That's a question you have to answer for yourself. In general I would recommend buying something that you can easily write a check for (never, every borrow money for a depreciating asset). If I was talking to my kids, I would recommend something that costs no more than about 20% of their annual income (i.e., a $10k used car on a $50k income). I know that's a very conservative recommendation, but they can drive nicer cars when they can actually afford them. I don't know anyone who's accumulated wealth by buying toys they couldn't afford.

When I was younger and dumber I bought cars, bikes, vacations, toys, etc. that I couldn't really afford; it isn't worth the stress. Just my $0.02.

This figure is NOT conservative enough. If you read most financial books, they only recommend you to spend about 5% of your NET WORTH on cars. That is you need to have $1M to buy a $50K MBZ. It would be bad news for the car companies as no one would be driving expensive cars. . But very few people follow the recommendation.

The picture below is one of my daily drivers. Top of the line 300SDL with reclining back seat at 328K. I use Walmart stuffs to maintain it in tip-top conditions. The other DD has 275K is for my wife. It has the same color, smoke silver, but different interior color. We paid peanut for the cars and we only insure them for liability so the running costs is cheap, not to mention we are running on alternative fuel.

If you notice there is another white 300SDL project car behind it. It has the #22 head. It is a spare car but is road worthy, with minor dings and surface rusts.

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Not MBZ nor A/C trained professional but a die-hard DIY and green engineer. Use the info at your own peril. Picked up 2 Infractions because of disagreements. NOW reversed.

W124 Keyless remote, PM for details. http://www.peachparts.com/shopforum/mercedes-used-parts-sale-wanted/334620-fs-w124-chasis-keyless-remote-%2450-shipped.html

1 X 2006 CDI
1 x 87 300SDL
1 x 87 300D
1 x 87 300TDT wagon
1 x 83 300D
1 x 84 190D ( 5 sp ) - All R134 converted + keyless entry.

I agree in principle, but many/most people (especially kids) don't really have any net worth and they do need some kind of transportation. In reallity a non-DIYer probably needs to spend at least $5k to get a decent late model car that doesn't need constant attention. I expect to spend about $10-15k on a first car for my kids so they have something reliable enough to last a few years until they can pay cash for a replacement.

For myself, I prefer old cars but there is no way my daughters would be able to keep one on the road without spending a small fortune on maintenance/repairs.

I wish my Dad did the same for me.

I think there is a lot of good cars to be had for < $2K. My boy graduated this year and he has a 1999 Neon bought for $1800 3 years ago. It is his daily driver and he loves it. I put the money which would have gone towards a 'better' car to his brokerage account.

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Not MBZ nor A/C trained professional but a die-hard DIY and green engineer. Use the info at your own peril. Picked up 2 Infractions because of disagreements. NOW reversed.

W124 Keyless remote, PM for details. http://www.peachparts.com/shopforum/mercedes-used-parts-sale-wanted/334620-fs-w124-chasis-keyless-remote-%2450-shipped.html

1 X 2006 CDI
1 x 87 300SDL
1 x 87 300D
1 x 87 300TDT wagon
1 x 83 300D
1 x 84 190D ( 5 sp ) - All R134 converted + keyless entry.

No price point, drive what you can afford. Just as long as you pay for it with cash, or 0% financing is OK, might as well use someone elses money if they are offering it to you for free!

When I can afford it, I'm going to get a Ferrari 575M and drive the living crap out of it. As long as I'm not working I'll drive it rain, snow or sun. Probably even take it fishing and do some light offroading down dirt roads with it.

Cars are ment to be driven.

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2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

I don't really buy the "0% financing" marketing. We all know there is no such thing as real 0% financing, so you are still paying the financing charges somehow. Anyone offering 0% financing should be willing to offer an additional discount for cash.

True..

However, I did buy my box truck with only 2.9% finance.. 36mos.

And I negotiated for HOURS on the purchase price.

sometimes companies will break their necks to sell you a truck..

My payment on a 40k loan is 1200.00. I figured interest to be about 85 bucks a month..

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Eugene

10 E63 AMG
93 300te 4matic
07 BMW X3
14 Ford F-150 Fx2

You should have seen the POS cars I drove in high school and college. I'm sure I could find something less expensive, but I like the safety of a late model C or E class for new drivers, compared to a smaller car. Of course, my daughter wants to buy a motorcycle instead, so we'll see how that works out.