Whereas visiting my dad and mom in Honolulu this previous winter, I ended up driving my dad’s 28-year-old beater for eight days. He purchased that Toyota Avalon new in 1997—again after I was a school sophomore and he was stationed in Guangzhou, China for the U.S. International Service.
I’ve recognized this automobile practically so long as he has, and for greater than half my life, I’ve pushed it throughout my visits residence. Positive, it drives like a ship and shakes after I hit the brakes on the freeway, but it surely reliably will get my household across the island.
Not Getting a New Automobile After 10 Years After All
I as soon as deliberate for summer season 2025 to be the 12 months I’d lastly improve my experience. I at all times believed the excellent time to interchange your automobile is when it hits about 10 years outdated—lengthy sufficient for security and know-how enhancements to kick in, which is essential once you’re transporting your loved ones.
But, after spending time behind the wheel of my dad’s outdated Toyota in Hawaii, I returned to my very own automobile in San Francisco feeling like I used to be driving a brand-new luxurious vehicle!
My present automobile—a 2015 Vary Rover Sport HSE that I purchased in December 2016, simply earlier than my son was born—feels wonderful by comparability. It handles easily, the steering is tight, and there’s no annoying shake after I brake.
The Vary has Bluetooth for tunes, a backup digital camera that beeps when one thing will get too shut, and even twice the horsepower of my earlier experience. The paint remains to be shiny, and the tires boast about 80% tread remaining. There’s even leather-based seats, that are beginning to odor wonderful once more given its age.
If my dad’s automobile might final 27 years, I’m assured my Vary will simply final a minimum of one other 5 years, for 15 years whole.
New Vehicles Are Simply Means Too Costly
I’ve checked out a number of new luxurious autos corresponding to my Vary Rover, and each considered one of them prices between $115,000 and $170,000. Possibly I’m a bit nostalgic, however right this moment’s new luxurious automobile costs appear totally absurd in comparison with the $60,000 I paid after tax. Regardless that I’ve been diligently saving and investing in a brand new automobile fund for 9 years, the considered shelling out six figures after taxes for a brand new car feels utterly off.
So, the logical various is to stay with what I’ve. I’ve additionally thought of extra budget-friendly choices, just like the absolutely loaded Honda Civic for about $28,000, but it surely’s too small for our household highway journeys and lacks options like four-wheel drive—that means I’d must tack on chains in snowy situations on our approach to Lake Tahoe. No thanks.
The following choice I checked out was the brand new Honda CR-V, which runs about $42,000 absolutely loaded (roughly $46,500 after tax). Whereas that is perhaps acceptable for somebody with no automobile, I have already got a wonderfully advantageous household automobile. And to be frank, it looks like a steep downgrade, after I’d wish to take pleasure in nicer issues in my older age.
Used And New Automobile Costs Ought to Proceed To Come Down
One other issue I am contemplating is the gradual decline in common used automobile costs, particularly with the risk of a recession forward. Luxurious automobile costs are more likely to take a success as extra house owners dump pointless autos. On the similar time, new automobile costs may even see extra reductions as stock continues to rise.
Under is a good chart from the St. Louis Fed displaying how used and new automobile costs peaked in 2022 and have been trending downward since, with stock steadily growing. Subsequently, I count on shoppers can get higher automobile offers between 2026 – 2027.
Lately Spent a Bundle on Automobile Upkeep
Over the previous two years, I’ve invested roughly $5,400 in sustaining my Vary Rover, which has round 61,000 miles on it. Right here’s a fast rundown:
- New battery: $500 (2024)
- Two new 22-inch tires: $825 (2024)
- Water pump: $1,250 (2024)
- Vacuum pump and PCV valve: $1,050 (2024)
- Oil change service: ($199, January 2025)
- Brakes and rotors ($1,600, Jan 2025)
- Heater manifold: $1,025 (potential value perhaps in April 2025, however the coolant is not leaking anymore)
Happily, my mechanic is only a one-mile stroll from my home, so dropping off the automobile for upkeep isn’t a problem. After $5,400 in repairs and maintenance to this point, the concept of promoting my automobile to purchase a brand-new one simply doesn’t make sense.
If I have been to eliminate my automobile, I ought to have accomplished it earlier than reaching 50,000 miles and earlier than these bills started to pile up. Now that I’ve had these repairs accomplished, I count on my Vary to be in nice form for an additional 5-10 years or 60,000 miles.
The Pleasure of Driving a Nicely-Worn Automobile
After 9 years of driving my 10-year-old automobile, I’ve grown accustomed to its quirks—very similar to my father’s steadfast 1997 Toyota Avalon. Each time I head to the grocery store, I really feel no stress about door dings. In truth, when a brand new ding seems, I simply see it as one other character mark on a automobile that’s been a dependable a part of my life.
I additionally love that because the automobile ages, it attracts much less consideration. I purchased my Vary as a result of I cherished its look and efficiency—ever since I used to be a middle-school child in Malaysia, I’ve been a fan of Vary Rovers. And attracting consideration isn’t my purpose, which is why I recognize the tinted home windows.
Lastly, if my outdated automobile can final one other seven years, it’s going to be excellent for educating my son how you can drive. Hopefully, he gained’t crash it—but when he does, its bigger dimension ought to present some further safety. Plus, by then, it gained’t be a lot of a monetary loss both.
Hmm, now that we’re speaking about security, perhaps upgrading to a safer automobile sooner isn’t a foul concept. On the very least, I ought to wait one to a few years for used costs to drop because the financial system slows. When the time is true, I would splurge on the greatest automobile I can afford whereas my youngsters are nonetheless dwelling with us.
Closing Reflection: Maintain Your Outdated Automobile For Longer
Driving my dad’s outdated beater made me notice that generally one of the best choice is to stay with what works. As a substitute of spending a ridiculous sum on a brand-new automobile that won’t drive any higher, I’ll save and make investments my cash. My RR Sport has served me effectively and nonetheless has loads of life left in it, and that reliability is value greater than chasing the most recent mannequin.
In a world the place new vehicles are prohibitively costly and fixed upgrades could also be extra about standing than performance, holding on to a well-maintained car is a brilliant, financially savvy transfer. Let a automobile’s depreciation give you the results you want by getting your Home-To-Automobile Ratio as excessive as doable, if you wish to obtain monetary independence sooner.
Though I’ll say, automobile buying is without doubt one of the most enjoyable issues I’ve loved as a child and grownup, primarily because of the check driving. That could possibly be a enjoyable father son, father daughter bonding expertise sooner or later. Nonetheless, I am hoping by the point my youngsters are in a position to drive, they will not on account of safer, self-driving vehicles.
Subscribe To Monetary Samurai
If you wish to grow to be a millionaire, seize a duplicate of my new ebook, Millionaire Milestones: Easy Steps to Seven Figures. I’ve distilled all the things I’ve discovered over the previous 30 years of working and writing about finance that can assist you construct extra wealth than 90% of the inhabitants. The more cash you have got, the extra freedom you’ll must dwell life in your phrases. You should purchase a duplicate on Amazon or wherever you purchase books.
Pay attention and subscribe to The Monetary Samurai podcast on Apple or Spotify. I interview consultants of their respective fields and talk about among the most attention-grabbing subjects on this web site. Your shares, rankings, and evaluations are appreciated.
To expedite your journey to monetary freedom, be part of over 60,000 others and subscribe to the free Monetary Samurai publication. Monetary Samurai is among the many largest independently-owned private finance web sites, established in 2009. Every thing is written primarily based on firsthand expertise and experience.
