the living. It is really that much fun. Cult like… sure!
I can understand the dilemma. But the MINI does come with 3yrs/36,000ms of BMW service where you don’t have to do anything but put gas in it. They even change the oil. And as you pointed out they really retain their value. Is it a good investment? Of course not! It’s a car! But man, what a car!
Here are some pics of the wife and I.
http://2ndmileproductions.com/MINI/DSC07781.JPG
http://2ndmileproductions.com/MINI/DSC07778.JPG
http://2ndmileproductions.com/MINI/DSC07772.JPG
Also for anyone interested there is a great podcast about MINIs at whiteroofradio.com.
One final note… it is MINI (all caps). Mini is the classic models, while MINI denotes the newly restyled car that came out in 2002.
J.D. I wish you no ill will, but I pray that death comes quickly to your Focus.
Why I hate my 2000 Ford Focus ZX3 – by livingalmostlage…Funny…I just wrote about this today too.
I hate my DH’s 2000 Ford Focus. The thing has 70k miles and is about to die. I already replaced the key column, you need to do that to get the key out. Cost $100, except try waiting at 10 pm in a parking lot on a Friday night for a locksmith! Lovely waiting 2+ hours.
Second all the work I’ve had done and will have to do on our focus. Disclaimer…2000 Ford Focus have the WORSE reliability, it’s gotten better but it’s no Toyota! We have replaced the gas pump, replaced the spark plugs, had to retune the engine because the spark plugs misfired, replace the brakes and rotors at 24k (common problem), key column, and reweld the axel because it was cracking.
What I need to do now! Replace the water pump, timing belt, clutch, radiator. So this will cost abou $3k, the cost of the car nearly.
Hence today I began research 97-98 Subaru Legacy Wagons. I can use the AWD, it should cost about $4-5k, and I can get a MUCH MORE reliable car without breaking the bank.
I had to ask myself is it worth tossing more money into this crap ford focus?
FWIW, I have a 99 Toyota Corolla, I just replaced the brake pads and rotors after 80k+ miles. NO other work except oil changes. Thing will run forever. I’m sticking to Toyotas from now on and so is DH. He made a STUPID mistake in 2000, but live and learn. Don’t buy crap american cars. Invest the money in a Honda/Toyota and hopefully subaru.
Love is love, and hate is hate, and J.D. you are entitled to your opinions and desires! I myself just escaped from a car I hated hated HATED into a my dreamcar. I smile when I see it. I smile when I drive it. It’s funny – it has its own problems (the trunk lift thingees need replacing, the driver side door doesn’t stay open) – in fact, there are probably just as many problems with it as the other car had, but since I LOVE my “new” car, my life is better.
I do agree that now’s not the time to spend $25k on a new car. Can you sell the Focus and use the cash to buy something else that will serve you in the interim? There are lots of peppy high mpg used cars available on Craigslist.
Good luck. And congratulations!!!
One thing that no one has mentioned here is that used sports cars might not be the best deal. People who buy sports cars often drive them hard and when you buy a used one you risk getting a car that has taken a bit of abuse (see Ian’s comment about the autocross).
Normally I would recommend buying a used car, but in the case of the MINI Cooper I think your best bet is to keep driving your Focus until you can buy a new MINI for cash (or at least put a substantial amount down).
Good luck from someone who got a used Toyota Echo last December (for cash) and doesn’t regret it. I hope you get your dream car soon!
I have to say you are lucky. I’ve had my car for less than 2 years, and loathed it since day 1, but I had no choice (old car died in the middle of nowhere, and I had a pressing engagement). No way I’ll make it 7. So Christmas or shortly afterwards it’s gone. I more or less paid cash for it, but still that’s $15k in 2 years. What a huge waste.
I think cars are one of the few things its best to go with one you want, even if you have to spend a bit more. It’s like a spouse or a house – somethings you don’t get alot of chances at and you have to spend alot of time with, so get one you like.
I have to wonder how/why Corvette-affordin’ Dave C can drive his mom’s car 6 years out of college. My mom would tell me to go away and leave her car alone. Some things I read on here make me say huh??? And I don’t mean to make light of any medical issues she might be facing.
J.D. I too love the idea of a Mini Cooper, but when I went to buy a new used car recently (new for me) and was checking out Consumer Reports – they didn’t give Coopers a very good rating as used cars. So I bought a Civic instead (wish I could have afforded a hybrid but they are out of my price range right now.) One thing you might consider, even though the Focus is driving you nuts, is to hold off for another year or so and drive different cars, experiment to see if you really are attached to the Cooper or if it’s a passing fancy based on your U.K. experience. As you said, it is a budgeting dilemma, so best to be sure if you are going to splurge.
@ #46
Situation is my mom has two cars, this one for a very long time. First car I’ve known that will die a death from time before use, 65k milies at 15 years old. With gas prices what they are and considering how much I hate driving my truck, plus the fact she wants to see it get started and used… tried giving her my truck, she didn’t want it. When the snow comes, or anytime she happens to want it, I’ll take it back. But we’re like that, being a family and all. I’m sure if I wanted/needed to drive her 30k car vs. the 1k she’d let me…if not this long-term.
The mini is a very expensive little car to own. It’s a BMW, even though its branded MINI. You have BMW parts, BMW labor etc when fixing it.
Secondly, its a BMW. It requires Premium gas.
Thirdly, it gets absurdly low gas mileage for how little it is (we see 21-25 with a stick).
While my wife loves hers, it is not a frugal car at all.
–Michael
We have been looking at a new(er) car, because we have a second child arriving soon and a Honda Civic for all of us. It’s a bit cramped even now, when it comes to going out of town or toting stuff around. But then we realized we could probably just buy a roof carrier for $600. So now we’re looking at that.
Here’s how I’ve been able to shake that itch. I’m down to only having a mortgage for debt, and finally decided it would be REALLY nice to be 100% totally and completely debt-free. What a great feeling that would be!
So when I have that itch to buy something… new appliances for the kitchen, a bigger house, a house in a better neighborhood, etc, I just make one comparison. “Would I rather have that sparkling stainless steel oven or would I rather be $1000 closer to owning my house outright?” I have become so much more frugal since taking that approach to purchases!!
Man, don’t do it. As you’ve noticed yourself your values and goals changed in these last few years and it’s best to acknowledge that and keep working towards them. It might also be interesting to you to calculate the TCO (total cost of ownership) for any of these cars (Focus or Mini). It will really be mind bending to see how much you’re really spending for a car.
popular subject!
-my coworker had a mini s model that spent a ton of time in the shop….talking about 25% of the time. He sold it after 10 months
-girlfriends had a ford focus and it was terrible..was falling apart…stalling on the freeway…was well maintained…interior parts broke
-I understand everyone’s need for a toy. I luckily chose motorcycles which are fairly cheap when compared to $25k cars. Where else can you pay $6k for a 3 year old low mileage vehicle (less than 5k miles) that has amazing performance, is reliable, and will give me years of enjoyment. It’s cost effective fun for me and considering you can get an older non-sportbike in excellent condition for a few thousand it’s easy to get into. Depreciation on a 5+ year old used bike after a couple of years of use is only in the hundreds of dollars if any
Nothing wrong with a buying a car used or new, it’s best to have a plan for the purchase though. Ideally I think cars should be brought in cash. If you can’t pay cash for a car, you can’t afford it.
Wow! I ride my bike to work, live in a single car home with two kids and have been dying to get a mini coop for the past few years. Thanks for putting this in perspective.
PS… I gave those cards from the New Yorker to my son. He’s been carrying them around since like trading cards.
JD
Why not consider getting rid of the Focus and going with something other than a Mini Cooper? It sounds like the Focus is a lemon. But that’s no reason to go off the rails and drop 25K on a car. Sell the Focus on Craigslist and buy yourself a Honda… I suspect that your dream car will become a nightmare if you actually buy it. (You’ll kick yourself over the debt, especially when the Cooper is in the shop.)
Good luck,
DJM
I completely feel your pain, here. I even whimpered a little when I saw the MINI pop up on my screen this morning.
Strangely, a MINI is what got me to be serious about managing my own debt and poor spending habits. I wanted one desperately, and I already had the temporary tags on it and the keys in my hand. Then I stopped and realized that I was making a horrible decision for myself at the time, and I took it back. Impulse buys were bad enough for me when they were restricted to books or plants or the other things I enjoy, but here I was buying a car that I really didn’t need. (My current car, a six year old Kia, isn’t the greatest in the world, but it still runs just fine).
For the first time, though, I had a goal that was difficult to work toward. It wasn’t just “if I don’t spend money on fast food this week, I will buy myself that book I’ve been wanting,” which is the extent of what most of my spending goals had been.
This time I had a big goal. Get out of debt completely. Then I could save all of the money I’d been funneling into debt payments for a year and use that toward the purchase of that MINI.
(And yes, I know, even this is still counterintuitive to some degree. Why get out of debt just to get back into debt over a car, but (a) a year’s worth of what I’m paying into debt right now is half the cost of a MINI and (b) I have to be fair to myself and keep the goal close at hand, i.e., within the next three years. Otherwise I’m more likely to get discouraged and say “geez, I’ll never get a MINI so why bother with all this debt.”
The truth of the matter, though, is that I have a feeling putting debt back onto a freshly-cleaned slate will be much like brushing your teeth in a freshly-cleaned bathroom sink. Once I get my debt clean, after all the hard work it took to get it to that state, I bet it will be much harder to “mess it up” with 12k of car debt, even if it is for the car of my dreams. I’ll cross that bridge when I get there, though — MINI or no.
(crap, there are a bazillion comments.)
I am in a similar situation, kinda. I will be debt free by 2011. Would be sooner, but I am not fond of apartment living and getting a house and ripping out the carpet is a major issue coming this spring. However, my car, the one I want, they stopped making in 2002. The Caddilac Eldorado ETC. Oooh, the rediculous opulence and power, without the enviro-hatred of an SUV.
Oh, and just be glad your 2000 Focus doesn’t hum INCREDIBLY LOUDLY when the engine is cold. Like my wife’s car. Focus = crap.
I think part of the equation should be how much money you save on gasoline with a MINI. If I bought one now I would save about $100 a month… of course, I have a 20 mile commute 😛
My boyfriend looked at MINI Coopers when he was considering what new car to get. He also wanted something with pep, as well as really good gas mileage.
One note of warning–you should DEFINITELY go to the insurance institute for highway safety (www.iihs.org) and compare different cars in the class you’re interested in (mini cars or small cars) to see how they perform in crash test ratings. That was what ruled out a MINI for my boyfriend, although obviously your tolerance for risk might be higher. (He ended up going with a Honda Civic.) As I recall, while front crash test ratings are fine for the MINI, side and rear impact tests had the car performing pretty poorly.
Maybe that will help you resist the urge…
We have a MINI and it’s incredibly cheap to insure. We actually pay less on our new MINI than on our 10 year old Ford with 120,000 miles on it. Think of that. Plus we got a MINI credit card and earn points to pay for service for our MINI.
We love it.
Here’s the problem I see with the way you’re looking at the cost of a new car. By simply not buying the Mini you aren’t necessarily saving yourself $25,000.
For starters you have to take into account the obvious factor that eventually you will have to replace your Focus. Cars have a limited lifespan and there comes a point where they just aren’t reliable enough to keep.
Secondly you have to take into account maintenance. A 7 year old Focus is likely to cost a lot more to keep on the road than a brand new car that’s still under warranty.
And then you have to take into account all of the other factors like tax, title, license fees, fuel economy, etc…
My advice, sit down and do the math. And don’t just do it for the Mini. You should be considering several different vehicles both new and used. IMO it sounds like the best option for you would be to drive the Focus for one more year while saving towards a new car then get a used small sedan, something like a Honda Civic or Mazda 3.
JD – Don’t do it!
I picked the base model, with no options, $18,050.
In the first year alone, Edmunds indicates that $4000 will be lost to depreciation. That means you lose 18% of what you just paid.
Looking at the 2006 base with no options, dealer retail is $15,307. So thats a difference of 2700, but then you’re buying from a dealer.
That is not counting the sales tax and higher registration fees for new or almost new cars. That doesn’t count auto loan finance charges. Definitely don’t buy ANY car unless you can lay $100 bills on each other.
The best thing I’ve ever done with buying cars was the ’94 Camry we bought a few weeks ago. I paid $3000 for it, then about $280 in sales tax and registration, and its half the cost of insurance. Plus its a Toyota, with legendary Toyota reliability. To top it off, I love driving it (V6 :)), as does my wife. And its got a moonhole.
After the Toyota purchase, we’re pretty firmly entrenched in the “buy reliable used cars” mode. It allows us to be frugal, and save tons of money. Don’t get me wrong though, I love cars and I love to drive, but thats a sacrifice I’m willing to make for financial peace.
Oh I loved my 1980 Datsun 310, it was the BEST snow car. I lived in Eastern Washington, and it got me through blizzards. It had pep too, but the gas mileage was so-so. I sold it when I moved to California — it didn’t have air conditioning. Great student car though.
J.D.
One of the things I learned from Weight Watchers was, when you reach
your goal weight after losing some number of pounds, reward yourself.
However, you should not reward yourself with FOOD!
When I reached my goal weight, I bought a really nice road-bike, which
led me to begin riding my bike to work. This in turn, has helped me
keep the weight off, re-enforcing the good habits I worked so hard to
create.
*Your* reward must be something which will *re-enforce* your good
habits and hard work. If you’re just getting out of debt, you must
reward yourself with something which will re-enforce your good habits,
and further you to your next goal. Don’t buy a car, buy a bike. It’s
something you can probably pay cash for, and, you’ll then be able to
ride your bike to work and the comic book store. This will have
several positive effects.
1) you won’t be driving as much, thereby saving on gas, wear and
tear on the car, etc.
2) you won’t be spending as much time in a car you hate.
3) you won’t go back into debt immediately
4) you can take your existing car payment and save it towards a new
or used car and be able to pay cash for it when the time comes.
Or, you can put it towards your mortgage in order to get completely
out of debt.
But whatever you do, don’t celebrate getting out of debt by going back
into it. Don’t shackle a 4 or 5 year commitment to something you
don’t really need. Read you own post. This is purely an emotional
purchase! You have a car. Sure, it’s less than ideal, but it’s
*yours*, not the banks!
Celebrate by you and Kris cooking a huge meal and inviting a bunch of
friends and family over and have a party or something. It’ll cost
less, and you’ll have a great time 🙂
By the way, I just finished reading Liz Pulliam Weston’s latest
articles about the 6 couples who retired early. They didn’t do it by
making emotional purchases 😉 Be tough, hang in there, and save that
car payment!
New cars are a scam. But if you want to change your car, go look at a used Honda Civic (my first car) – in fact, I have only owned Hondas, 3 of them, so I may be biased. But they run forever, are very dependable, and hassle free. Who doesn’t want that? And I don’t even like driving that much anymore – I bike to work everyday.
I, too, am resisting purchasing a Mini. I, too, have a 2000 economy car (saturn), and find myself wishing for more pep.
Figure out what kind of loan you would get on the Mini. Figure out what your payment would be. Throw the same amount (or something like it) into an investment of some sort. In the meantime, follow Minis, learn about problems they have and what it costs to fix them, what problems are fixed in new model years, etc.
Given the poor resale value of Focii (I love these plurals, like Taurii, etc), drive it into the ground! When it finally croaks, buy a new (or maybe used, as you’ve accumulated lots of Mini knowledge, and started liking the car back when these models were new) Mini. You might have enough saved up to pay down half of the new car, or pay it off entirely!
That’s what I like to think I’d do. I’m 23, so my current savings are for a down payment on a house =
Just wanted to say that I’ve got a ’94 Accord (bought from my parents back in ’00, I think) that now has 205k on the ticker and is going strong. I’m shooting for AT LEAST 250k but hoping for 350k or more!
My next car will definitely be a cheap, used Honda for cash. After that I may get a “fun” car, for cash. I really think the way to go is get a cheap, reliable every day driver and then a fun car or two that you don’t have to worry about being reliable, getting good mileage, etc. Of course, you need the garage/parking space.
Think of the incremental differences between your current car, a nice used car (think Mazda3), and the new MINI. Will the Mazda3 give you $200/month more enjoyment per month than your Focus? Probably. Will the Mini Cooper give you $200/month more enjoyment than a Mazda3? That’s a question for you to decide.
After you’ve answered that question in the present, project that forward into how long you’ll likely keep the loan. Remember, if you’re planning to pay it off early, the incremental differences between your options will be even higher.
Now, after you’ve thought through that, think about what your next best option would be for that money, and calculate how much enjoyment that would bring you. This is known as the opportunity cost. If you sink $400 a month into a car payment, that’s $400 you can’t use towards something else.
Hope that helps!
DJ
“This frugal living stuff has become a habit.”
Hurray! For me, this one line stood out more than the entire discussion about buying a car.
I feel your pain, as I’m soon to be (I hope!) in the same position – debt free (except for mortgage) and ready to buy a new car.
But, like you, I don’t want new debt after paying off all our debt. So my plan is to find a reasonably priced good nused car and then save a good chunk (if not all) of cash for a downpayment and then work like crazy to get the car paid off within a year.
JD,
Buying a used car is usually one of the top priorities when living a frugal lifestyle.
What about if you buy one of the 10 most frugal cars?
It’s not a mini, but the Honda Fit has me wavering on used vs. new.
I stick to the rule that I never buy a car that costs more than twice my netto month-income
(so that would be $ 3.350,-)
Why, because a car is the worst investment you can ever make, so you´d better not invest a lot of money in it.
If you buy a car for that amount, you be able to save that amount in the next three years on a seperate savingsaccount
($ 3.350,00 / 3 / 12 = $ 93,00 , but do not forget that you can sell your old car for a third of the buyingprice is $ 1.000,-… So that would be $ 3.350,- minus 1.000 = 2.350,00 / 3 / 12 = only $ 65,00 saving a month)
When buying a car I search the internet for the cheapest car with the fewest mile-age and I buy that car.
I don´t mind/care what other people think or say – it´s just a car. I would be better of without it, but publick transport here in the Netherlands isn´t that great.
If you think that your car is a status-symbol, than I suppose you don´t need to visit this site anyway, because you´ve got the money to spend!
Hi JD,
I have a MINI and I love it to bits. I don’t drive it much any more because our son’s car seat doesn’t fit (backwards), so my husband’s the lucky driver. However, I have no regrets. I hated my last car, which makes me appreciate this little guy so much. It’s a really fun drive. We got the base model (e.g., not the S) with a manual transmission; the S would have been peppier, but the transmission helps counterbalance that. We got ours for 19K out the door, and we got everything we wanted in it. Insurance is reasonable, the first 3 years of service (inlcuding everything except tire replacement) are covered, the mileage (city driving) is closer to 22 MPG (better on the highway), I can park in the SMALLEST spots, it has a great safety rating, it feels sturdy, we’ve never had any problems with it (mechanical or otherwise), and it retains its value better than a LOT of other cars.
That said, I can appreciate your unwillingness to get back into debt. If you save up and pay for it cash, that would be another impressive personal milestone. Or if you buy a used one, you won’t be at a loss for the “drive-off” depreciation any car experiences. Either way, thinking about it gives you time to research the best option, and weigh it against the “fun” factor. There’s a lot to be said about enjoying what you drive. But if you’re going to reduce your driving anyway, perhaps a cheaper small, safe, reliable car is better suited. You can always rent one on birthdays for a treat. Either way, I hope you opt for something safe and cheap.
Buying a new car to reward yourself would be like a dieter going on a binge right after reaching their goal weight. It’s not good for your health and will leave you feeling sick afterwards. Congrats on resisting!
Do you need a new car? No then don’t buy one. Think of that little smilie you’ll have on your face when your mortage is gone.
Debt gone = Buy new computer/take family out to expensive resraunt. Or invest the monthly payments in an Index fund or pay off your house.
Buy most expesive coffee.
We spend a lot of time in our cars – Don’t drive one you hate. There are many other options out there.
For just a few k more than what you could sell your focus for, you could get a fun car to drive, or maybe not even that.
I picked up a 6 year old Mercedes c-class for 8k. It had 80k miles on it. IN the 2 years, and 15k miles I have driven it, I have only had to replace the brakes, and do an ac vent fix, and replace a burned out bulb. All told, including the oil changes and maintenance, less than $1200. I could sell in now for around $7k. It has been a hoot to drive, looks good – classic good(i get a tad more respect from the valets), and it has been very safe. It is expensive to fix, so shop for a well maintained version, but I anticipate this car going to 200k easy.
My girlfriend has a 2003 MINI. It has required nearly $5k in maintenance in the past two months alone. She hates it, and is very jealous of my Civic (which I love).
JD – I looked through all the comments, and I didn’t see anyone else mentioning this story from CNN/Money: http://money.cnn.com/2007/08/30/autos/cr_drive_200k/index.htm
The first sentence says it all – “By keeping your car for 15 years, or 225,000 miles of driving, you could save nearly $31,000, according to Consumer Reports magazine” How’s that for frugal? 😉
What about leasing?
I love leasing, but I know it doesn’t work with everyone’s lifestyle. I leased a 2004 Honda civic for 3 years and just turned it in this past June… got into a new lease last month on a 2007 Mini Cooper (same exact colors as the one in the ad you posted!).
It works well for me since I have very good credit. I have a monthly payment that fits in well within my budget, I don’t have a far commute (so 15k miles a year is more than plenty)… and I absolutely LOVE my car. It’s new, under warranty for the 3 years I’ll have it, the insurance isn’t much higher than it would be with a somewhat older car (it’s actually cheaper than the car I had before since the newer one has better safety features). The other thing I like is that with new Minis, like BMWs, ALL of the maintenance for the first 3 years is included.
Anyway, I really can’t say enough about how much I love my car.
I know I’m different than many people, in that I don’t really think of cars the same way- it’s not an investment, and not purely functional for me. I think of cars as a luxury since it’s something that if I had to I could live without. But, since I’m choosing to spend the money to have one, I may as well have one that I love.
I just read this article last week, but couldn’t remember where, so couldn’t mention it 🙂
Thanks for posting it. This article is what has prompted me to attempt to keep my current vehicles for as long as possible.
My car is paid off in March. For the next 10 years that car payment is going to be put into an index fund 🙂
I haven’t read the rest of the comments, but I’d like to add my two cents:
– a Mini feels a lot larger inside than it looks.
– a Mini is an absolute blast to drive!
I could have almost written this post word for word. I haven’t bought a Mini yet, but damn I’ve spent a lot of time obsessing. I justified the thoughts environmentally, since they’re pretty efficient little cars.
Congrats on fighting the urge. I’ve been debt free for over a year, and have just over $25k in the bank. I could “buy it outright” as some commenters suggest. But how stupid would it be for me to just burn that 25k on a depreciating asset like a car? I’m realizing it’s easier to justify selling your future self into slavery (i.e. taking a loan) than it is to part with cold, hard cash. (Well, it’s digital bits in a bank somewhere, but it feels more real than the nebulous concept of debt.) So there is some positive reinforcement to having savings, in that you become very reluctant to tap into it.
Astreil’s statement about “deserving” is scary to me. That’s the same way I’ve justified awful purchases in the past. It’s how a depressed, overweight person justifies eating a treat. Ok, maybe you can make some allowances for “fun” spending, but it certainly shouldn’t be something that represents years of savings.
Personally, I don’t hate my existing car, and it’s reliable enough. I bought a new bicycle instead, for $400. It’s great.
JD, have you actually driven a MINI yet? Based on personal experience, there have been at least two cars that my husband and I were certain we wanted. Then we went for test drives, which made it painfully apparent that those weren’t the cars for us. So, if you haven’t driven one yet, you might want to go do so, especially if you are a driving enthusiast. The test drive might whet your appetite for the car, but it also might let you know that the MINI isn’t exactly what you wanted.
I am not going into the whole frugality/cost thing, b/c you obviously have a good handle on that. I would just recommend driving one before you set your heart on it.
Excellent article, and the comments are wonderful too.
One thing to throw into the mix: is the MINI something you want, or something you want to want?
We have four cars: a 2000 Astro van for my business, a 1997 Volvo wagon for my husband’s business, a 2006 Hyundai Sonata for the family car, and a 1994 Honda Accord we bought for our son. All were paid for in cash, and only the Astro was purchased new (which I would never do now).
I’ve always wanted a convertible. I sigh every time I see a Miata, and a Boxter just gives me goosebumps. But the funny thing is, I think I like the idea of wanting it more than I want the thing itself. By just desiring it, I have the fantasy and all the possibilities contained in it: I’m driving with the wind in my hair; I look sexy and attractive, I’m “not the mommy”. But then I think about the reality: I’m very fair, and burn easily; so I really want to slather on sunscreen every time I put the top down? Do I want to risk having stuff stolen out of the car every time I park it somewhere? Do I want to get drenched by sudden downpours?
I’ve managed to avoid many impulse purchases by forcing myself to imagine all the aspects of owning the particular object. Most of the time, I discover it’s the aura that is seducing me, and once I actually own the object, the allure will have worn off and I could be spending valuable personal energy continually justifying the purchase to myself — and others.
I’m with Mo. My wife is so hard on cars/trucks that I have to lease her vehicle. She only gets them for 24 months and 30K miles. When she turns it in, it needs, brakes, tires, etc… I am saving money this way. Mine I buy over 48 months drive for 60 and have a nice down payment with the trade-in and the extra year of payments in the bank. I drive a lot too and am easy on my cars, but after 5 years, it is time. Reward yourself with the car! You can’t take the money with you if the next big rig hits you too. Life is too short, enjoy it. I am not saying not to save, but enjoy life while saving.
JD, don’t sign up for car payments!!! I know you hate that car, but save up cash
and get something you like better until
you can afford the MINI.
I hate car payments more than anything. Last
year finished paying for our Subaru that
hubby drives. I am driving an 88 yes 1988
Toyota Tercel and will be replacing it soon.
It’s not pretty, has no CD player, heck they
didn’t even have those in 1988 did they?
The radio works only when I hit a bump.
The overhead light died long ago, the cassette player doesn’t work either. Yes I have roll down windows. No hubcaps, and lots of rust. Defroster is useless……
Have saved 10k in the car fund….amazing
what you can save when you have no more payments (debt free except for the house)
So this month is officially car shopping month for me ….and not a minute too soon
since I’ve taken lots of ribbing for driving
my old wreck. I am tired of the people who
ask me who was president when I bought it
(Reagan, I had to look that up)
That said, I’d probably buy another Toyota,
they last forever!
Cars are an emotional issue. Someone above said we’re not what we drive … but they seem to reflect something inside us. My ex-spouse had a habit of fighting depression by buying cars. This made it so difficult for me to buy a car even when i needed one. Poured so much money into my old truck. Finally four years ago, went and bought new, very reliable Honda. Paid it off in two years, hope to have it forever — even though it’s so “not me”.
It seems very likely the author has a base model Focus and a lemon at that. 2000 Foci had terrible reliability, but his sounds especially bad.
Regarding hating to drive the car… Besides the mechanical issues, maybe he has the base model car with non-Zetec engine and crummy tires? I have a 2000 Focus ZX3 with the Zetec engine, new summer performance tires and 120,000km… despite the age, I recently had a great time on the two lane twisty highways in Cape Breton, Canada.
RE: MINI. The 2007 MINI Cooper S is one of the few on my short list of new cars. It is a truly fun car to drive with loads of character. And like other posters have mentioned, the base model Cooper is still fun and has exceptional handling.
RE: Purchasing a used Mazda3. This car is based on the new (European) Focus platform and has great handling for the price. However, I would suggest caution as the Mazda3 without the side-curtain air bags faired very poorly in side impact testing (2-stars I think).
I think it’s tough when you have a car you don’t really like–but is the latter worth the atrocious car payments? The best compromise is to lessen the debt and go with a used mini. I say start getting ready for your new (used) mini now and put out the word. Even though it is an uncommon car, chances are you will come across it at a steal and you need to be ready. Three times I have missed out on great deals because I didn’t have the money.
Once, someone I knew was selling a one year old Prius for $12,000. He was only willing to sell to a friend or friend of a friend because he wanted someone he liked to get such an amazing deal. I wanted that Prius, but didn’t have any money to pay for it. Second, I was kinda looking at the mini. I saw a one was being sold used (in blue with white stripes) at a dealership my brother in law worked at (then not now). He told me he would help me get a great deal (he had for other family members) but I had no money so I had to decline his offer. Third, my sister was selling her low mileage (30K) C230 Mercedes for 12,000–only for what she still owed on it and she gave first dibs to family members. I wanted it, but again, lacked 12 grand. I felt sick to my stomach I missed out on such a great deal.
I guess what I’m trying to say is you put out your mini car desire in the world karmically (and on this blog). You never know when your mini could pop up in a great deal, so just be prepared.
Buying and keeping a cheap car was the key decision to keep me out of debt.
In high school, I bought my first car, a ’95 Plymouth Neon. I kept it until I graduated college. Everything was broken on it by the time I got rid of it, but I saved a ton of money on gas, maintenance, and insurance. I think it even made the rest of my frugal decisions easier, because it was a constant reminder that I was not living at the Rits. my sisters/brothers and friends all got into the two to three year cycles of buying fresh cars. They all left college with a ton (like $40,000) of college loans at schools that don’t cost as much as my school.
Now, I am more than debt free, and I work at an engineering firm with thirty of the smartest people I’ve ever met. We share a parking lot with a company that has a lot of manual laborers. It’s funny, because when you look at the cars, the ones on their side of the lot are a lot nicer/newer than our side! I don’t know that everyone here is in the same financial situation as I am, but I’d bet some money on the fact that the engineers don’t have these cars because they are short on cash!
I am bitten by the MINI marketing hype also. Indeed, a lovely car it is. I have been wasting HOURS browsing eBay listings over the past two weeks but after reading this post and some of the comments, I have decided against the purchase.
I am 32. I drive a 1998 Honda Accord 4 cylinder. It’s pretty beat. My previous car was a 2006 Lexus GS430 (bad, bad, financial choice). Sold it and now am totally debt free and have managed to start contributing to a 401 plan and build up my savings nest egg and also play the market a bit.
I will keep the Honda and run it into the ground at least for another 5 years. I will spend about 2 to 3k on performance and audio upgrades and detailing to give it a bit of a kick and make it feel like new again. Going from the 8 cyl Lexus to this 4 cyl Honda wasn’t easy. This thing does 0 to 60 in 9 days. Gas is great though.
Having not read all the comments, I want to add something that may have already been addressed.
I own a 2004 Mini Cooper. Amazing car, but I just had my first not-free service. A Mini is essentially a BMW engine with a really cool frame. Not only can you only bring it to a Mini dealer to have it serviced (one, your warranty is voided if you do, two, no one else knows how to deal with them), but every part is very Mini-specific, very expensive, and you have no way to bargain them down with a cheaper shop down the street. Think about that – tires, windows, everything. I replaced the rear drivers side window recently – $495. That was the “generic” brand’s product.
I’ve absolutely loved my mini up until the 50,000 mile service job. Just beware that in 3 years, that cute little car might put you back into debt (although that’s what a car is for, right?)
I’m debt free with $20,000 in the bank ($15,000 is my emergency fund money). I also have over $4,000 in my IRA and will max my contributions for 2008 in Jan. I got a great deal on a New 2007 ford focus sedan. ($12,500+ tax and licensing) The frugal side of me says buy a better car and continue to stack your dollars but good price is saying don’t pass me up ” .. this is a once in a life time opportunity”. I should buy used but i had such a unreliable use car now (1997 Cadillac Catera 6,500 Then-maybe $2,000 now)I must have put ***over $4,000*** over three and a half years. Reliable foreign models are ten years old and have high mileage for the price h’m willing to pay 7k-8k but I could by a new budget car for $12,000.So should I buy the new Ford Focus or a used Japanese model thats the question?
I understand completely your MINI fever, its a great car! Was reading through this article and was astonished to find that the MINI Cooper costs $25,000 – I live in the UK, and that would roughly translate to £12,670. The thing that hit me, though, was that a company are selling a car in America for comparably the same price as in other countries!! It’s usually completely different, I want to buy a Volkswagen Golf (a VW Rabbit in the USA) at around £19,000 for the right spec, engine etc. In US $, this car would cost around £37,510 (!) but VWUSA can offer the same car, with a larger engine, more equipment and a greater choice of accessories, for around $20,000, which works out as £10,130 – about £9000 less than the UK version, which has less things standard and a smaller engine! How fair is that?
I drove a 2001 Ford Focus ZX-3 before getting a my current vehicle, a new ’06 MINI Cooper S.
The Focus had minimal options and was just a car to drive. It had no pick-up, at any speed, but it got from A to B. I also had to change the ignition on it (see #25, which is completely true).
The MINI is REALLY fun to drive, gets ~36 mpg (mostly highway). The 2007 models switched from super chargers to turbo chargers and therefore get better gas mileage.
In response to #98 Clare: you should try to find a MINI owner’s group in your area. Mine ( http://www.michiganmini.org ) has a “resident mechanic” who knows everything about MINIs, including where to get the least expensive parts and service, which is *never* the dealership. First place to look for MINI groups would be http://www.northamericanmotoring.com
The MINI is my first new car, and I think it will be also be my last.
What about the $4,500 Obama is giving away? Is this the time to buy a new car?
A good rule of “thumb” is to never buy anything with an engine in it. Anything with an engine loses its value while you look at it and while you sleep. An engine refers to an automobile or truck or motorcycle or ATV. A motor refers to an electric motor. The only reason to buy a new car or motorcycle is if you can “steal ” it by the price of it. Also if you do need a car then buy something made in Japan. I have a friend who has owned two Subarus. He puts 300,000 miles on each one and then gives them to his daughter to drive. I asked how many exhaust systems did he have to replace. He said he never replaced any exhaust systems. What about engine trouble. He said he never had any engine trouble. So how does he get 300,000 miles on each Subaru. Each month he changes the oil and filter, the air filter and the gas filter. Does he use synthetic oil? No the lowest cost oil sold at the autopart stores that conform to the manufacturers specifications. I bought a used 1998 Plymouth Breeze with 72,000 miles. Today it has 174,000 miles on it. Im waiting to hit 200,000 and go from there. Yes I had to buy rear drum and springs and two wheel cyclinders and two brake discs and pads and three hub bearings. Yes I had to buy a battery and tires but what car can go 200,000 miles without some maintenance items? I only paid $2200 for the car so I cannot complain.
7-12-09 I’m still driving my well maintained 1990 Acura Legend L & have saved tons of $$ over the years by Not buying or leasing a new car every 3-5 years. Now, I’d love to get a new BMW 335i ($40k) & after NOT making car/lease payments for the last 15 years, can easily afford the payments or to just cut a check for the full sales price BUT, after all these years, I’ve become so addicted to having both no auto payments & making interest & earning on the $$’s, I’ve lost the ability to pamper myself & be a little $$ stupid. Help!