Spending $300 - $400 dollars a month with the idea that you wont have surprises in terms of your 'brand new' transportation is a fallacy. I've seen new cars bac

Spending $300 - $400 dollars a month with the idea that you wont have surprises in terms of your 'brand new' transportation is a fallacy. I've seen new cars back in the dealership often times more frequently than used cars with 100k on the clock. Although you may not have to 'pay' for the repairs it is still the inconvenience that you'll have associated with a rental car and the time lost. As another commenter pointed out, these guys posses a skill, it's not just about free time. And the skill can be acquired or bought just like most other skills. Some basic education on how to buy a used car and what to look for can save you big $$$, I wrote about how I pick up sub $5000 cars and why financially it almost never makes sense to buy a new car here: http://www.tropicalmba.com/entrepreneurmobile/ http://www.tropicalmba.com/entrepreneurmobile/ Most cars have a sweet spot in terms of maintenance cost and depreciation. You don't have to go down to the $5000 if you aren't comfortable there. Problem is however that comfort for most uneducated used car buyers is relative and mostly not related to the actual condition of the vehicle. Most people think newer is more reliable. While in many instances that can be the case, IMO it certainly doesn't justify the price that comes with it. For many buyers a good window to consider is 2-6 years old. The vehicle will still be going through it's depreciation cycle (so you will be paying for that) but will generally have somewhere between 20-100k miles on it. In most modern vehicles you probably won't have to repair anything major during a 2-4 year ownership period depending on where your car is in the cycle. It's a good idea to have an ownership timeline for your purchase. I personally like to drive something different every year or two. I know most people like to set it and forget it. Either way, having a plan for ownership length is an important part of the equation and can help you to factor depreciation and mitigating risk. Finally. The Japanese and Germans still build the best vehicles unless you want a truck. It's very unpatriotic but save yourself the headache and don't buy an american car. It's really easy to try and argue this one until you try and remember the last time you saw a mid- nineties Ford Taurus on the road. Same can't be said for a Civic.. The resale prices will corroborate here as well, you may be tempted to jump into a $6000 2008 Chevy Malibu... it's a trap! Poor build quality and low resale potential make these very bad choices.