This is an easy one. Unless you are a car fanatic and willing to delay your escape from the office, the answer is simply "as little as possible".
Cars depreciate, they break, and they require maintenance and insurance. The 'more' car you have, the more each of these is likely to cost.
My rule of thumb would be to pick the least expensive vehicle that can do what you need it to do 90%+ of the time.
So, if you live in a large city with good public transit or bike routes, but need to get somewhere by car once a month, renting a car when you need it (there are discounts available for weekend use, as well as loyalty programs, plus with the right credit card you'll be insured through the card company rather than having to take out separate insurance), and using that public system the rest of the time probably makes sense. If you live, or need to get somewhere, out of the way regularly, then move on to the next option. Going car free will save you an absolute ton of money.
If you must have your own wheels, then pick the option that comes out cheapest. If you don't do a lot of miles, picking the least expensive to *insure* is likely better than going for better fuel efficiency - I'm talking about 'grampa cars here' folks. Sexy? Mm, no.. but probably cheap to fix, spacious and quite luxurious, and often low mileage. Buicks, for example. Town Cars. Thanks, grampa!
If you commute a fair distance, then fuel efficiency is the way to go. Manual transmissions are usually more efficient (plus cheaper to maintain and repair), and (in my opinion) more interesting to drive. But also, *how* you drive is important. Gently, dear reader, is how to drive to save money. Braking is like throwing money out the window - allowing the car to decelerate naturally, and accelerating modestly, leaving space enough between you and the car in front will save you a packet over time, both directly (fuel) and indirectly (wear & tear).
If you have a family of four, there is nothing wrong with a Honda Civic or Toyota Corolla. Once you get up to five, a minivan may be required - but again, check your options. We were able to fit three children in car seats across the back of my Crown Victoria quite happily - and we could fit three adults in the front if we needed to.
Honestly, even if you have three children, how often would you be overloaded in a mid/large sedan? If not often, look into a trailer hitch rather than a big ole' minivan. A trailer provides an awful lot of flexibility, and when you don't need it - you don't pull it!
Get mulch or gravel? You can do that in a trailer. Move furniture? Yup - you don't need a truck.
I mentioned in my first post that I think trucks are cool. I do. My grandparents were farmers, and I'm into small-scale organic growing, so hauling around manure in the back of my vehicle? Cool! (But as I said above, I have a Crown Vic and a hitch). The number of trucks driving around with literally nothing in them but one person is really sad to me - where I live, maybe 1/3 of the vehicles are trucks, and probably 80% of them are empty (finger in the air guesstimate!). *Everything* is more expensive - tires, fuel... no, I guess insurance can be pretty good. Ok. Everything but insurance.
When should you buy a truck? When you need it, of course. If you 'do stuff' in your truck that only the truck can comfortably do - hauling masses of stuff. Contractors - lawn care, etc. I don't need to tell the people who need trucks to get trucks - they know damn well they need it. But everyone else..? Well.
This blog is about early retirement. I'm not saying you can't have a truck. I'm saying that, for most people, it is a truly horrible choice all round - if they want to get out of debt, save and invest, and retire.
Ok, so - the least vehicle you can that does what you need it to. In my opinion, the hatchback is far superior to the sedan. Cars like the Toyota Matrix or Pontiac Vibe are an excellent configuration for the average family, and would be my starting point when looking to find what fits. The fuel economy is pretty good, though not the best (equivalent Corolla is slightly better); but in exchange, you get a nice hatch, fold-down seats with a huge amount of room.
If you do few miles, a Buick Century in good condition (GM 3800 engine) will serve well. For long distance commuters, a diesel probably makes sense, though it would make more sense to reduce the commute.
Now - in order to get best value, you're not going to buy new. 0% deals are not really 0% financing - the cost of the financing is simply built in to the price you pay (ie, if you pay cash, it will be less than the 0% financing price). Cars depreciate like mad in the first few years.
If you absolutely hate cars, car maintenance, and so on, a gently used, certified three year old car will be much better value than a new one and almost as good. Otherwise, a ~6 year old vehicle is a good age to aim for - the rapid depreciation has all happened. Obviously, get a good inspection before you buy, but there is nothing to be 'afraid of' with older vehicles, if they have been maintained well. *Any* modern car should go to 300k km at an absolute minimum. I'm talking 2000 and newer.
Personally, I think $5k is a good price. You are not getting 'end of life' cars here. Aim for 200k km or fewer, and you have a *lot* of life left in a vehicle.
Do check the model and year at car complaints though, and avoid any with specific problems - but remembering that if a certain year has, say, a faulty automatic transmission, you can buy the manual quite happily!
Good luck!
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