I’m currently single and have one car—a ‘98 Jeep Wrangler. I love it and enjoy working on it, but it’s not the best for daily driving. I’ve thought about selling it and getting something more practical, but I don’t want to let it go.
I have $16k in savings and make $38k a year (military, so no rent). I’m looking to spend between $3k-$7k on a second car. Would it be a bad idea to buy another vehicle, or does this make sense financially?
It’s not a bad idea as long as you choose the right car. If you’re looking in the $3k-$7k range, go for something reliable like a Honda or Toyota. You don’t want to end up with another project car when you’re trying to get a dependable daily driver.
Not a dumb move, but purely from a financial standpoint, it’s not the most efficient use of money.
That said, with cars in this price range and you doing your own work, it’s not a big deal. At least you’re not financing a high-interest muscle car like a Charger or Camaro, so you’re already ahead of a lot of people.
Keep in mind that having two cars means extra costs—insurance, registration, and maintenance all add up over time.
Yule said:
Keep in mind that having two cars means extra costs—insurance, registration, and maintenance all add up over time.
Insurance might not be as bad as you think. When I added a second car to my policy, it was only about $15 more per month.
Registration will cost extra, but on an older vehicle like your Jeep, it’s probably low.
Having a second car can actually be useful, especially if you like working on cars. It gives you the freedom to take your time with repairs without being stranded. I have an older Nissan truck as my second vehicle, and I’ve used it for hauling stuff and off-road fun.
As long as you’re paying cash and choosing something reliable, it’s not a bad move. Just don’t go into debt for it.