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 once I was a university sophomore and he was stationed in Guangzhou, China for the U.S. Overseas Service.
I’ve identified this automobile almost so long as he has, and for greater than half my life, I’ve pushed it throughout my visits dwelling. Certain, it drives like a ship and shakes once I hit the brakes on the freeway, but it surely reliably will get my household across the island.
Not Getting a New Automotive After 10 Years After All
I as soon as deliberate for summer season 2025 to be the 12 months I’d lastly improve my journey. I all the time believed the splendid time to exchange your automobile is when it hits about 10 years outdated—lengthy sufficient for security and know-how enhancements to kick in, which is essential if you’re transporting your loved ones.
But, after spending time behind the wheel of my dad’s outdated Toyota in Hawaii, I returned to my very own automobile in San Francisco feeling like I used to be driving a brand-new luxurious vehicle!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 superb by comparability. It handles easily, the steering is tight, and there’s no annoying shake once I brake.
The Vary has Bluetooth for tunes, a backup digicam that beeps when one thing will get too shut, and even twice the horsepower of my earlier journey. 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 superb once more given its age.
If my dad’s automobile may final 28 years, I’m assured my Vary will simply final not less than one other 5 years, for 15 years complete.
New Automobiles Are Simply Approach Too Costly
I’ve checked out a number of new luxurious automobiles corresponding to my Vary Rover, and each certainly one of them prices between $115,000 and $170,000. Perhaps I’m a bit nostalgic, however immediately’s new luxurious automobile costs appear completely absurd in comparison with the $60,000 I paid after tax. Although 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 automobile feels fully off.
So, the logical different is to stay with what I’ve. I’ve additionally thought-about extra budget-friendly choices, just like the totally 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 need to tack on chains in snowy situations on our technique to Lake Tahoe. No thanks.
The subsequent possibility I checked out was the brand new Honda CR-V, which runs about $42,000 totally loaded (roughly $46,500 after tax). Whereas that is perhaps acceptable for somebody with out a automobile, I have already got a wonderfully nice household automobile. And to be frank, it appears like a steep downgrade, once I’d prefer to get pleasure from nicer issues in my older age.
Used And New Automotive 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 chance of a recession forward. Luxurious automobile costs are more likely to take successful as extra house owners unload pointless automobiles. On the similar time, new automobile costs might even see extra reductions as stock continues to rise.
Beneath 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 customers can get higher automobile offers between 2026 – 2027.
Lately Spent a Bundle on Automotive 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 date, the concept of promoting my automobile to purchase a brand-new one simply doesn’t make sense.
If I had been to eliminate my automobile, I ought to have performed it earlier than reaching 50,000 miles and earlier than these bills started to pile up. Now that I’ve had these repairs performed, 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 Automotive
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. The truth is, 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 liked 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 aim, which is why I respect the tinted home windows.
Lastly, if my outdated automobile can final one other seven years, it’s going to be good for instructing my son the way to drive. Hopefully, he received’t crash it—but when he does, its bigger measurement ought to present some additional safety. Plus, by then, it received’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 nasty 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 correct, I would splurge on the greatest automobile I can afford whereas my children are nonetheless dwelling with us.
Ultimate Reflection: Preserve Your Previous Automotive For Longer
Driving my dad’s outdated beater made me understand that typically the very best resolution 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 properly and nonetheless has loads of life left in it, and that reliability is value greater than chasing the newest mannequin.
In a world the place new automobiles are prohibitively costly and fixed upgrades could also be extra about standing than performance, holding on to a well-maintained automobile is a brilliant, financially savvy transfer. Let a automobile’s depreciation be just right for you by getting your Home-To-Automotive Ratio as excessive as potential, if you wish to obtain monetary independence sooner.
Though I’ll say, automobile procuring is without doubt one of the most enjoyable issues I’ve loved as a child and grownup, primarily because of the check driving. That might be a enjoyable father son, father daughter bonding expertise sooner or later. Nevertheless, I am hoping by the point my children are capable of drive, they will not resulting from safer, self-driving automobiles.
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 extra money you’ve got, the extra freedom you’ll need to stay 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 focus on a number of the most attention-grabbing subjects on this website. Your shares, rankings, and critiques are appreciated.
To expedite your journey to monetary freedom, be part of over 60,000 others and subscribe to the free Monetary Samurai e-newsletter. 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.
