With a move to Washington DC on the horizon, transportation is top of mind. Beijing has about the best public tranportation in the world, something Washington DC will struggle to compete against. So Mr. FIRE Power is in the market for a FIRE-powered vehicle. 

Ranking expenses for the average American household, transportation comes in at spot number two, second only to housing. The average American household spends $9,576 on transportation each year. That’s a fairly high amount. 

What is my current cost of transportation in Beijing? Lets break it down. Outside of work, I occasionally need taxi to deliver me about town. This is a very infrequent expense, but it adds up quickly. Lets look at those costs for the first half of the year.

The other big expense is my monthly Mobike subscription. Mobike is a Chinese dock-less shared bike platform. It is obnoxiously cheap. The cost for unlimited rides is $39.43 per year. I take a Mobike to and from work every day and many times on the weekend. Conservatively, I reckon I take around 500 rides each year. That breaks down to 7 cents a ride. Not too shabby. I’ve biked 2862 kilometers since the company’s inception two years ago. 

Thankfully Beijing is fairly dry, but if it rains, or if I need to be at the embassy, I tend to take the subway. I don’t ride it frequently, but lets take a look at the month of April. In April I rode the subway 6 times for a cost of $3.71. Lets bump that up to an average of $4 just for rounding purposes.

I will omit the costs of shoes, though I do walk a fair amount. So lets take a look at Mr. FIRE Power’s total monthly and annual transportation cost. 

I spend an average of $25 each month–or $303 annually– on transportation in Beijing. 3 percent of the average American.

That cost is so low for a couple of reasons. (1) I live downtown in an urban area, (2) I consciously avoid the cost of paid transportation where possible, and (3) biking is my main form or transit and the cost of the program is uncharacteristically low. It cost me more to ride a Citi Bike in New York City for a day than it did to ride unlimited Mobikes for a year. 

So why do transportation costs take up such a large proportion of the average American’s salary? The reason is simple: automobile ownership.

Owning a vehicle costs a lot of money. You have to purchase it, service it, fill it with gas, and spend time inside of it. And lets be honest, the average American probably owns more vehicle than they need or can realistically afford. As a result, they get hit by the interest charges for borrowing to buy something out of their price range.

I will be moving to a American urban center, but work is located in one of the most expensive districts in town. I may need to live a ways outside the city center which could mean a daily vehicle commute. Unlike Beijing, nature also exists in the fringes of the city, I hope to use the vehicle to indulge in that new luxury.

The contenders

And so we get to to the point of today’s post, choosing the FIRE Power Chariot. Lets take a look at the criteria. 

• Cost: I plan to purchase the vehicle with cash, so I want to keep the purchase price reasonable. You should never spend all your money on a car, or worse, more than all your money if you take out financing. The budget is $5,000-$6,000.
• Reliability: Limiting vehicle service is a priority. I’ll change my own oil and plan to rely on the kindness of a certain mechanic pal for the little things, so finding a vehicle with excellent reliability will keep costs down long term.  We’ll use Consumer Reports to assess reliability.
• Model year: Related to reliability above, the newer the car the fewer problems its likely to have (unless you buy a Alfa Romeo, ugh). I’m aiming to find something no older than 8 years. 
• Fuel economy: This is the fee for using a vehicle, so maximizing the miles per gallon with keep this cost low. 

Ok, with these criteria in mind, lets take a look at some options.

Toyota Corolla

The Toyota Corolla is a reliable little subcompact vehicle made by Toyota. I tested one out in college. Beyond the yawn-inducing handling; the Corolla delivers a comfortable ride with a relatively quiet, spacious interior (for a compact). It also boasts a commendable combined 32 miles per gallon. It is among the most reliable vehicles on the road and easily exceeds a 200K mile lifespan. The model year we’re looking at unfortunately did not come equipped with a hatch back, so interior space is somewhat limited. Truly a FIRE-friendly option.

• 2009-2013 model: $5,000-7,000

Honda Civic

The Honda Civic is one of my all time favorites. After test driving that Corolla in college I dropped in on the Honda dealer and drove the Honda Civic SI. I immediately fell in love. Alas, the SI trim is out of the budget. What we’re looking for is something in the 2006-2011 range. That model year returned 28 miles per gallon overall with the five-speed automatic and 31 mpg with the slick-shifting manual (though Mr. FIRE Power’s girlfriends might not appreciate that). These bad boys suffer from noticeable road noise, but definitely a contender. 

• 2011 model: $5,000-$9,000

Honda FIT

Now we’re getting into the luxury FIRE vehicles. The FIT is the FIRE SUV. Terrific for urban areas, the graceful roller-skate not only boasts a combined 30 miles per gallon, it also has a few storage tricks up its sleeve. The back seats fold down near flat to accommodate a wide variety of gear, groceries, and other supplies. It’s as reliable as a stone and has a solid following. FIRE stamp of approval. 

• 2009-2013 model: $5,000-$10,000

Toyota Rav 4

The RAV4s is the only true SUV on this list. Like the other options, it is extremely reliable. Because of its larger size and engune, it only manages about 24 miles per gallon. Rear seats are a little larger than the other options and the cargo area is comparatively cavernous. Overall, probably the best choice if we’re looking for something other than a car, though you pay for it in gas mileage.

• 2006-2012 model:$6,000-$14,000

Conclusion

I think I’m leaning toward the Honda FIT or the Rav4. An old college pal runs a used car dealership so has offered to keep an eye on the auctions for me and will snap one up for me. We’ll circle back to close the loop.