After deep deliberation, I decided to pass on buying the $550,000 Mercedes G650 Maybach. It just felt like too much to spend on a family car when I could invest the money and earn $20,000 a year in passive income forever! Instead, I bought a family car for safety first.
What type of family car did I buy? I bought a late model 2015 Range Rover Sport V6 HSE with 11,200 miles in Santorini black with black leather interior.
It's in perfect condition with a warranty until July 2019. The original sticker was $76,000 before tax or roughly $83,000 out the door. Such good value compared to the G650 Maybach right?
Safety First: Family Car
Small cars like my Honda Fit are absolutely wonderful in the city. Parking is a breeze. Gas mileage is awesome. And they're inexpensive. Unfortunately, I've noticed a surge of big cars dominating the roads, bullying smaller cars like mine.
I've never been cut off, tailgated, and snaked at a four-way intersection so much as I have with my Fit. It was when I saw a car plow into another car on a quiet neighborhood street that I decided to make the switch. Distracted driving due to cell phone use is on the rise.
I've been eyeing this all-wheel drive vehicle for three years ever since Land Rover finally updated its previous Range Rover Sport model that lasted from 2005 – 2013.
I used to drive Moose, a 2000 Land Rover Discover II from 2005 – 2012 before finally giving him up after not wanting to fix the warning lights on his dashboard for $1,000. He never would have passed the smog check and he was only worth $3,500 in the end.
Waiting until the second or third year of a new model is always a good idea so the manufacturer can get as many of the kinks out as possible. Further, buying a two or three-year-old vehicle skips the largest part of the depreciation hit while still having a warranty.
How The Transaction Went Down
I was searching on Craigslist one evening for a family car when I stumbled upon an ad by Audi Marin for $64,770. I bookmarked the ad and continued scrolling when I found another ad five spots down for the same vehicle by a private party for $61,000!
When I contacted the private party to ask if it was still available, he said he sold it while he was away on business. I asked him whether his car was the one on Audi Marin's listing, and he said yes. Then he told me he hadn't yet got a check from Audi Marin and was headed over there to get his car back due to so much demand from his Craigslist ad.
He told me the next person who gives him $60,000 gets the car.
Sensing an opportunity, I told him I'd meet him the very next day near his house. I took the car for a test drive and inspected everything. This was even though it already went through a 200-point inspection by Audi Marin before they could purchase it. Audi Marin also changed the oil and oil filter as well. Double score.
Negotiating The Family Car
When it came time to seal the deal I told the seller I'd pay $58,000 cash. The condition was only if he could sell the car to me that moment. We could go over to my bank and I'd cut him a cashier's check.
He hesitated for a little before I told him, “Seize the moment. I'll be the smoothest private party transaction you'll ever encounter. Your wife already bought her new Audi Q7, so it's time to simplify life with only three cars!“
He agreed, and we wrapped up the transaction in 35 minutes at a Citibank branch. I then dropped him off at a steakhouse along the way to SF. He was meeting his wife for dinner there. It feels great to pay $6,770 (10.5%) less than the dealer's asking price. I also paid $18,000 (24%) less than new with so few miles and two more years left on the warranty.
Although I had been eyeing the new Range Rover Sport for over two years, I'm never one to buy anything on the spot. But because the seller showed up on time, was a fellow entrepreneur, and was friendly to talk to, I felt I could trust him. He wasn't hurting for money either since he had the title in hand. All he wanted was a smooth transaction, which is exactly what I wanted too.
In case you're wondering, the seller's other two family cars are a $120,000 Tesla Model X and a $40,000 Ford F150 he uses for his business. He's in the food production business.
Didn't Buy The Family Car For Me
Do you know how you sometimes buy a gift for your significant other, but it's really a gift for you too? Well I've decided that Moose II is really a gift for my son via my business. He just doesn't know it yet! It's a great way to feel better about spending so much money, despite being $492,000 cheaper than the G650 Maybach,
I would never forgive myself if something were to happen to my family in an accident just because I wanted to save money. The Honda Fit's doors are too thin. Further, the crumple zones are too shallow for me to feel safe with a baby on board after researching the safest cars to survive a crash. It doesn't matter if I'm the best driver on the planet. All it takes is one reckless driver to ruin our lives.
It's funny how everything changes once you have children. The idea of getting a sports car has gone completely out the window. If you want one, get one before having kids. Safety is now my #1 priority, followed by comfort, and then performance.
There's a chance I might hold onto Moose II for 16 years and pass it onto my son. By 2033, Moose II will only have ~75,000 miles since I only average about 4,000 miles a year. But I'm hoping by then, there won't be a need for any of us to drive ever again thanks to self-driving cars and better public transportation. The last thing I want is a teenager driving behind the wheel!
If you can afford a nicer family car based on my 1/10th rule for car buying or my net worth rule for car buying if you're older, it's worth ponying up for a safer vehicle. Why risk it?
Plans For A New Safer Car
Our goal as parents is to live as long as possible to ensure our kids become independent adults. We should own safe cars to minimize the chances of getting seriously injured in a crash. Today, I've owned my Range Rover Sport for six years now. Given my ideal length of time to own a car is 10 years, I still have four years to go.
Somewhere around 2026, I plan to buy a new electric vehicle. There should be a lot of safety improvements over a 10-year time frame. Further, electric vehicles tend to be safer given there is no motor in the front. My hope is that self-driving technology will also improve by then as well.
I'm eyeing the VW ID.Buzz as my next car. But in the meantime, I'll continue enjoying my Ranger Rover Sport!
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Readers, how much do you think about safety when it comes to purchasing or driving a family car? Why pay full price and maximum tax at the dealer when you can save purchasing from a private party? Oh yeah, feel free to judge me on my car purchase. It's fun!
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Related: Is Owning Two Cars Worth It?
That Mercedes was…$550K? SERIOUSLY??? I wouldn’t spend the money on that car even if I had all the money of the Universe.
Just for fun, I wanted to mention that I just bought a Range Rover Sport HSE this weekend. Mine is white instead of black only has the 20″ inch wheels though. I remember reading this article a few years ago, and it always stuck in my head. Though i’m not typically an SUV guy, I’ve always loved the look of them and as you mentioned they have a very solid/safe feel. Coming from several BMWs, the tech is a bit painful and the ride is a bit choppy but otherwise enjoying so far. Really makes you feel good driving it with the high quality leather, clean design and high up driving position. Our 5 year old absolutely loves it and was beaming when he learned it was our new car (i surprised him). He’s actually excited to go places in the car now just cause he loves riding it (in the past he’d throw a fit about getting in the car). He said “this is the nicest car I’ve ever been in” and that he wants to “keep it forever”. The look on his face when I showed him the air suspension was also priceless. LR should probably put him a commercial – lol. Now he’s asking me all about how it works. Anyway, just thought i’d share.
Ah, to make your child feel excited and proud to be in your car is pretty valuable. I was always embarrassed when my dad drove a 1976 Datsun with no paint and hub caps in 1990.
Have fun!
Thanks! Are you still enjoying yours?
I may be late but the story might be amusing… Back in 2015 our rides were Mazda Protege 1999 and Mitsu Outlander 2004. Both had VINs starting from J, our ultimate requirement, as we value reliability and freedom from hassle (you know, never afraid of leaving a car open in a so-so neighborhood, not caring when your kids get in with their feet in the sand at a beach and so on). Our income has never been past 100K and we spend a lot for 2 kids activities. Very frugal for ourselves. Now, in 2015 my husband was driving a lot for teaching in 4 colleges. My Dad wanted us to change Mazda for safety reasons. We thought of Prius or my love – Mazda. I HATE SUVs, no fun, I hate high seats, so all opposite to a regular mom. As Dad said he will pay half, we ended up buying a new Prius. On december 31, 10pm. The dealership needed to sell one more Prius to get a nice total bonus from Toyota. They hated us right away as we were reluctant buyers and as one rep put it: “your faces tell us that you are not gonna take any credit, you’ll pay all cash right away”. True! The Prius we wanted to test drive did not start, and I suddenly spotted a Prius 3, so handsome in red with a black glass top. I told them, I will buy it for 23000 total and period. I don’t care what will the car price be or dealership fees, only the total. And that happened. They wrote down it as 20500K car, with a MSRP of 28K. Finally, we refused to pay $700 for satellite anti-tefth system… Ended up being a right decision, as it was already in the car but you have to pay for it only once (dealer had)! When somebody tells me I’m giving you such a great deal right now and you can’t decide tomorrow, I have a unique sense for bullshit :) Overall, I think it was good deal for the last year generation car, with VIN # starting from J, with very nice rooftop and solar batteries and tinting (an option) from Palm Beach Toyota. Thanks, Olga
It’s a great car but it will not last more than 10 years not because it will actually not run but because of the britishness of those trucks. I have one that is 11 years old the thing runs like a tank and never had any problems but now the weirdest things break and only dealers or specialty mechanics will look at the truck and simple repairs and maintenance start to get ridiculous and the air suspension starts to leak which winds up being a 4-5k repair, mine just started and I’m either dumping the car or converting to coils for around 2k, depends on the deal I can make. I can one up you though because I bought when gas prices were $5 a gallon got 59% off the original sticker for a 22 month old car with 20k miles on it so it owes me nothing at this point(years 1-8 had no repairs, only tires and brakes). But make no mistake this car is a luxury they cost a ton to own, they eat tires and brakes (which for these cars aren’t cheap 2k if you use an independent mechanic for brakes and buy tires at the tire rack, dealers charge between 3500-4k and every 25k miles they’ll tell you need new tires and at least one axle of brakes, pads and rotors always. The new rovers have a lot of technology in them and it can get wonky when they get old, the good news is for 10 or so years they are super reliable compared to old rovers but once they age the expense to repair makes them functionally obsolete. Just to give an example with mine I recently needed to replace the front upper and lower front control arms, sway bars, inner and outer tie rods, both front wheel bearings, brake hoses, a caliper, the shifter cable, a steering column piece, the parking brake shoes, the 100k mile service, and the tailgate actuator and cable the dealer pricing for those repairs was ~10k, my neighborhood mechanic did the suspension bits and wheel bearings for $2500, LR dealer was $1400 on the shifter cable and steering column, $1300 on the parking brake and $1800 on the 100k mile service. All in all a lot of money to sink into an 11 year old car and the dealer already is preparing me for the air shocks needing replacement and unfortunately the stuff I had the dealer do were all things local mechanics were unwilling to touch or didn’t have the tools to do. I replaced the tailgate actuator and it required removing panels in the trunk because the trunk was stuck closed, a miserable job and $200 plus dollars in parts from the dealer.
Cool. What year and model do you actually have and how many miles did it have on it when you bought it? I had my LanRover discovery two for almost 10 years and it ran great but the electrical gremlins started.
So far, the range rover sport has been very dependable. I’ve had it for one year and four months now. I think so long as you spend 1/10 of your gross income on a car, the maintenance, wheels, and brakes aren’t very painful at all.
Sam, have you (or any readers) used Roadster? They’re a car buying service in California, interested to hear anyone’s experience. Thanks.
Thanks for sharing your car purchase process. So how do you sell your cars?
Do you sell on craigslist, trade into dealerships, etc? Trading into the dealership is the easiest, but a total ripoff, whereas selling on craigslist can be a hassle, as well as potentially dangerous … glad you had a good experience with your purchase.
Appreciate anyone’s thoughts!
I’ve always sold via Craigslist. Look up KBB value, and the clearing price is generally around a 10% discount to KBB. But of course, when you are buying private party, you’ve got plenty of opportunity to negotiate aggressively. Using cash and being an immediate same day buyer helps a lot.
The Range Rover Sport has treated my family well so far, and we don’t miss the Honda Fit at all. I cannot drive a smaller car transporting our baby. It just feels too dangerous.
Great post, Sam!
I too understand the allure of a Range Rover. I used to drive an ’04 RR, but I sold it back to the lady whom I bought it from (for the same price!). I decided to take your advice and get a much cheaper ride. A 2000 Toyota Camry for $1k.
I definitely understand what you mean by people being unaware of small cars, though. The RR I had was red and I never felt worried about being hit by an unaware driver. But in the Toyota it happens at least 3 times a week. The big trucks pull in front and slam on their breaks all the time, not to ruffle my feathers or anything, but simply because they think there’s a gap there when it’s ME that’s there.
Enjoy!
Sam, smart plan.
Your child seat should be in the center of the rear; if statistically much safer. (From the photo, NC appears to be on the side.)
Hope this helps, and enjoy parenting!
Am interested in buying an RRS as well. How has it been so far? Any issues?
No issues at all. It has been great. I’m so happy I bought this car. Feel so much more secure than the Honda fit. Very fun to drive as well.
Congrats! I’m a similar age and also have a young son (just turned 3). We live in a city, and llike you , only drive about 4-6k a year. Currently, we have a 2008 BMW x3. It’s the perfect size for us, drives well and hasn’t had too many issues. But having gotten a letter about the airbag recall, and also seeing how my son’s legs easily touch the back of the front passenger seat, I’m beginning to think about getting a newer/larger car.
I’m actually not a big SUV fan and ideally would like a sport sedan or hatch. An Audi S7 would be great in my book (beautiful to look at, great interior, hatchback practicality, V8 sound and power!). But my wife feels differently.
On the SUV front, I’ll admit that both the Jaguar F-pace and Porsche Macan look pretty good to me. BUt the Macan is smaller than my current X3 and my wife doesn’t like the way either look (go figure). But…she loves the Range Rover Sport.
I kind of understand – the RRS does look good. And there are a ton of them in my area so I see them every day in every color. But given that I’m not as smitten, everytime I look at the specs, I find other SUVs with more favorable dimensions/performance/interior space/tech/price/safety (The F-pace for example). I could care less about the off-road capabilities (which is another Range ROver differentiator).
So help convince me…what’s so great about the Range ROver Sport? Clearly there’s something because dealers are still selling new ones for over sticker! Is it at all fun or engaging to drive?
You should buy whatever you’d like based on my 1/10th rule car buying rule!
The RRS is fun to drive, rides high, quiet, stable, safe, and is my favorite looking SUV on the market.
I’d be over the 10% rule but we’ll under the 5% of net worth rule if I bought 60-70k car.
Sam,
Long time reader, first time asking a questiion: does the 5% rule of net worth applies to only saving such as taxable and deferred tax accounts? Or do you consider including your homes escpecially when they are paid off into your net worth formula?
Thanks
Sang Tran
I include everything. The rule is there for older folks who have accumulated a nice net worth but may no longer be as driven to earn income anymore.
What a nice ride. I was in Aspen, CO this past weekend and I think they’re actually giving them away because I must have seen 100s of them :). In any case, totally respect your thought process and things you took into account before pulling the trigger. Also, found phenomenal your negotiating skills to get a price below market value. Like some have mentioned we make decisions based on our own individual situations (income, debt, etc) and ultimately on happiness. In my own situation, it’s hard for me to justify a ride like yours (it would be ~20% of gross income). When our Rav4 was totaled (wife had car accident) we went for a CPO GMC Acadia and so far so good ($30K w/50% down). I’m of the opinion we should minimize putting money on depreciating assets like cars that’s why buying CPO is a better choice in my opinion. I would have asked you why not finance it?, but I’m guessing being able to pay for it cash gave you a competitive advantage when making the transaction (perhaps you prepared for this buy by putting this money aside)
Congrats on the Rover. I love mine (Range Rover Supercharged), is great combination of size, speed, and comfort. I have owned a couple of them and have not had an issue with them. It may just be in my head, but I do sometimes feel like people have a predisposition towards me b/c of it. Rover owners are perceived to be arrogant jerks someone once told me. f the haters though….
Welcome to parenthood, and a rather conflicting mindset in personal finance, when it comes to your children. Younger crowd talks about saving on latte, and parents just smirk. Once a parent, saving is no longer in your ONLY hands. Its what you value. And kids always win.
Well done on your new ride.
We have a ‘Rover joining our fleet shortly too. Was seduced by the Velar and was able to get a First Edition allocation. Unfortunately a manufacturing issue with the wheels is delaying its deployment for a few months.
Live in the city and it offered the right (theoretical at this stage) combination of space, park-ability, performance and style.
Still think the Macan GTS is the best “drivers SUV” – but wasn’t large enough for what we were looking for. 2nd choice was an AMG E wagon.
Sam congrats on your purchase. Subconsciously I’m sure you were thinking that this car may qualify for Uber Black. Wondering if you’ll decide to try it out?!
Great article! I just upgraded from my 15 year old Nissan Frontier to a 2016 F-150. It took me three years to pull the trigger. Not because I couldn’t afford it, but because I couldn’t justify spending the money (especially since I drive less than 10k miles per year). Then I became a father. Every time I put my daughter in the front seat of my Nissan (had no rear seating), I felt an incredible amount of guilt and paranoia of being T-Boned. I finally decided it was time for something more sturdy. I still think it’s a LOT of money, but the peace of mind of having my daughter ride in a much safer vehicle squashes any bit of doubt I’ve had for buying such a lavish vehicle.
Peace of mind is priceless. And of course, a larger vehicle is not a license to drive recklessly. I am now the most cautious driver whenever my son is on board. And I should be cautious when Im alone. Need to live for at least 18 years!
Glad to hear that you bought a car a couple of years old — very smart move financially if you look at the depreciation curve on something like a Range Rover!
My next truck will be a luxury truck that’s a few years old rather than the brand new mid-range truck I have now. To me, it’s the ultimate family vehicle as it pays dividends when camping ;)
I’ve been a consumer of the Land Rover product since 2002. My first LR car was the Discovery SE7 model. It had top of the line everything and was absolutely gorgeous. But then fast forward four years, and my husband decides to surprise me on Christmas Eve with a brand new RR Sport. Yep, red bow and all, just like those sappy car commercials on TV. So, even though it broke my heart, I bid farewell to the Disco and sent her on her way to the happy driveway of my daughter and her husband. Keeping her in the family definitely made the transition easier.
My 2007 Sport, “Betsy,” is nearing her 11th birthday and has about 140k miles on her. While Betsy may be well past her leggings wearing days, she’s certainly loyal and still very reliable. But you know what, I want a new car anyway! Maybe that makes me the unreliable one. : /
Enjoy your reliable Rover, Sam!
Good to hear you’ve had your RR Sport for almost 11 years and love it!
I do find it amusing when folks poke fun at the LR reliability, as if they were stuck in 1985. There has been so much improvement in quality and reliability since then, basically any car manufactured nowadays is reliable. So the auto magazines are splitting hairs been perhaps 95% reliable vers 95.2%, 95.5%, 96%, etc. They gotta stay in business after all.
The auto world is too competitive to NOT make a reliable product. But when buying, I do try and throw every bad datapoint at them to get a good price.
Hey, I can’t fault you for your negotiation strategy. I did the same thing with my most recent house purchase. I asked the sellers about the number of Airbnb rentals in the area and the negative effects the short-term rentals were having on the neighborhood. I didn’t bother to tell them that one of the main reasons I was buying the house was because I’d like to Airbnb it some day.
What comes around, goes around, though. Someday when we’re ready to sell our possessions, we’ll be tap dancing as we answer the same questions. Karma. : )
Congratulations on your purchase. One thing that concerns me with the trend towards bigger cars is that, while they may be safer for the vehicle’s occupants, the opposite may be true for pedestrians and bicyclists who share the road with those vehicles. The one time I was in an injury accident was when a car nailed me as I was walking across the road (in a cross walk, with a walk signal, after having looked both ways, but they hit me taking a left turn when I was in the far side of the cross walk). Thank goodness it was a compact car that hit me, and not a tank. I’m sure pedestrian and bicycle safety will be on the list of things to teach your son when he is older, as well as modeling safe driving behavior.
It’s a worrying trend. If I had the power to make all cars bigger than my Honda Fit go away, I would. But, even if I could, I wouldn’t be able to do it quick enough (within 1 week) b/c my son has already been born.
The funny thing was, I was OK to be riskier with my life driving a Honda Fit for the past three years, but I am NOT OK being riskier with my helpless baby’s life.
As a small car owner, I found large cars to be obnoxious and annoying. Was bullied around the road, and most don’t go up to Lake Tahoe during the winter.
But now, I don’t care what anybody thinks if I drive a larger vehicle. I care WAY MORE about the safety of my son. They’ve made it illegal in Hawaii to walk and look at your cell phone now. GOOD. They are creating more bike lanes and lighting for bicyclists. Excellent.
But no matter how careful we are, it only takes someone else who is not careful to ruin our lives. I’m not willing to risk it.
How about you?
Serious question here for folks who have purchased SUV’s. Would a wagon/sportwagon be an option if they were available in the US? I’m a Audi guy and love there wagons but they stopped selling most of them in the US due to lack of demand (A4 allroad might still be an option). I would think a wagon would drive better and still have all the SUV features that one would need except maybe extreme people/cargo space (third row seats/taller vehicle) Most of the SUV’s don’t go offroad so the ride height isn’t even necessary. Is it possible that driving a wagon is like driving the family truckster from the National Lampoons Vacation series?
Just took a quick look to see who still makes wagons. I guess there are more than I thought (some are tiny and don’t compare to full size SUV’s)
Mercedes E class wagon
A4 allroad
Porsche Panamera Sport Turismo
Volvo V60 series
Buick Regal TourX
VW Jetta/Golf
BMW 3 series
Subaru
my daily driver is a 2006 Subaru Outback. it’s got only 25k miles since that drive is ~2 mi a day these days.
it’s a great car. I plan on keeping it forever.
the wife has a big MDX for all the reasons outlined in this article however.
my toy is a 4 door jeep wrangler. the best car for the beach this time of year :)
Ride height does help from a safety standpoint both in being seen and seeing the road around you but I don’t think that’s really why most people buy SUVs. I bought an SUV because I didn’t like any of the wagons I could get in my price range at the time but I think it’s an image thing for most people. When people think of a wagon they still picture something like this:
I’ve always thought an E63 AMG Wagon would be a great blend of fun and practical family car. I’m just never able to talk myself into paying the price even for a used Mercedes so I went with a more practical and less fun Hyundai SUV.
You should’ve tried to convince him to let go his model X! =) I’m not a big car buy but I’ve been enamored with the Tesla. I was going to buy a $110K model X but my wife vetoed me. But it’s a good thing, because I think I would’ve regretted it later. Solid choice though Sam, on the range rover.
Congrats! Things change for sure when you have a kid. I drove an ancient Subaru wagon ($500) for a while and I would never put my kid in that car.
Right on with the 1/10th rule. Might as well spend a little when you have money especially if it’s for safety.
I’m driving my dream car right now! It’s a Toyota Prius! It is the very first car I became the owner of at the ripe age of 28. Luckily, I had good public transportation prior to that. It’s too bad I didn’t know about the 1/10th rule back then but at least I got a 15% discount off of invoice price since my dad was a long time employee for Toyota. Also, due to my dad’s relationship with the company, I was able to sit in the Toyota manufacturing plant’s office and design my car from scratch. I selected the Barcelona red paint, beige seats, keyless entry (favorite feature!), back-up camera, and auxiliary port which was a cool feature that wasn’t mainstream at the time. Of course, the fuel savings is included as it is what initially got me interested in the car. It took four months to build but I’m still loving the car after 136,000 miles and not a single thing has needed to be repaired beyond the usual maintenance items. Hopefully, if my Prius can last long enough, my next car will be a fully electric charge car. However, if there’s kids in the picture then I think I would have to go with an SUV for the safety features.
Love this post!! I wrote a post about this very same thing justifying my purchase of a 2014 Mercedes Benz ML350 last year!
I contemplated a brand new car, but realized the value of a slightly used car that will last me longer ended up being the better choice for me. I do not have kids yet, but we are hoping to in the next 2 years or so, which is why the safety features were important to me. I have lane assistance, blind spot monitoring, adaptive high beam assistance, pre-safe (accident prevention warning), a back up camera (something I didn’t have in my prior vehicle) to name a few. I’m sure I’m forgetting some even.
In addition to all these great safety features, I cannot speak highly enough about the customer service provided by MB and the comfort of the vehicle, which was big for me because of my commute to work. No regrets here!