Anyone ever figure out the best way to have the lowest cost of car ownership?

[twobone]

Here is my theory: My problem is I hold on too long


I buy the base model from a solid manufacturer (e.g. 2000 Pathfinder XE)

I try to get one that is a year or two old (bought in 2002)

I pay cash or try to get 0% financing (paid cash)

I keep them as long as possible (still driving her at 193,000km)


Only now she is starting to cost me money and the question of cutting the cord is coming up.

Often I wait too long and I end up putting $2-4K into a vehicle that will only last 1-2 more years.

My theory is that it is better to put a bit more money into it and drive it as long as possible (within reason) to keep the average annual cost down.

I think my average cost of ownership now stands at $3,500 per year before gas.

Any other competing theories?

[Zeke]

First of all, don't buy a 911 or a Ferrari.

Buy low for cash, sell for same in due time. Works every time for me. Gas, oil and insurance is about all I put into a car. Except for the damn Porsches I've owned.

[Porsche-O-Phile]

1. Never lease (don't eat depreciation for someone else).
2. Never buy anything newer than 10 years old (don't eat depreciation for someone else).
3. Pay cash, avoid financing where possible (interest is for suckers).
4. Carry liability only insurance.
5. Do your own maintenance.
6. Get a V1 (prevents "extra" road taxes).

Those six things alone have probably saved me several tens of thousands of dollars over the years. No joke.

[Zeke]

Also, look for cars that don't sell for a premium used. Contrary to popular thought, buying a high priced used car like a BMW or a lot of pick ups puts you at risk for more depreciation. It's percentages that will get you. 10 % of 10 grand is less than 10% of 20.

You can buy a lot of Camary (or Cadillac) for 10K.

[Laneco]

In my humble opinion, a 2000 Pathfinder would not have been on my drive it till it drops radar. I did have an earlier one, the body on frame model (yours is unibody) and it was a nice rugged little truck that served well for several years. Sold it with about 250,000 on the clock - zero running issues. I did put a starter into it and a battery when I first bought it. Nothing else.

Where I am going with that diatribe is that with a manufacturer, there are cars that are better than others. Even on a particular car, there are certain years that are better than others. In this world of global economy, the badge might say Ford, but it's really a Mazda. The Mazda6? Look under the hood - the V6 models are Ford engines. Want a Chrysler Crossfire? Look under the hood. Pretty German looking. It should be, depending on year it's a mercedes drivetrain for cheap.

That said, look at cars whose odometers have turned over 100K. Big price drop and most of them who are in sound condition at this point, will usually run another 100K. Budget a car payment every month for the vehicle. Let' say, $200Put that $200 into a savings account every month. At the end of two years, if you haven't used the dough for a failed transmission, etc., then you have almost 3k in your pocket.

It is very important not to get crazy repairing little things that do not improve the safety or use of the vehicle. That niggling rattle in the dash? Ignore it. Suspension bushings a little worn but safely driveable? Ignore it. This is NOT a new car. You'll will throw money down the drain fixing little easily ignorable things that will not gain you a single penny on a high-miles resale. Fix major components that affect service and those that are safety related only. That's how you keep a cheap car.

angela

[McLovin]

My 911 daily drivers have proven to be the lowest cost of ownership cars that I've had, although others have been very low too.

Here's what I do. It's not for everyone, obviously.

1. 911. Here's a typical example. I bought a 911SC for $12,500 in 1992 (that was a very good deal at the time, I had to search for it). I drove it until 1997, put on around 50K miles. I did all the maintenance myself. I have it all written down on a maintenance log (I do for all my cars), there was nothing major, really all just regular oil changes, tires, brakes, etc. There were no major mechanical "hits." All in, it was less than $4K. Sold the car for $14K. Per mile, it was a very inexpensive car. I bought my current G50 Carrera for $16K. I don't expect to ever sell it for less than that. It has been many years with that car now, and pretty much only oil changes, etc. Been very cheap.

2. Used Sedans. Done similar with 3 and 5 series sedans. Search for a good used one, buy it right, and drive it. I did great with a E28 535is. I had it it for years, bought it with 60K miles and sold it with 180K miles 9 years later for $900 more than I paid for it (b/c by then, the E28 had developed a cult following, and mine was very clean). That car did need quite a bit over the years, but I did all the work myself. Radiator, suspension bushings, exhaust, hydraulic brake parts, brakes and rotors, I also had to put a new head gasket on at around 160K miles. If I had a shop do all the diagnostic and repair work, it would not have been economical. But DIY, it was very cheap per mile.

3. New Car. I've only bought one new car, a Mercedes. It is now over 10 years old. I still drive it, and will hand it off to my son in a few years, and he'll take over. I expect at least 20 years use out of it. It needed work under warranty, but once those bugs were worked out, it has been reliable. I do all the maintenance. So far, it has not required any non-warranty repair, other than regular maintenance, which is DIY very cheap. Cost for mile on this is more expensive than I usually do, but by the 20 year mark, it shouldn't be. Although this is fine, I won't ever buy a new car again. Too expensive and too much depreciation in the first 3 years.

4. Almost new car. This is probably the best for most. Buy a quality used car with a year or so left on warranty, drive it for 10 years, and do the repairs yourself. If you can't do the repairs yourself, don't get one that has expensive labor costs (MB, BMW, etc.).

[Dantilla]

Wait until you find a killer deal on a desirable car- Not an appliance like a Camry.

Drive and enjoy it for a while.

Sell it for more than you paid.

I've done this with early Camaros, an early VW Bug, a couple cool pick-up trucks, a Corvette and a 912.

[1990C4S]

I think you are pretty well there.

Sell when the cost of ownership exceeds the interest (or lost interest) cost of a newer more reliable car.

I have a 97 Volvo (200,000 miles) that is totally reliable and costs less than $500 per year on maintenance. It is also a really nice car to drive.

My other car will soon be a Jetta TDI with 200,000 miles. Same low repair costs, but less fuel.

For me, two crappy cars are cheaper than one 'good' daily driver.

I don't think I can cut my costs too much beyond where I am now.

[1990C4S]

Originally Posted by Laneco

It is very important not to get crazy repairing little things that do not improve the safety or use of the vehicle. That niggling rattle in the dash? Ignore it. Suspension bushings a little worn but safely driveable? Ignore it. This is NOT a new car. You'll will throw money down the drain fixing little easily ignorable things that will not gain you a single penny on a high-miles resale.

angela

I disagree with Angela on this part (for the first time ever). I fix all those niggling little things. Why? Because it's usually cheap. Buy a cheap part, install it yourself. Glue down the loose trim. Clean the carpet. Throw a sheet metal screw into the tailgate trim, to get rid of a rattle.

The result? People who drive with me get in my car and say 'Wow, this is still a really nice car'. But I don't do it for them. I do it for me, so I don't look at newer cars on the road and say 'Gee, I wish I had a nicer car'.

And I do it for my kids, so they don't think an expensive car is 'necessary' when they start driving.

[1990C4S]

One more thought: salvage title.

Drive it into the ground. Who cares about resale value?

[Noah930]

Get a job that gives you a work vehicle that you get to take home.

[McLovin]

I guess in a nutshell, the best way to have the lowest cost of ownership is to be able to work on the car yourself.

That saves $$ in two ways, (1) you save on the maintenance costs, and (2) it allows you to drive older, depreciated cars affordably.

I've saved literally $100K+ by doing this, compared to most of my colleagues. They almost all lease cars, at around $900-$1200/month. So, for them, a 3 year lease is close to $40K. In 10 years, that's over $120K in lease payments. And that's for just one car, the wife usually needs one, too.

[pksystems]

Where are you guys finding people dumb enough to pay, what you originally paid for a used car, after you've added X miles to it?

[krystar]

Originally Posted by pksystems

Where are you guys finding people dumb enough to pay, what you originally paid for a used car, after you've added X miles to it?

honda fanboi's.

who in their right mind would pay $8k for a 91 honda crx...when kbb value is $1500

[GH85Carrera]

I bought my 1986 El Camino back in 1991. It now has 286,000 miles on it. The heads have never been off. I bought a set of Autozone guaranteed for life brake pads 18 years ago for 14 bucks. I just replaced the rotors last year after more free pads than I can count. I am on my third free starter and 4th or 5th free alternator.

It is still going strong. Someday when the engine does wear out I can rebuild it for a grand. Good ol chevy small block.

I did screw up the ultimate cheap formula by putting a nice paint job on it. I just could not stand the door dings and scratches the original owner put on it in the 5 years he owned it. I also have it insured for more money than it cost new. The price of nice El Caminos is going up. It is my daily driver. I had it appraised by a professional.

I get more compliments on it than I do on my 85 911.

[K9Torro]

Yes, just borrow your friends car (and dont put any gas in it) that will keep the costs way down. lol

Todd

[Tim Walsh]

Related thread on a different forum. My answer is "buy an old honda, drive it til the wheels fall off, reinstall wheels, drive again"
Cost per Mile - RoadRaceAutoX

[Tim Walsh]

Originally Posted by krystar

honda fanboi's.

who in their right mind would pay $8k for a 91 honda crx...when kbb value is $1500

That's just dumb. I picked up my crx for 3K 70K ago(@ about 165ish). Gas, oil, and $20 worth of bushings is all it's needed so far. I put it into the shop for the first time 2 days ago for a..... timing belt that I didn't want to mess with. When the motor goes south, I'll just rebuild it or buy a new one for less than a grand.

[island911]

an old Mercedes 240d . . .~$2500 buy-in, tough beyond belief, and 30-something mpg (combined). There's a reason they were used as euro taxis for so long.

. . .I should note; a 240d is not going to beat a well set-up 944. ...unless the race is distance on one tank of fuel.

[cashflyer]

Note that some of the comparisons here are cost per year and others are cost per mile. That's important!!!

My 1976 Duster has cost me about $275 per year since I bought it - but it has cost me about $250 per mile!

My wife's Kia has cost me about $3500 per year, or about 14 cents per mile.

My last pickup cost me about $2400 per year, or about 23 cents per mile. (It was a big dually plus it bit me for some expensive work before I got rid of it.)

My current pickup has not been here long, so the numbers are skewed....
Currently it is costing me about $567 per month, or about 57 cents per mile. But it's paid for and those numbers will keep going down unless something breaks.

If I want to keep the cost numbers down, I buy a cheap, cosmetically-challenged vehicle that has good mechanicals. I paid $1700 for this pickup. It only has 86,000 miles on the odometer, but the bed is wrecked. I don't care about the dents. I do care that it is relatively low mileage and dirt cheap.