Purchasing a used vehicle by 4/7/22 (Firm Deadline) Need advisement
Hi, I got 142000 miles out of my 2003 Cavalier, but now it is time to purchase a used car to replace it. Pause for "Taps". Reliability and longevity is my primary objective: nothing fancy just a rideable, reliable sedan. i only drive 3K-4k miles annually, mostly city commuting and general transportation. I will give you my brief financial background, and my desired purchase Plan(s). I definitely welcome advisement/ opinions.
-7000$ bank account
-30000$ annual gross income
-no debt
-744 experian fico 8
-757 Transunion fico 8
-My realistic budget is a 300$/ month payment, with a max of 2000$ down. I think I might be able to safely increase this if I finance under 10K
Plan A (my preferred plan): I will apply for a 12K to 18K loan for a used Toyota or Honda sedan/ compact (there reliabilty and longevity reputation is unmistakable). The problem is that everybody knows this, plus it is a bad buyers market. Maybe I might consider plan B or C below?
Plan B Purchase Toyota or Honda for 5K to 10K $. Ride it as long as I can, then get another car when the market gets better.
Plan C As you know the even used Hondas and Toyotas are so much more expensive than Comparable cars of makes like Chevy or Ford. I am suprised to find out how much!!! I did well with my Cavalier so maybe a ChevY??
Anyway I am asking your judgement about what you think is my best option. I have no interest by the way in buying from a private owner as I consider it to risky, and buying a cheap new car such as a Nissan Versa has been suggested, but I think i can not afford that realistically. Please advise.
Stay away from late model GM products. They have become much worse in the 19-20 years since your Cavalier was manufactured. (If that's been good for 142K miles that is nothing compared to how much you can get out of a well-maintained Toyota or Honda. There's a reason why they are more expensive on the used market.)
Even Toyota and Honda have models that should be avoided due to problems like oil burning and weak transmissions. Research any vehicle you're thinking of purchasing for frequent trouble areas and have it examined by a good mechanic. It is best to avoid dealers if possible. Don't believe anything that any seller tells you about the car, verify everything.
Alternatives, well, according to Scotty late-model Mazdas (2015+) are pretty good cars.
So $5k to $10k is in the lower price range for a used car (particularly Honda or Toyota) in this market and it would be hard finding something decent in this price range; not impossible but very hard. The reason to avoid dealerships is that you will have to pay more for the same car if you buy from dealership vs. from private party.
With $12k to $18k you have better luck at finding something decent specially if you go the private party route. Based on what car you decide on you can find a lot of videos from Scotty talking about which model/years to buy and which to avoid. But if you want something that will last you avoid Chevy or Ford; a good Honda or Toyota or even Mazda will last you a lot longer and trouble free.
Plan A (my preferred plan): I will apply for a 12K to 18K loan
Assuming you live in the USA, you may just be better off financing a brand new base model Honda Civic, Toyota Corolla or Mazda 3, by slightly increasing your budget.
What are you options, realistically, in your local area?
