"Investing" in an econbox

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dlundblad

dlundblad

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Cars are not an investment unless you were the original owner of a 1965 Shelby Cobra, but hear me out..
smile.gif


Say a person was to spend about $250 per month (or $3k per year) in fuel. This is about 450 miles per week, 15 MPG and $2.50 gas. None of these variables are constant and are all rough estimates.. Might be times when more/ less miles are driven. MPG and price of fuel will vary too.

Does it make sense to buy roughly a $5k econbox (and keep the current 15 MPG DD) that is capable of achieving at least 30 MPG? Aside from maintenance, plates and insurance, I am estimating the car would pay for itself in fuel in only 3 years of use.

Thoughts?
 
I think it can pay for itself, but 15k a year isn't much, i drive 30k+
Plus many eco boxes with a small 4 cyl and a stick can get up to 40 mpg, and a nice one can be had for $5 grand or even less if willing to drive a bit to find favorite one.
But might not get ROI until year 4, maybe less if gas goes back up or end up putting on more miles.
 
I have put 52K miles on my Focus that would have otherwise gone on my Cherokee.

At the time I got the Focus, the Cherokee was getting 17 MPG. The focus has a "RAFE" of 34. I'm figureing average cost of $3.5 a gallon

50K miles @ 17MPG = $10294
50K miles @ 34MPG = $5147

So there's a $5K savings on fuel so far. Over 4 years.
 
I hate to be negative, but I imagine gas will be going back up any time now. When its pushing $4 per gallon, it'll be much easier to justify purchasing a fuel sipper IMO.

A manual gearbox would be preferred, but they are pretty hard to find here unless I go to the dealer and build a base model Focus, Accent etc. Does Toyota and Honda even make a manual econbox anymore?
 
Originally Posted By: dlundblad

Does it make sense to buy roughly a $5k econbox (and keep the current 15 MPG DD) that is capable of achieving at least 30 MPG? Aside from maintenance, plates and insurance, I am estimating the car would pay for itself in fuel in only 3 years of use.

Thoughts?

I wonder how long I could drive a car without insurance or registration or maintenance?
wink.gif
Gas is still the main cost, but the others add up, even tires up here as now you'd need another decent set of snows.

I have the long commute in our house, so I get the fuel efficient car, and my wife gets the guzzler. I don't think the 3 car plan really pays unless both people have very long commutes and then want a gas hog for towing on the weekends.
We are probably going to get a 18-20mpg SUV when the Tracker dies, but my wife doesn't go far enough to bother with another car for her.
 
Ultimately that is what my Jeep would be for. Realistically its probably worth 2-2.5k on trade anyways. I would also be using in the winter months when nothing but a 4x4 can make it down the road. I am just speculating at the moment and not going to pull the trigger on anything.

I have no insurance or plate quotes so I just left those out for the time being. I am hoping the maintenance would be next to nothing within those 3 years aside from the oil changes and perhaps a set of tires.

Cant really justify moving at the moment either. Still live at home and pay no rent and still in school too.
 
Originally Posted By: dlundblad
I hate to be negative, but I imagine gas will be going back up any time now. When its pushing $4 per gallon, it'll be much easier to justify purchasing a fuel sipper IMO.

A manual gearbox would be preferred, but they are pretty hard to find here unless I go to the dealer and build a base model Focus, Accent etc. Does Toyota and Honda even make a manual econbox anymore?


Toyota Corolla and the Honda Civic are still available with a stick. My wife prefers sticks and bought a new 2015 Audi A4 with one.
 
Do you live in a snow belt? I don't, so I've never needed 4wd on a public road to get to work, snow tires and fwd have always pulled through. The odd time we get freezing rain but if its bad enough to keep me home, everything is shut down anyways.
If you've got 5k plus 2.5k for the Jeep, you can get something pretty decent that's good on gas. Subaru wagon if you must have awd, but I'd try to keep the car as cheap to run as possible as a student. Keep your debt as low as you can and you can get out of a rental and into your own place years sooner.
 
Originally Posted By: dlundblad
I hate to be negative, but I imagine gas will be going back up any time now. When its pushing $4 per gallon, it'll be much easier to justify purchasing a fuel sipper IMO.

A manual gearbox would be preferred, but they are pretty hard to find here unless I go to the dealer and build a base model Focus, Accent etc. Does Toyota and Honda even make a manual econbox anymore?


They all do...
 
Originally Posted By: dlundblad
I hate to be negative, but I imagine gas will be going back up any time now. When its pushing $4 per gallon, it'll be much easier to justify purchasing a fuel sipper IMO.

A manual gearbox would be preferred, but they are pretty hard to find here unless I go to the dealer and build a base model Focus, Accent etc. Does Toyota and Honda even make a manual econbox anymore?


I know for a fact that Honda still makes them in the Accord, Civic and Fit. I can't comment on other models as I am not sure.
 
Originally Posted By: dlundblad
Thoughts?


It works quite well if you understand the costs, and get an "econobox" that is not only simple to maintain, but cheap to insure as well as fuel thrifty. Factor in the residual value if you have a set amount of time that you're planning to drive it (such as back and forth to school for the next 4 years).

It's why I drove a 2006 Elantra as a daily driver while using my pickup only when needed. I purchased it in 2009, sold it in 2014 for almost as much as I paid for it, and insurance/maintenance was extremely cheap. The fuel savings/residual value more than made up for the original price of the car plus maintenance and insurance over the time that I owned it. To top it off, it kept the pickup low mileage, so when I sold it last year I was able to get a slightly higher price than I would if all the miles put on the Elantra were on the pickup.
 
If you want a fuel sipping commuter, now would be the time to buy one.
People have very short attention spans, and thirsty trucks for personal DD use are moving at a rate and at prices not seen since before 2008.
Your plan does make sense, especially if you buy something with high depreciation used, like a Kia/Hyundai or even a Saturn.
I'd personally lean toward an older "real" Saturn. Cheap to buy, cheap to fix and will run forever on very little fuel.
There's even a thread here showing you how to fix the classic oil use problem.
If you wait until fuel prices exceed three bucks again, as they will, the deals will all be gone.
 
Originally Posted By: HerrStig
Do those boxes come with a hair shirt? Life's too short.....


for a guy who still lives at home and is still in school?
 
Originally Posted By: HerrStig
Do those boxes come with a hair shirt? Life's too short.....


For something that is good on gas?

The goal is to still keep the "fun" vehicle too.
 
Originally Posted By: dlundblad
Originally Posted By: HerrStig
Do those boxes come with a hair shirt? Life's too short.....


For something that is good on gas?

The goal is to still keep the "fun" vehicle too.


Which is why you want CVT.
 
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