I Have $20,000 For A Post College Commuter Car! What Should I Buy?

Blake just graduated from college and wants to upgrade his old Jetta with something sturdy that can handle long drives. With a budget of about $20,000, he would like good MPGs, a respectable stereo, and a comfortable interior. What car should he buy?

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Here is the scenario.

I’m a 23 year old recent college grad living on my own in Austin. I currently drive a 2011 VW Jetta that has a ton of computer and brake issues, that would cost more to repair than the car is worth. I want something reliable that I don’t constantly have to worry whether it can survive a 2 hour trip.

I want something relatively new with low miles, that I can keep for a little while. I would also like good gas mileage, easy-to-use infotainment, good sound system, prefer leather (easy-to-clean interior) My budget is around $20,000.

Quick Facts:

Budget: up to $20,000

Location: Austin, Texas

Daily Driver: Yes

Wants: Reliable, good MPGs, ideally leather seats

Doesn’t want: Something too old

Now that you are off into the “real world” you don’t want to be stressing about having a car to get you where you need to go. While you may be tempted to opt for a tried and true Honda or Toyota product, selecting that leather seat option is going to mean a higher-mile car that is a bit older with no warranty remaining.

My suggestion would be a Hyundai Elantra. A worthy competitor to the Civic and Corolla but you get to use some depreciation to your advantage at the sub-$20,000 price point, especially if you want a well-equipped model. The Elantra is a comfortable cruiser even for a compact and comes nicely optioned even at the base trim. The four-cylinder motor will return up to 40 MPG on the highway, which is pretty impressive for a non-hybrid. Here is a Limited model for just under $20,000. This has leather seats, a BOSE stereo system in addition to all the infotainment and safety tech features you could ask for.

You’re young and the future is uncertain, why choose something boring when you could have a little fun with it? Get yourself a nice Mustang to drive around. Not only will you have something stylish and fun to drive, but the 2.3-liter Ecoboost engine pumps out 310 horsepower and 320 pound-feet of torque, which is more than enough to get into a little trouble, but it’s still reasonably frugal delivering up to 31 miles per gallon on the highway. There’s a nice leather interior and beautiful blue paint on this one. There are lower-mileage examples out there, but with just 67,000 miles on the odometer it should still have plenty of life left in it, and the price is too good to pass up. Just seventeen thousand dollars separates you from your next (cool) daily driver. Make it happen.

Well, Blake, you’re in luck because not too long ago, a friend’s younger brother (and admittedly, my favorite of the two) had the exact same question. He didn’t live in Austin, but he even had an identical budget. I tried offering a few more enthusiast-focused suggestions, but in the end, he bought a Honda Insight that he’s been perfectly happy with. 

Sure, you could always get a Toyota Prius, but everyone thinks “Prius” when they hear “hybrid,” which means the Insight flies under the radar, and there’s a good chance you’ll be able to negotiate a better deal since so few people even remember Honda brought back the Insight for another generation in the first place. Since you’re just starting your career, the Honda badge is also a bonus. It’s the kind of car you’re “supposed” to drive, unlike, say, a heavily depreciated BMW that may have cost less but still looks fancy. You shouldn’t have to think about this kind of stuff because it’s so stupid, but coworkers gossip, and people think a luxury badge automatically means you spent a lot of money. I hate it, too, but it never hurts to give your new coworkers something to gossip about.

Here’s one that isn’t too far away and also looks like it ticks all your boxes. It’s a 2020 model with 82,000 miles, making it far newer than your Jetta, and even with a decent number of miles on it, you’ll be able to keep it for years. The Touring trim also offers all the features you could possibly want, including that leather interior, while still staying within budget and getting great gas mileage since it’s a hybrid. It also looks better than a used Prius, and that’s a win for everyone.