Cars - What do the rest of you drive?

[Amogh]

I've been a motorbike guy most of my driving-age life (not here with all this snow). Looking to buy a car now.

Did some googling and I'm surprised that there isn't a single post relevant to buying a car in grad school. Tons for undergrads and new grads though but I don't feel like we are well represented by either group.

SO lets make one here.

 

What do you guys and girls look for in a car (in grad school of course)?

How much did you spend (or are considering spending/ think you can take on comfortably)?

anything else you think is relevant.

[TakeruK]

My first car (that I officially owned) was my family's old "second car" that my parents gave to me after I finished undergrad and I used it to move me and my SO across the country for my MSc program. I didn't really "look for anything" since I was happy to be gifted a car! But I really liked that it was something I was familiar with and used to driving, especially since our vacation/move-across-country was a 6000km trip!

 

We sold that first car before moving to California for my PhD program. We went the first year without a car because my single grad student income didn't really pay all the bills for 2 people, and it takes a lot of paperwork and time for my wife to be able to get permission to work (as a Canadian) as well as find something suitable for her skills and experience. 

 

So, last year, we bought a (very lightly) used car (2012 Honda Civic--it was 1.5 years old and only had 8000 miles on it). We had a lot of time without a car to think about what we really wanted to get in a car and in the end, we decided to invest in a new-ish car rather than buy a ~10 year old car for just a few thousand dollars. Here are things we looked for in our car shopping:

 

1. A car model with a reputation for a long life and easily sourced parts. A Honda Civic or similar is great for this.

2. A used car, but is only a year or two old. Cars depreciate a lot as soon as they are driven off the lot, so it makes sense to get an "almost-new" car. 

3. We tried to get as much information about the car's prior history--better to not get an old rental car. Our used car history said that it was a "company car" and given that it only got 8000 miles on 1.5 years, we figured that it's prior use was pretty low. 

4. Car still under original warranty. Most major dealers have 3 or 5 year warranties and add on an extra year or two when you buy a certified used car from the dealer.

5. It wasn't a necessity but it was really nice that our Civic has a digital display (speedometer, odometer etc.). With one easy button, we can convert all the numbers from metric to US units This is important so that we can easily take this car home to Canada one day and not have to always squint to read the smaller metric numbers or do mental math!

 

These above criteria were important to us as a long term investment. We expect to use this car for the next 10-15 years so to us, the increased price of buying a newish car was worth this investment. Thus, we were planning on keeping this car way beyond grad school. I could totally see another scenario where we might have just wanted a car to last us for a few years and push "investing in a car" down the road. But we figure that we will probably remain on this continent for the next while and we plan on starting a family in the next few years so a car would be essential. Since we have the income now (with both of us working) to pay off a car, we figured this was a good time to invest in one instead of trying to pay off a lot more bills later on in life along with the car.

 

In terms of cost, we paid around $17,000 last year for the car. We made a decent downpayment with some savings and took out a really good car loan (2% per annum interest for 5 years) from my school's credit union. We're making sacrifices in other places to pay off the car in the next couple of years. However, we figure that owning a car generally costs around $4000 to $5000 per year when you factor in all costs (especially insurance). So if we do get to use this car for the next 10-15 years, if we split the cost of the vehicle across this time, it's another $1000 or so per year to operating costs. 

Basically, we thought about buying a newish car now as making a commitment to pay $5000-$6000 per year for the next 15 ish years and in return, we get the benefits of being able to drive where we need to. Whether or not this kind of investment/expense is something each student can take on comfortably really depends on each person's income and personal situation. My field pays its students well and having two incomes really help. Random internet searching says that we should not spend more than 20% of our take home pay on cars, so perhaps that's a good guideline for what you can afford. For perspective, our car expense is probably our third biggest item in our budget (first is rent and second is health/medical/dental costs).

 

Finally, we generally choose the most basic package of options that come with the car, since things like leather seats are not really worth the extra price (and not really something we can afford to add). In addition to what I wrote above, our main priorities were a reliable car that is easy to maintain. We are not "car people" that really love our cars, I think of it as a tool and an investment! The only add-on that we usually picked was automatic drive instead of stick since neither of us knows how to drive stick. But if you do, that can save you about $1000 or so. 

 

That was a lot of random stuff and hope it was what you were looking for. Feel free to ask more specific questions too, either here or via PM (if it's more personal). 

[spectastic]

I have a 02 honda civic. It's nice.. but I'm the opposite . i've been driving cars and commuting on my bike, but now i want to get a motorcycle as my primary mode of transportation, and only use my car for moving, grocery shopping or something that can't be done on a motorcycle. I figure if I limit the use of my car, I can justify getting a high deductible insurance, or even go off of a bare minimum with liability and collision. I would care a lot less if my motorcycle gets damaged or dropped, because I'm only going to spend like 2-3000 on a used 650cc twin.

 

why come you no ride motorcycles anymore?

 

 

also what's your opinion on salvage bikes, my main concerns are their reliability and coincidentally implication on insurance coverage options

Edited June 22, 2014 by spectastic

[Monochrome Spring]

I just got a 2012 Honda Fit Sport with about 30k miles on it. It's small enough to park easily and get great gas mileage, but it also has a ton of back storage space. I moved almost everything I own across the country in the sub-compact.

 

When I picked out a car, my requirements were: hatchback, good storage, good gas mileage, few miles on a used car, and comfortable. General basic car stuff. I paid just under $14,000 for my Fit, including tax, registration, etc.; and I was fortunate enough that my grandpa payed for it as a gift for graduating and to help me get around in a new state for my PhD program.

[TakeruK]

I figure if I limit the use of my car, I can justify getting a high deductible insurance, or even go off of a bare minimum with liability and collision. 

 

This is a good money saving tip too. If your car is rated for "daily commute", the rates will be much higher than if you rate it only for "leisure" (i.e. use on weekends only). My spouse works and commutes with the car so this is not an option for us (I bike to work though). Still, we don't use our car that much so we are able to get a slightly discounted rate by limiting our annual miles to 7.5k per year. So far, even with a couple of road trips, we are only at 6.5k miles and it's less than 1 month left in our insurance year.

 

Also, we save money on our insurance by taking out three policies instead of one: auto insurance, renters insurance and personal liability umbrella policy. Having more policies mean a greater multi-line discount on all our policies. Also, most of our liability is covered from the umbrella policy--we take out minimal liability policies on auto and rental because our umbrella policy will cover it, which saves us some money too.

[harrisonfjord]

I honestly went about the car buying process all wrong but I think TakeruK is spot on with the advice.

 

I drive a Hyundai Accent and it's great gas mileage wise. I purchased it with about 50,000 miles on it for $3600 cash. The insurance is a little expensive, but I can't avoid that. I use it daily for my commute to work and school. Since I will be 25 this year, my insurance will go down. Biking and public transportation are not very cost effective options where I live, public transportation is almost non-existent and biking 5 miles in 90 degree heat does not make sense. 

 

I would say that buying a car a little bit below your budget might be helpful, especially if you can put some money away. Inevitably I have car issues and emergencies at the most inconvenient times (i.e. I just paid $300 for a conference and my tire blows out). I also like not having a car payment, but I realize that is not a plausible option for most. My car is a bit of a clunker and is old, but it's lasted me over 5 years with hardly any real issues.

 

I also think it's important to keep up with routine maintenance. Getting your oil changed regularly, etc. definitely makes a big difference in the longevity of your car. 

Edited June 22, 2014 by harrisonfjord

[spectastic]

honestly, having a tire blowout on you is not inevitable. tires are perishable parts... I try to check my pressure and threads every month or every other month

[harrisonfjord]

I never said having a tire blowout is inevitable. I said that my "car emergencies" inevitably happen at the worst times, like for instance after I pay $300 to attend a conference, pay for a plane ticket, drain my bank account, and then have to get something replaced.

 

The whole point is to say try to have a fall back plan in case something happens. No car problems are theoretically inevitable. You have a moving machine that requires routine maintenance and parts have to be replaced after they wear out. I think you missed the point of what I posted.

Edited June 22, 2014 by harrisonfjord

[bhr]

06 Equinox that I bought in 07 with about 25k on it. I'm still only at about 75k, which isn't bad at all. Gas mileage isn't the best, at about 19/20 mpg, but it's got a lot of room for moving stuff, fits five incredibly comfortably, and I've got a tow hitch installed which will save some moving cost.

[spectastic]

I never said having a tire blowout is inevitable. I said that my "car emergencies" inevitably happen at the worst times, like for instance after I pay $300 to attend a conference, pay for a plane ticket, drain my bank account, and then have to get something replaced.

 

The whole point is to say try to have a fall back plan in case something happens. No car problems are theoretically inevitable. You have a moving machine that requires routine maintenance and parts have to be replaced after they wear out. I think you missed the point of what I posted.

like what?

[harrisonfjord]

A starter and my battery. Does it really matter all that much? 

[bhr]

like what?

Don't be intentionally difficult. Car parts fail or need to be replaced all the time. New cars come with a warranty, but, since most of us are going to be in school for years, it makes perfect sense to have an emergency fund for car repairs, tire replacements, ect.

[spectastic]

some of us have different definitions for "emergencies" I thought you meant crashing a car into a curb and needing a whole new suspension, in which case emergency fund makes sense. batteries need to be replaced about once every blue moon, spark plugs cost ilke $20. most other car problems are due to negligence more than anything else. But I agree having a backup is a good idea. that's partially why I want a motorcycle, so that if one doesn't work, the other one can take its place.

[Guest Gnome Chomsky]

some of us have different definitions for "emergencies" I thought you meant crashing a car into a curb and needing a whole new suspension, in which case emergency fund makes sense. batteries need to be replaced about once every blue moon, spark plugs cost ilke $20. most other car problems are due to negligence more than anything else. But I agree having a backup is a good idea. that's partially why I want a motorcycle, so that if one doesn't work, the other one can take its place.

I've been driving used pieces of crap since I was in high school. I buy them for like $500 from some old lady, put about $700 into it, then minor maintenance here and there, and they've lasted me forever. If you check on your tires, make sure they're not showing threads, and keep them inflated, you shouldn't have any unexpected blow outs. And, like you said, other things like replacing a light or a fuse cost a few bucks. You don't need $300 a month for "just in case." 

[spectastic]

wow.. I was just browsing some craigslist ads in houston, and a lot of the cars they're selling are cheaper than the motorcycle listings... but I bet a lot of these listings are also scams.

 

personally, I'd go to craigslist, and buy one of those cheap 10 year old cars (maybe not one of the $500 ones that require a shit ton of work to restore), and pay a mechanic $60-70/hr or whatever they charge to inspect the vehicle. I would avoid dealerships and financing. pay with cash and everybody wins. 

[rising_star]

I bought my car in a private sale from someone that sold cars for a dealership. The car had always been maintained at the dealership and came with a full set of maintenance records, which was nice. I bought it with part of a subsidized student loan. When I bought it, the car was 5.5 years old and had 53K miles on it. I still have the car now, more than 6 years later and it's been a great car. My insurance is low because it's bundled with some other stuff and due to a good student discount. Now that my car is older, I don't have comprehensive coverage on it, which also lowers insurance. Average annual maintenance costs have varied because I tend to do long cross-country road trips but not much everyday driving. Consequently, I end up getting some sort of large preventative thing done nearly every summer (one year was the timing belt and water pump, another was new tires, another was new belts and hoses plus some other stuff), but I'd say that I spend only a few hundred a year outside of these major things.

 

As for the tire blowouts above, my friend and I went on a road trip a few months ago and experienced one. He hit a pothole in the road or something and it blew out the tire in a way that wasn't even repairable. It was his car, not mine, and he ended up having to buy a new tire. Luckily, there was a tire shop within 3 blocks of where this happened, so we put the spare on, went there, then waited about an hour (they inspected the old tire first before my friend picked out the new one and they installed it). This car, including the tires, was inspected before we went on the trip. While on this trip, I met with another friend for a smoothie. Friend 2 had put four new tires on his car to meet inspection, drove out of town to see his girlfriend, and hit a rough patch of road at night. Friend 2's car ended up with two blown tires. So, he literally put 6 new tires on his car in a month. Blowouts can and do happen even if you inspect the tread and keep your tires inflated so I'm not sure why people are suggesting otherwise above.

[spectastic]

how the hell does a guy get 2 blowouts in one trip? was he driving through a minefield?

 

 

 

by the way, as a money saving tip, for the amount of money they charge for changing out tires, you might as well buy a couple of levers and do it yourself. for me, tires cost around $60 each, but at least $100 fully serviced. just use a proprietary tire lever, not a crowbar or something that'll chip the rim, like one of those jackasses on youtube.

 

also, you can probably pump it back up with a regular bike tire pump, although it's probably going to take around 500 reps. (I'm wondering if anyone has actually tried this)... heck it might even save you time to pump it up in the driveway than to look for air service at a gas station.

Edited June 23, 2014 by spectastic

[Lifesaver]

Unless you know how to diagnose and fix a car on your own, stay away from the $500 craigslist specials.

I bought two cars (well, SUVs) last year. In March of 2013 I bought a 2013 Jeep Wrangler Sport because my 2006 Jeep Grand Cherokee was having transmission issues and I didn't want to spend a couple of grand replacing a transmission in a 7 year old vehicle with 130,000 miles. In September of 2013, I decided I wanted something bigger that I originally couldn't afford because my trade wasn't worth a whole lot. So, I traded it in for a 2014 Jeep Wrangler Unlimited Sport and increased my monthly payments by only $20, without a down payment. I couldn't be happier. Unless of course someone offered to make my payments for me. It's got a 100,000 mile warranty, free oil changes for a year, roadside assistance, I can trailer with it, go offroad, make it a convertible, and it's just awesome.

[DeafAudi]

I'm currently driving a 2003 Ford Focus and I can't wait to be rid of that POS this Fall, lol. I'll be using public transit in school. 

[Nautiloid]

I bought my first car, a 2007 Corolla with about 50k on it, last year to commute for work. Found it through craigslist, but it did take a long time to find a good car at the right price that way. I didn't have much of a choice though since I didn't have financial help from parents and didn't want to take out a loan.  

 

I'm really looking forward to not having to drive to school every day though. I'll have the option of a 20 minute bus ride over a 10 minute drive which will be nice considering I'm used to a 45 minute drive each way. I'll probably keep my car though for weekly trips for groceries and to easily visit home for holidays.   

[rising_star]

how the hell does a guy get 2 blowouts in one trip? was he driving through a minefield?

I assume you're referring to my earlier post. Do you mean Friend 2's two blowouts? It was both tires on the passenger's side of the vehicle. The polar vortex jacked up the roads pretty bad, leaving them with lots of potholes. At night, in the dark and when there's snow/ice on the road, those are more difficult to see. He basically hit a couple giant holes with one side of his vehicle and it blew out the tires on that side. Is it unfortunate? Absolutely. No one expects to get less than a month of use out of brand new tires! Or, as he put it, driving in Cleveland can be hazardous.

 

Personally, part of the reason I have tires installed at a shop is because I can purchase a warranty/insurance (I can't remember exactly what they call it) on the tire such that the shop covers any kind of problems I have. It's definitely saved me money because I've twice damaged tires by getting a puncture in the sidewall, which is not worth repairing. 

[Maleficent999]

I bought a 2012 honda civic new back in 2012 (duh). I was able to put a lot down so my payment is pretty small for a car payment. It'll be paid off the summer after my second year in grad school. I wanted a honda civic because they're known to last for years if you take care of them, it gets great mileage, and maintenance is really cheap compared to other brands. I didn't buy it with grad school in mind but it is a practical car so I'm happy with it.

[spectastic]

that's the first time I've heard of polar vortex causing potholes. I guess another good reason to stay out of the north.

 

I'm not sure what you were doing to be getting punctures on the sidewalls, but it's a good idea to toss it out instead of repairing it. using a tire with a compromised sidewall is asking for trouble.

 

 

no, I take that back. if it's a small puncture, I would consider patching it, provided the patch is really good - it's only 35 psi. if it's a big puncture, probably not

Edited June 23, 2014 by spectastic

[Nautiloid]

that's the first time I've heard of polar vortex causing potholes. I guess another good reason to stay out of the north.

 

 

Pretty much any state where it gets cold enough for water to freeze on roads, potholes are a major problem. You should see the Missouri roads right now. There are more shredded tires on the highways than roadkill. 

[TakeruK]

I bought a 2012 honda civic new back in 2012 (duh). I was able to put a lot down so my payment is pretty small for a car payment. It'll be paid off the summer after my second year in grad school. I wanted a honda civic because they're known to last for years if you take care of them, it gets great mileage, and maintenance is really cheap compared to other brands. I didn't buy it with grad school in mind but it is a practical car so I'm happy with it.

 

Our 2012 civic is blue and is named George! As I said above, we got it used in 2013 but the original owner actually bought it in 2011!