Tough choice (one car or two?)

I am almost finally in a financial position to buy a car to replace what I am currently driving. In another month or so I will be almost completely debt free with the exception of one small student loan (no credit cards, no nothing). I have been paying off debt so that I can get the car I want and enjoy it without worrying about the money element. However this presents a HUGE problem: Wants vs Needs, and how best to satisfy them both. Currently I drive a 1997 LHS that could seriously explode at any time. After doing research and estimating I have come to the conclusion that I can spend in the low 20s on vehicle(s) without being over stretched budget wise. The question is how to do it? Would I be better off buying a single, newer (like 1 or 2 year old) car that is both my fun AND daily driver? Or should I buy a car that is relatively "civil/pedestrian" AND then one car that is meant purely for pleasure and enjoyment? I know the obvious pros and cons, with 2 cars I have double the taxes/registration/possible problems, but I also have a backup in case of failure, and should I race one I dont have to worry about the wear and tear keeping me from getting to work. What should I do/get?

If I go for the one car option, the two immediately I've been impressed with are the 2011 V6 Mustang (300hp and 30mpg) and the Civic Si. I have driven both, and I could do well with either. Decently fun, good mpgs, and lots of aftermarket.

If I go for the two car option the DD would be something like a Nissan Altima, Mazda 3/6, Honda Civic, etc... The "fun" car would probably be something German (LOVE Porsches), or BMW, Merc, Audi, etc... and probably decently older. Not a Miata though because the only ones I fit comfortably in are the new ones (and are therefore out of budget), but suggestions would be nice here should I go this route.

I don't race anymore (haven't had the means) and the local track has shut down and while talks are underway to buy it and reopen it, who knows what will come of it. So it wouldn't be a dedicated track machine, however I very much enjoy "spirited" driving on back roads. I love the freedom of driving. I previously have owned a Trans Am, and a DSM. The DSM was heavily modified at one point, but was nothing but trouble just simply due to the nature of them (if you own one you know what I am talking about). I know how to wrench and don't mind doing it as long as it is for improvement/fun and not because I wont get to work on monday if I don't. What would you guys do in my situation? Is there a good compromise that I'm not thinking of?

I ask you guys because you guys seem to me like you would be able to empathize the most with my situation. I NEED something to get to work, I WANT something fun to drive. Of the people I've polled, the results have been pretty much a split. I like the idea of owning something to fix up and something out of the ordinary, but on the other hand, owning a fun car that I drive all the time appeals as well.

HELP!

I am DD'ing a Honda S2000. Decent mpg and a ton of fun to drive. You can find a good used one in your price range with no problem. The answer isn't always Miata!

two cars can be a blessing and a curse. Buying an appliance (doesn't have to be boring but reliable) to DD is a real plus. Things like civic's come to mind for me, and then a fun car to play with that can also (since you are not in to motorsports yet) be a dd on fun days or when ever. Gives you you the freedom to tackle a larger repair or modification at home and not be rushed to finish. If you like mustangs the fox body and SN chassis cars are still fairly plentiful and can get OK mileage as a play car. The obvious downside is you have to do the car budget in twos, tires brakes oil changes and repairs. The problem comes when you get up to the too many cars not enough time your number may vary mine are stuck at 7cars at last count. 3 of which run today three others will run with some work and one that is a virtual basket case.

I like having two or three to clutter up the driveway. It IS refreshing to shuffle them around and drive another while you fix or make your other one better with new, neat little toys.

Go two cars. Takes a lot of stress out of track days, diy repairs and mods, and gives you more options.

I have a '02 Jetta Wagon for a DD. With a hitch it serves many functions from dog hauler to junk hauler. As it's a turbo it is fun on back roads as well.

My "fun" car is a '75 Stingray. Nuff said.

Both can be had for under 20 large. Or any combination of DD and fun car.

I say two cars, but research the DD for maintenance costs, reliability, and fuel mileage. Only downside to the Jetta is 25-26 MPG.

As for the second car have price in mind and find the best example of whatever you like for that money. There really are a lot of choice sout there.

Or just get a C5 Vette and be done with it!

How well do you guys cope with driving something "average" most days of the week? Or does having something really fun for the weekends/track make up for it? I deffinately intend to mod it (that bug isn't going away any time soon) and if the track opens back up (its a drag track that occasionally had autox) I'd be back on it. I just don't want my "fun" car to end up being a project that never seems to be "fun". For instance I've seen plenty of things like Boxsters, Z3s, 944s, 3 series BMWs/M3s and Audis well within my crosshairs, that seem like they would be right up my alley but how to I make sure those cars aren't nothing but trouble (all higher mileage) and money pits? What do I say away from?

well, my question is where do you live? How are the roads and traffic by you? Here in New York, the roads suck and we get winter. So, short of a WRX, Mazdaspeed 3, or something similar, most prefer a second fun car because it is tough to DD something really sporty. When I was down in Virginia, you could getaway with a corvette or miata year round. Have you tried the new miatas? Much roomier and a better DD.

csbassplayer2003 wrote: How well do you guys cope with driving something "average" most days of the week?

If I had to deal with anything longer than a 20 minute commute, average would be good. If I had to deal with any sort of stop and go (say, more than 6 lights) I'd get an automatic. Bumper to bumper traffic quickly takes the joy out of a "fun" dd. Now, if all of your driving is on a highway/freeway, this makes things a lot easier.

Two cars is the way to go. My STi's plastic endtank on the rad has a pinhole leak (very common). How am I supposed to get the time to replace it on my DD? What happens if I need to pick up a misc. part while it is in pieces?

I live in the midwest (Southern Illinois). My commute is about 40 minutes or so, but mostly highway. Once I get into the town I work in it is pretty stop and go for the last 10 minutes or so of my commute. My DSM was a manual and so was my T/A so I've delt with stop and go in a stick shift before, it didn't bother me too much. I agree the new Miatas are roomier, but I would have a tough time making that or something like an S2000 as my only car (to a lesser extent a boxster because it has more room, but as my only car itd be pretty old to be in my price range). They would be great 2nd cars no doubt hence why I am exploring that as an option.

What's the issue with the LHS?

My vote's for 2 cars.

For around $20k, you should easily find a reliable DD and something fun for the off days. Years ago I had a '93 LT1 Firebird Formula as my only car. Living in New England meant buying cheap winter beaters, which usually didn't make it much past the winter.

I also never really got to pushing the car to it's limits for fear of damaging it, and never was able to seriously mod it because I couldn't afford the downtime.

I now have a house/family/etc...and DD a 2005 Subaru Outback XT 5spd. The Turbo and Stick make it fun at times, the suspension is pretty comfy on these absolutely horrid NE roads(I will move south someday!), has room for the family, and the AWD makes it livable in winter. It has the potential for pretty good power when modded, though I won't even entertain the thought for fear of blowing it up. I plan on a dedicated "fun car" for that down the road, one that can be modded/blown up/broken/whatever, because I won't have to rely on it to get to work.

Good luck to you,

-Sean

The issues with the LHS:

Lots of cosmetic issues (not all that important) such as falling off paint, exterior trim, torn seats, peeling window tint/weatherstripping etc...

Mechanical issues: Burns through water pumps every 40-50k miles and they take a long time to replace (we bought the lifetime warranty ones and we are getting our money's worth) leaving me stranded on occasion on my way to work. Dash panel works only about 10% of the time (this includes the odometer which stopped at 196k miles, but that was 2 years ago). No A/C (then again I haven't driven a car in the last 10 years with it), constant misfire issues/ feels unbalanced, power windows/locks only work about half the time. The main problem with all of that is with these mid 90s Chryslers is that everything takes so much effort to work on. Changing the spark plugs is even a PITA.

Congrats on the no debt. This is a major acomplishment and I do not want it to go unnoticed!
Of course, your question seems to be, "now that I have fixed that mess, help me create the mess again."
Is the spending of $20k on a car really the best answer?
Will you be financing the car purchase?
How much down?
Is it possible to wait just a little longer to have more down and or have the ability to pay cash, outright.
Without knowing the answers to all above my recomendation would be to buy one car with the intention of having two cars. That is, buy one reasonably priced car (what ever reasonable is to you.) Get that car paid off, keep it, and at that time get another reasonably priced car as your second car.

Again, my number one advise is to not loose that freedom and control that you have with no debt and forgo the freedom for the demands that a big car loan can bring. Sure, my advise is boring but let me remind you of how peaceful it is to not have the debt monkey on your back.

More time does have more down payment however I have been working on my debt for the better part of 3 years. Yes a car would be "new debt" but it isn't necissarily a bad thing. I will finally have something nice to show for my work. I could have purchased a long time ago, but like many people do now adays I didn't want over do it. Most of the debt I had previously was student loans and credit cards that accumulated as a result of some bad luck/financial emergency. I would be financing it yes, however at my income level buying it outright with cash is a longshot without waiting a while longer, and I am unsure how much longer my current car will last. I plan on putting something to the tune of 5k down just so I have payments that are so low they won't seem burdensome and I can enjoy the car much more. I already have a decent amount saved by putting tax returns straight into savings for this reason and in case I have to put a down payment in an emergency situation because my current vehicle died. The reason I went for this level is that I was comfortably paying off debt at that amount and doing just fine having money left over so I didn't have to be a hermit, therefore I know I can afford that much comfortably.

Good answers. It seems you have it thought through but I notice that you have $5k ready to go. I still think I will recommend to buy as close to that as possible. I am not sure what you are looking for in a car but here might be a good choice in your area.
http://carbondale.craigslist.org/cto/2556038967.html
2004 Celica w/ 112k miles asking $6.5k. Offer closer to your $5k available.
The Celica should make for a great commuter with all the economy and reliability of a Corolla but wrapped in a more fun package that even includes a usesfull hatchback. Keep this car as the less interesting and reliable car. Though, in the first months of getting it, this car will be far more enjoyable than a LHS and far more interesting. If you have managed to keep a LHS running into the 200k mile range you are certaily equiped to keep a Celica running as far or farther. Next year at this time as the excitement of the Celica wears off buy into the sportier car maybe even something to race.

Let me clarify: I don't have the 5k saved yet, I just do not intend to shop/buy anything until I have the rest of it saved up. I have some saved, just not up to what I want yet.

I would go the two car route, but I'd avoid financing the toy. If something went wrong on track, it would suck to continue making payments on a car that's smashed up. I would say find a track toy/project in the 3-3.5k range, and use the 1.5-2k as the down payment on a comfortable, financed daily driver. You can easily get a nice nearly new 30+ MPG type car with some nice options like AC and such for a reasonable payment.

Given the fact that your income is so tight, I agree with JRW. Budget 10-15k for something nearly new or new with not too much in maintenance (civic si, kia koup, scion tc, honda fit, maybe a mazda 2). Use the 5k for that and enjoy low payments. Save up 2-3k and then you can start shopping for a cheap fun car. Remember to check insurance and other related costs before you dive in. Remember, a nimble car with a stick can always be a bit of fun on a back road.

Check the impound yards and get a "hooptie" save your cash , see what happens in six months quote ""Currently I drive a 1997 LHS that could seriously explode at any time "" please start an in car cam

I would recommend two cars. Fun German car plus whatever else you can find that gets 30 mpg.

I'd get the DD first and try autocrossing the LHS. Hey, why not?

I usually drive more than two a day

being that i'm married I tend to have a spare care around anyway... makes it nice when you have to work on a car... you can get to and from the parts store for that thing you didn't know about but HAVE to have to finish the job... seems to happen to about everything I start lol... granted our cars combined are worth maybe 3k lol.

i'd say it matters even more based on what kind of car guy you are... if you want a project that you want to build then you def want a DD and the project... if you just want a fun DD that won't have more then basic bolt ons then you can get away with a pretty nice fun DD.

Hoop wrote: What's the issue with the LHS?

When I was in college (several years ago) I was driving my parents LHS one week because my DSM was down (waiting for parts). They were trying to sell the car and I figured parking it on campus with a for sale sign might help as it seems everyone who knows what an LHS is didnt want one again and anybody who didnt know wasnt looking for them. "Whats an LHS?"

Well it decided to blow a head gasket that week... on my way to a job interview. Before that it regularly went through tie rod ends, steering rack bushings, the A/C required regular $500 deposits to even think about blowing cold air.... The transmission felt like it didnt want to live much longer. This was on a car that was reasonably well maintained and only had 110,000 miles on it.

I ended up selling it for them for $700... a car they bought used 10 years earlier for nearly $14000...

I would go the 2 car route... I recently learned my lesson about track driving my daily driver. Spun a rod bearing on my Saabaru. Its nice to have a clean reliable daily driver when the track toy is broken.