The Sweet Spot

The Sweet Spot is a term I give to the price point many cars fall into at their best value. Here is a quick reference guide to find the sweet spot for your next purchase:

Firstly, I do not recommend any lower than the entry level budget price of $5000. Any lower and you risk getting into real dangerous territory where you generally end up spending far more on repairs in a relatively short span of time. You will end up spending way more than you bargained for. A car bought for under $5000 is the proverbial money pit.

Entry Level Budget:

$5000 - $8000

At this price point you will find a budget car, generally a Toyota Rav4, Honda CRV, or similar car in this category that has been well cared for, dealer serviced and low miles for it's age. Age will be between 7-8 years old. Like I said this is entry level but still very reliable quality and will give you many years of ownership with minimal repair and low "cost to own" value. You can find cars with under 75,000 miles for this price. They are hard to find but they are out there. This is a car you will keep for 3 years on average, depending on your annual mileage. On these I look for "dealer serviced" as well as highway driven.

Luxury on a Budget:

$9,000 - $14000

In this category you can get the same cost to own value with minimal depreciation but in a more upscale model. These cars are equipped with options you may not get in the entry level category; Leather seats, keyless entry, heated seats are possible in this category. Furthermore the cars available at this price point include the Camrys, Accords and similar cars. Age is 7-8 years just like the entry level and similar mileage. These are also hard to find with original owner and no accidents, but they are out there. Again, dealer serviced and highway driven is a big plus.

High Quality Entry:

$15,000 - $19,000

This is where the field expands. At this point you are getting the "Certified" cars from the dealer, which I recommend. Dealers will include extended factory warranties on these models. These cars tend to be the personal lease trade-ins with 30-40K miles on them. This is the best used car bet if you want the assurance that your car will be reliable for the next 5 years or so. The depreciation is a bit higher but that is what it cost to be safe from the unknowns in car repair.

High Quality Luxury:

$20,000 - $30,000

Luxury cars tend to be much more expensive than this of course, especially when you are looking at higher end German models. What I am covering here is for the average buyer who is looking for a sensible, yet luxury brand at a decent price. This would include the high end Lexus and Infinity lines as well as comparable cars in that class. On these cars we are looking at ultra-low mileage vehicles with perhaps less than 20K on the odometer. These cars tend to be bargains due to most of the heavy depreciation was absorbed by the original buyer. His loss is your gain. In my opinion these cars are an excellent value over buying new. Furthermore, the original owner would have returned to the dealer a few times to work out the bugs, an inconvience you most likely will not have.