Over the last seven years, I’ve purchased two used cars, one from a Pennsylvania auto auction (a mechanic friend bought it for us) and one from a private seller. I paid $5,000 for the first (a ’95 Mercury Villager). It hung in there for four years with virtually no repairs. I loved that experience, because we had just bought a house and were making a big leap in housing costs.  

It was nice to have no monthly auto loan or lease payment, no concerns when the kids spilled a soda on the floor, and cheap insurance (well, cheap for New Jersey anyway). The state has some of the highest premiums on the country. Because the car was so cheap, we save by eliminating collision coverage. (It wouldn’t be worth repairing if we banged it into a tree.)  

I paid $3,000 for the second car (a ’96 Town and Country minivan), but the aggravation factor has been high – like the time the fan belt flew off in Michigan City, Indiana on a cross-country trip to Chicago. (My husband, a New Yorker, just kept saying, “Are you sure we aren’t in Michigan? Why would they call it Michigan City if we’re in Indiana?”) The minivan has had a bunch of minor problems that have cost about $1,500 in repairs, and now the air conditioning is shot. So I’m looking for something more reliable.

“There are certain brands that get all the attention — Toyota Corolla, Honda Civic — but you will pay dearly if go to well known brands for used cars,” says Philip Reed, Edmunds.com’s senior consumer advice editor and author of Strategies for Smart Car Buyers. Reed. “There are many brands that are extremely reliable that cost a lot less money,” says Reed, citing Mazda, Mitsubishi and Buick. Here’s Edmund’s review of some other best bets.  

John Paul, AAA’s Southern New England Car Doctor, agrees. If you’re planning to buy the car used and run it into the ground, as we do, look at Hyundai, says Paul. “In the last couple of years, Hyundai has earned a good reputation for reliability — but not for resale value,” he says. “Unfortunately, the brand still suffers from the ‘oh, you bought a Hyundai’ factor – when it’s a smart choice. A 2007 Hyundai Santa Fe is the same price as a 2002 Toyota Rav 4.”  

Paul also says Kia and Suzuki have improved in quality. But if you’re buying a late-model vehicle, make sure the warranty transfers to you as the second buyer. “The car may have a 10-year, 100,000-mile warranty but that might drop to a three-year, 36,000 mile warranty for the second buyer.” 

Here’s Kiplinger’s choice of the best used cars under $20,000 (published July 2007).And the Consumer Reports Used Car Buying Guide 2008 comes out January 22, available on Amazon for $10. I would really like to ditch the minivan for a crossover – I’m crazy about the Mazda CX-9. I’ve seen the 2007 model on the internet for as low as $24,000, but that’s still too rich for my blood. Another two years though, and it might be a great buy. Have you had a good experience with a particular used-car model? I’d love to hear your recommendations.  

• Making the Most of “Cash for Clunkers”
• Greening Your Ride
• Tips on Buying Used Cars
• The Ten Least Expensive Cars to Own
• Budgeting for Gas on Your Next Roadtrip

This entry was posted on Wednesday, January 16th, 2008 at 9:54 am and is filed under autos, budgeting, deals and discounts. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.