So what to replace my old trusty beater with? There are more choices now than ever before in the history of the automobile. Korean, Japanese, German, American… there is something for everyone. When I first started out, I completely fooled myself into thinking what would be practical. Used BMW M3s, Audi S4s, Cadillac CTS-Vs- these cars were doable in the upper-20k and lower 30k range. Thanks to being weighed down by a big mortgage and house-related bills, I don’t have tens of thousands lying around for either an all-out purchase or hefty down payment. At the same time, I don’t want to spend every penny I earn and live paycheck to paycheck, either. Those days are well behind me. I’ve learned my lesson.
This process has been another lesson, in what you should do vs. what you can do. Sure, I can afford a $500-700 a month car payment. Should I? Of course not! Once the math was done, with a trivial down payment those cars I listed above become massive monthly obligations. That just isn’t smart.
So I began to look around with modified expectations in mind. The following list is what I ultimately came up with:
- Year-round practicality
- 4 door
- Manual transmission
- Not FWD
- Not 4 cylinder (if it is, needs a turbo)
- 20+ highway MPG
- Can be tracked occasionally (overall performance makes it worthy)
- Positive reviews from press and enthusiasts alike
- 2006+ model
- Sticker of $20k or less
What fit this like a glove? The Subaru Legacy GT. A great looking grown-up car that is comfortable, fun, and highly rated. For the last several months, I have been scouring the car classifieds. I came across models here and there, but there was always something nipping at my mind. I just couldn’t bring myself to pull the trigger on anything. In the end, it all came down to car payments. I simply wasn’t willing to kiss $500 a month with a 4 or 5 year note. Financing $20k at 7% (the average going rate for a used car loan) over 4 years is around $480 a month. Sorry, but I just can’t bring myself to pay that kind of money for a car. When I first took over the payments for my 2000 Sentra, I was paying $328 a month. To me, around $300 is reasonable.
So I adjusted my expectations a little further. What could I get for $5k down the food chain that would make me happy? Now you’re talking about higher miles and older models. By moving the price limit to the $15k neighborhood, the math finally started to make a bit more sense. If I can get $2000 for my Sentra on the open market, financing a total of $13k over 4 years means payments of about $300 a month. So I find a car stickered in the $15k range, talk the price down closer to $14k, throw $2k down on top of that and then you’re talking $275 a month! Very reasonable. A Legacy in this range has higher miles. For example, ’05 or ’06 models, out of warranty, are averaging about 60-70k miles.
Enter the Mazdaspeed3. A car that stickered new for $10k less than a comparable Legacy GT. A very different car to be sure, but certainly a huge step up from what I have now. My above listed criteria are met by the ‘Speed3 in every regard other than the fact that it’s FWD. It’s fast, has gotten excellent reviews, and is based on a platform that I have a little experience with. Back in February, I spent time driving around in a base model 3 sedan. I thought it was a pretty nice car. The handling and performance was nothing special, but it felt solid to me. It made a good impression on me. With fun behind the wheel in mind, a ‘Speed3 makes a lot of sense. Take the car that I enjoyed driving back in February, give it a turbo and performance-oriented tweaks like a better suspension- now you’re talking!
I pulled my most recent credit report today and it’s higher than its ever been in my whole life. Past mistakes are finally gone! With that behind me, I can look forward. Tonight I’ll be taking the ‘Speed3 for a spin. If I like what I feel and they’re willing to deal, I may just have my first new car, ever.
