Background
Most of us have been there at least once... Whether it was to get through extra study, buy a house, set up a business, support offspring to pursue a dream or cover big medical bills, there are times when we all need a cheap car to get on with the job and not cost us the earth.

There was a time when you could buy a good used VW Beetle, an unwanted Datsun 120Y or a tidy Holden HR for peanuts and get away with not allocating the national debt to keep them on the road. If only it was still that simple...

Simplicity remains the operative word and running a car on next to nothing can still be done. While modern cars are incredibly reliable and generally maintenance-free compared to even 20 years ago, most have a use-by date when everything starts to go wrong.

Few parts in modern cars are designed to be dismantled and repaired. There is a clear point which is surprisingly consistent from model to model when an owner is forced to make a choice between replacing a major component or scrapping the whole car. This situation can be accelerated when the manufacturer no longer stocks parts and there are not enough in the recycling yards to keep you on the road. The key to cheap motoring is to find a way around these factors.

If you are on a tight budget of less than $10,000, there are two strategies that have worked for me:

• Buy the cheapest and best car possible under $2000, spend as little as possible to keep it safe and reliable, then move it on while it still has some life left in it or throw it away as soon as something big goes wrong.
  
  
• Buy the best possible used example of a known reliable model, or save even more if it is underpriced for image reasons, maintain it properly and keep it for a 10-year period.
  

The first strategy is high risk when it depends on someone having the necessary skills to assess how much life is left in the vehicle before purchase. There is an upside. If it has to be scrapped within a year under the worst case scenario, you can only lose $2000 and even then you might get something back for the plates and a couple of hundred from the recycling yard. Compared to the $5-10,000 that most new cars lose in their first year, you could do much worse.

Some years ago, a tidy example of an early Toyota Corolla panel van cost me less than $200 per year in depreciation and maintenance over three years when I was saving for my first house. It wasn't such a bad option for a young single bloke either when I could sleep in it and carry renovation materials after I had bought a house. For someone in the same situation today, a tidy example of a Mitsubishi Express/Toyota Lite Ace/Nissan Vanette van can generate the same scenario for even less money in relative terms.

The second strategy makes more sense if you can't afford to be off the road at short notice to look for another cheapie. The most sensible choices identify themselves very quickly once you start defining the qualities required in a low-cost "keeper":

• Plenty of other examples on the road guaranteeing a cheap and plentiful parts supply as your example gets older
  
  
• Value for money determined either by outstanding longevity OR a poor image that brings a newer example within reach for less money
  
  
• A wide choice of high-quality non-genuine parts that keep the cost of genuine parts affordable
  
  
• Doesn't require specialist knowledge, tools or computers for servicing so you can service it yourself or take it to a wider choice of service centres OR it attracts a keen band of specialist repairers who love the car enough to arrange their own parts supply and keep it on the road cheaply
  
  
• Paint, panels, trim and glass are easily repaired or replaced by everyday repairers
  
  
• Reasonable fuel economy but not at the expense of big maintenance and parts bills
  
  
• Relies on basic electronics only with few electronic accessories to fail
  
  
• Has good parking-lot crash protection
  
  
• Requires only basic tyres in the most common sizes
  
  
• Easy to work on
  
  
• Cheap to insure
  
  
• Cheap to purchase secondhand so there is less to recover when it is time to bale out
  
  

A Budget Buyer's Under-$10,000 Choices

1994-99 Toyota Corolla CSi Seca/Holden Nova hatch/sedan
Why? It was the last locally assembled Corolla and therefore the last locally manufactured small car. This means it was more rugged than most of its imported rivals and ensures a good supply of local parts. Local paint and trim are simple, rugged and easily repaired. The large number of high mileage used examples including rental and fleet cars means that most repairers have already encountered the worst faults and know exactly what to expect and how to fix them. This also ensures a good supply of changeover and used parts. Because it is so widely recognized as the benchmark in cheap transport, used values are inflated. However, if you look after a good one there will always be someone wanting to buy it further down the track for a healthier price when it is time to move on.

1991-93 Holden VP/VP Series II Commodore/Toyota Lexcen
Why? By the VP series, Holden had knocked off most of the VN's rough edges as build quality and refinement improved. It was also the last simple Holden with cheap, minimal electronics and basic hydraulic automatic transmission operation. The Buick V6 was also surprisingly economical for such a powerful engine and long-lived. There are some really good ones hitting the market as older owners downsize. The light body shell is not the safest for a crash and the basic live axle rear end can make it a real handful in the wet but drive it sensibly, look after it and it will treat you well. Theft is the main worry so invest in a decent security system. Unlike later models, trim and paint are easy to freshen-up. Parts are cheap, body repairs straightforward and neat styling doesn't leave it looking too old despite its age.

1997-2000 Toyota Camry CSi 2.2 four/3.0 V6 sedan
Why? Assembly glitches and some silly parts failures of earlier Camry models were well and truly behind this model. It hasn't dated and is pleasant and easy to drive. It was one of those models where everything came together after Toyota kept refining the same formula and proven mechanicals. Because so many government fleets bought them and image slaves see them as boring, their used prices are not as high as you would expect. Don't walk past a nice V6 example because of fuel prices -- under most conditions it will match the four's fuel economy and better it under some high load usage. Again, local manufacture and high volumes keep spares and repairs affordable.

2000 Ford AU Falcon Forte
Why? Two years after its 1998 launch, the AU Falcon's teething problems were behind it but the AU's poor image will now pull the last of the first series below the $10,000 mark. Taxi companies wished Ford stopped at the AU when it was the ultimate refinement of the simple and rugged Falcon formula. There are still many cash-strapped drivers still dependent on the bulletproof mid-1980s XF Falcon and the AU is set to do it all again. It had the cheapest low-speed crash repair costs of any car up to that point, crash safety was good, Ford's new paint and trim were long-wearing, there was a fold down back seat and the engine was the only one available at the time assured of covering huge distances regardless of whether it was run on petrol or LPG. The local auto is the cheapest to repair and apart from front brake wear, a well-maintained AU just goes and goes.

2000-01 Mitsubishi TJ Magna
Why? Constant talk of Mitsubishi pulling the pin in Australia killed resale of the Magna, none more so than the outstanding TJ series. Remember when Nissan closed its local factory in 1992? Pintaras and Skylines were not suddenly abandoned in the streets because owners could not get parts for them. On the contrary, their local manufacture ensured a better parts supply than many low volume imported models which is why so many 20-year-old Nissan Pintaras and Skylines are still on the road compared to their imported rivals. The big numbers of locally built 1996-2005 Magnas on Australian roads with local content at least as high as any Holden will ensure a long and steady future for used Magnas as budget family cars. They are also much better and newer than anything costing $10,000 or less has a right to be.

1995-98 Nissan N15 Pulsar LX hatchback
Why? The fickle style-police rank the half-hatch, half-wagon style of this Pulsar series somewhere behind the Corolla Seca, Mazda 323/Ford Laser and Holden Astra. This generates a considerable saving for one of the most reliable, most frugal and most practical of the small hatches from this era. After Nissan replaced the Holden-sourced Family II engine in 1991 with its own 1.6-litre engine, it was steadily refined into one of the best performers for its size. Imported build quality while good could not hide some cost-cutting but the fundamentals are spot-on.

1998-2000 Hyundai Excel Sprint three-door hatchback
Why? Cheap new means cheap used. Long term warranty of later examples forced owners to get them serviced so they are a better longer term proposition. Earlier examples were too often driven without servicing then thrown away when they died which is now an option if you are really strapped for cash. The cost cutting is obvious -- you pay less for less car but it will do the job providing you don't expect it to match the better Japanese cars in refinement or crash safety.

1996-99 Toyota Starlet Life three-door hatchback
Why? A cramped, miserly little car in base spec that looks and feels even cheaper than a Hyundai in some areas but the mechanical bits are as good as they come at any price. Frugal, reliable, willing and often well-cared for by owners who bought them for the long haul.

1991-92 Volvo 240GLE sedan
Why? The only European that qualifies as cheap transport in this price range when it was the last of a simple and amazingly long-lived series. Any increases in running costs are more than offset by the big margin in safety. Because it has its origins in the mid-1960s, many of its parts systems can be dismantled and repaired. It was also locally assembled for many years so there are alternative parts supplies and a choice of specialist repairers who can keep them going for much less than most Europeans. There is even a good chance that if carefully looked-after, it will hold its value as there are many Australians who get quite sentimental about this definitive Volvo series.

Tips for low cost long life

• It is becoming increasingly apparent globally that today's long service intervals might be a great idea for the car's original owner but not so clever for anyone who needs to keep a car longer than five years. The general advice is not to let an oil and filter change go beyond 7500 kms or six months if you don't want your engine to become a sludged-up, rattling throwaway item.
  
  
• Nearly all modern cars have alloy cylinder heads or combination plastic and aluminium radiators that need the costant protection of fresh coolant to avoid major overheating damage or a blown head gasket.
  
  
• Make sure your car does at least one 20 minute trip every week in daylight to keep the battery charged, the exhaust system dry and to burn off the contaminants that collect in the oil.
  
  
• Brake and clutch fluids need changing every two years or 40,000km, whichever comes first. Not doing this will generate major brake or clutch repair costs that can kick in from when a car is five years old. Even if the brakes or clutch are hardly worn, dirty fluid can generate repairs of up to $2000 by the time you replace master cylinder, caliper seals, slave or wheel cylinders and rear linings destroyed by dirty and leaking fluid.
  
  
• All automatic transmissions need a service and a check every two years; some say annually. They are a service item like any other component with filters and fluid that need to be kept clean and fresh.
  
  
• Replacing a battery before you are left stranded on the road will allow you to buy the right one from a battery expert at the right price. 'Heavy duty' is a meaningless term in the battery industry. For very little extra outlay, buying a better battery can deliver an extra five years in battery life.
  
  
• Don't skimp on filters and spark plugs when they can make a big difference in fuel economy.
  
  
• Don't ever let the fuel gauge drop below a quarter. The water and rubbish floating in the fuel tank can get sucked through and destroy costly fuel pumps and injection components if the level drops too low. Most modern cars also rely on the fuel in the tank to keep vital fuel system components cool. When the fuel is low, it heats up, reduces economy and is no longer able to cool parts that can cost up to $700 to replace when they overheat.
  
  
• Never use your car to jump start another without the latest battery cables that contain surge protection. A spike from the other car's failed battery or electrical system may not kill your car's electrical system immediately but can set off a chain of failures that will start within six months and continue over the life of the car.
  
  
• As soon as the alternator charge warning light shows, get it checked immediately. A faulty alternator sending intermittent spikes through your car can destroy thousands of dollars worth of electrical parts and again, not always immediately.
  
  
• Drive smoothly, anticipate the traffic and let the impatient pass you. You will meet them again at the lights anyway. Smooth driving can deliver tyre and brake life of up to 70,000km and a big improvement in fuel economy in most modern cars.

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