George Kamel - The Best Used Cars Under $5,000

Episode Date: May 1, 2024

💵 Sign up for EveryDollar today. Create a free budget!  Believe it or not, you really can find a reliable used car for a few thousand bucks. In today’s video, I’ll review some of the best used cars under $5,000. But the question is, can I find them for sale online?  Next Steps  📗 Order George Kamel’s new book, Breaking Free From Broke.  📺 Watch: Why Is No One Talking About America’s Wealth Killer?  Offers From Today's Sponsors  This episode is sponsored by Tello, a mobile service plan designed to save you money. Go to tello.com/George for $5 off your first month of Tello’s unlimited data plan.   🙌    🎙️ The Ramsey Show    🍸 Smart Money Happy Hour  💡 The Rachel Cruze Show  💸 The Ramsey Show Highlights  🧠 The Dr. John Delony Show  💼 The Ken Coleman Show  📈 The EntreLeadership Podcast     Ramsey Solutions Privacy Policy  Learn more about your ad choices. Visit megaphone.fm/adchoices

Fun fact, a new car loses about 10% of its value as soon as you drive it off a lot. But did you know, it loses 100% of its value as soon as you drive it off a cliff? What's up, guys? George Camel here, and I don't need to convince you that buying a used car is a great way to save money. But it seems like every time I tell people to find a good, reliable used car for a few thousand bucks, people get their seat belts all up in a wad and they're all, cars aren't that cheap anymore, or I can't find anything safe to drive for that price. But I think what they really mean is, can't find the car I want for that price.

A very astute observation, sir. Now I have a hunch there's plenty of inexpensive, reliable used cars out there that are also safe, and today I'm going to see if I can prove it. So I'm going to review the best used cars under $5,000, and I'll do a little car shopping to see if I can actually find these cars, IRL. But before we jump in, hit those like and subscribe buttons, and share this video with that one friend whose car always smells like vinegar and wet Cheetos. Might be time for an upgrade.

And I'm not talking about the car. talking about getting better friends. Okay, let me start off by saying if you want to find a car for under $5,000 in the current economy, it's going to have to be pretty old or have a butt ton of miles on it. So you might want to lower your expectations here. In fact, most of the vehicles on this list were made back in the day when Facebook was only available to college students. But you can still find these cars on the road because they're so dang reliable and dependable. You can't bring them down.

And it's not just my opinion here. All of the cars I'm about to show you performed well in tests by consumer. Reports. Yeah, that consumer reports, and I'm a proud paying member. So let's take a look at some of these reliable relics and see if we can find them for under $5,000. First up on the list, the 2005 Toyota Corolla. Now, this car came out the same year as Guitar Hero. And even though driving a Corolla isn't quite as fun as pretending to play I want to be sedated by the Ramones, it's a practical car with good fuel economy. You can expect to get around 29 miles per gallon with this beauty. And here's what Consumer Reports said about it. While ride quality is absorbent and unableness. and obtrusive, handling is uninspiring. You know what, if I'm spending $5 grand on a car, I don't need the handling to be inspiring. And honestly, I don't care that much about absorbent and unobtrusive either,

unless we're talking about underwear. In that case, I care. That's too much information. Anyway, if safety features are high up on your priority list, here's what you need to know. The 05 corolla has normal airbags, but it may not have curtain airbags, you know, the little ones on the side.

So an 05 corolla is still a good, reliable used car, but can we actually find one for under 5,000? Let's take a look. Okay, so I'm going to use AutoTrader.com. We're going to use the filters here, and I'm going to go radius 500 miles. I'll tell you about that later. Toyota Corolla, 2005, obviously used. I think that's all the parameters we care about.

Can we find one under $5,000? 1,000% yes. 1, 2, 3, 4, 5, 6 cars under $5,000 that fit that criteria. That is pretty impressive. Now, these cars have 174,000 miles, 192,000 miles, 141,000 miles. So, there you go. You're not going to find one that has low mileage for that price, but these cars are probably going another 2,300,000 miles if you take care of them.

We're doing pretty good off the bat with that first one. So let's put up the scoreboard, George 1, naysayers, 0. Now, before you jump in the comment section, going, Yeah, but George, I'm going to have to put thousands repairs on these old cars. That's insane. Why would I do that? I'm going to get a new reliable car. Here's the deal.

These cars are super cheap to insure, and they're super cheap to repair. Okay, they've been around forever, and Honda and Toyota are notorious for having cheaper repairs than almost any other vehicle. So shove it, Bucco. That hurt my feelings. All right, let's move on to the next one, the 2006 Honda Accord. Now, the Accord is roomy, reliable, and relatively plain. But we're not looking to impress anyone here. According to Consumer Reports, handling is quite nimble.

the ride is steady and controlled, and switches and gauges are intuitive. Like I always say, the only thing better than an intuitive switch is an intuitive gauge. Not catchy, but true. Most of these lady killers out there have a four-cylinder engine, but the high-end version has a V6 that's powerful and quiet, like Superman on a silent retreat. And as far as safety goes, no worries. Curtin Airbags came standard on the 06 Accord, so that's a plus.

All right, moment of truth. Let's see if I can find a 2006 Honda Accord for under $5,000. Oh, this is impressive. And, you know, these have 199,000 miles, 216,000 miles, 171,000 miles. But I'm telling you, this car will outlast you. So I'm very impressed. And auto trader tell me this one is a great price for the model, an EXL. That's the top of the line at the time.

And I say that as a man who drove a Honda Civic EXL in 09, that was beautiful. Sunroof, heated seats, leather seats, what more could a boy ask for? It has lower mileage than 50% of similar vehicles. So there you go. Leather seats, all the bells and whistles. Not a bad looking car for 49.50. So if you're keeping score at home, that's George II. Naysayers, zero.

Let's move on to the next vehicle on our list of reliable cars under $5,000. And we're going luxury this time with the 2004 Lexus E.S. Now, this car came out the same year as the first Mean Girls movie, but it's still pretty fetch. And both the movie and the car still hold up. I'm sorry that people are so jealous of me, but I can't help it that I'm popular. According to Consumer Reports, the Lexus ES 300 is a well-rounded package with very few flaws. Terrible Tinder bio, but a great description of the Lexus ES 300. They also said the V6 provides powerful acceleration, the transmission shifts flawlessly,

and the ride is isolated and composed. I think we should all aim to be isolated and composed. Bottom line, it's pretty luxurious for an old. car and it handles well. So let's see if I can find an 04 Lexus ES for under $5,000. And would you lookie there? 18 results. And right there, front and center, $3,500 for Lexus ES. We got one for $5,000 and we have one for $5,500. And again, you're going to find them for about 200,000 miles on this. But I'm telling you, the Lexus holds up. And it's made by the same folks as Toyota. So you know those things are built to last.

Love that. That's their tagline, I think. Brum, Vroom, Vroom? What's Lexus's tagline? Drive like no one else? No, that's Dave. And just because I'm winning so hard right now, let's look at the scoreboard. George, three, naysayers, still zero. Next on the list, the 2004 Toyota Avalon. The Avalon is basically a stretched Camry with some more upscale features. Now, I know this car looks about as outdated as a phone book and a blockbuster,

but back in her prime, and this beauty was downright luxurious. It was easy to get in and out of. It's got huge windows in the back seat, super comfortable. Consumer reports that the ride quality is smooth, though handling is, quote, considerably less than athletic, which is exactly how my t-ball coach described me to my parents when he cut me from the team. And that's why I'm a YouTuber now.

That's just sad. Okay, let's see if I can find an 2004 Avalon for under $5,000. 2004 Toyota Avalon. Looky there. We found one, 180,000 miles, $4,000. We got one as an XLS, which just sounds fancy for under $5,000. So those are our two options. Not bad, ranging from 180,000 to 225,000 miles, still kicking, still just crushing the game in that beautiful silver spruce metallic color. Let's get that score up, George four, naysayers,

zero. Who says I don't win at anything in life? That's what your mom says. Okay, before we move on, I want to tell you about something else that's affordable and reliable. And that is TELO, a mobile service provider designed to save you money. They are redefining the industry with affordable phone plans that get you the same reliable coverage and features as the Big Dogs. And right

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Razor, which it's probably time to upgrade in that case. And TELO pricing starts as low as $5, up to $25 a month for the Unlimited Everything Plan, which includes 35 gigs of 4G-L-L-T-E, 5G high-speed data, IYKYKYK. And here's the cool part. You're in control of your phone plan. There's no contract, no blood oath, nothing. So you're free to upgrade or downgrade whenever you want. And for a sweet deal, go to tello.com slash George or click the link in the description

to get $5 off TELLO's unlimited data plan for your first month. That's telo.com slash George. Next up on the list of reliable cars under 5K is actually an SUV. And it's the 2004 Toyota RAV4. This car came out the same year as Shrek 2, Gmail, and the aforementioned Motorola eraser. What a year. I wish there was a way to know you're in the good old days before you've actually left them. And much like me, the RAV4 is small but easy to maneuver in tight spaces.

And the interior is like a transformer. The rear seats can be folded, tumbled forward, or completely removed. It's got a pretty good fuel economy, too. you'll get about 21 miles per gallon with that 161 horsepower four-cylinder engine. One thing to note, there is no rear bumper. So be careful backing that thing up when you put it in reverse. Terry knows what's up. What in reverse, Terri knows what's up.

Okay, let's see if I can find an 04-Rav-4 for under 5K on the internet. 2004, Toyota, RAV-4. Five results. But I couldn't find one under $5,000. The cheapest one out there, isn't a hot car. apparently, $5,900. Close, but to be fair, not under $5,000. And another one for 5,900, 169,000 miles on it.

But here's another one, 117,000 miles on it, four-wheel drive, under $6,000. Not bad. But to be fair, let's pull up that scoreboard. George, four, naysayers, won. Majority rules, I win. Victory! So this goes to show that you don't have to pay out the tailpipe

for a reliable used car. Out of this list, I was able to find most of them for sale in real life for less than $5,000. And before you come at me in the comments again, going, yeah, well, cars are more expensive where I live, and I can't find any of these here. Hold your horsepower, Bucco. Think about it this way.

Let's say you live in Ding Dong, Texas. Real place. And you find a great vehicle for 5K, but it's in Finger, Tennessee. Yes, again, real place. You're not out of options here. Maybe you find a cheap flight to Memphis for around $200, buy the car,

and drive it back to the Lone Star State, and then you're still only paying $5,200 for a reliable used car. Plus, in your way home, you can stop in Georgetown, Texas, to see the statue of three-legged Willie. Not sure who he was and not sure I want to know, truthfully. The disrespect is real around. And if flying isn't an option and you can't drive there, you can also look into shipping the car. This can cost anywhere from a few hundred bucks, up to a thousand bucks or more, depending on where the car is and where you live,

but it can be a great option if you can't travel. My point is, don't let a little distance stop you from saving a lot of money. It might be worth it to look for cars outside of your local area. But here's the key. Make sure you get the car checked out by a trusted mechanic, and if there's any recalls on the vehicle, make sure those problems have been addressed. And by the way, I'm not saying everyone should go drive a 20-year-old car with 300,000 miles.

If you want to drive something newer than that, that's fine, but you've got to pay cash for it. And the reason I say this is because auto loans are a colossal waste of money and the worst way to pay for a car. So avoid them at all costs. If you can't pay cash for it, you can't afford it. So while an 05 Camry may not be your dream car, it may be what you need to drive temporarily while you save up to upgrade to a vehicle you really want. That's what I did, and it's one of the keys that I used to build wealth.

Now, if you want to know why auto loans are so terrible, check out this video to see how they're keeping a lot of Americans totally broke. Thanks for watching. We'll see you next time.