While visiting my parents in Honolulu this past winter, I ended up driving my dad's 28-year-old beater for eight days. He bought that Toyota Avalon new in 1997—back when I was a college sophomore and he was stationed in Guangzhou, China for the U.S. Foreign Service.
I’ve known this car nearly as long as he has, and for more than half my life, I’ve driven it during my visits home. Sure, it drives like a boat and shakes when I hit the brakes on the highway, but it reliably gets my family around the island.
Not Getting a New Car After 10 Years After All
I once planned for summer 2025 to be the year I’d finally upgrade my ride. I always believed the ideal time to replace your car is when it hits about 10 years old—long enough for safety and technology improvements to kick in, which is crucial when you’re transporting your family.
Yet, after spending time behind the wheel of my dad’s old Toyota in Hawaii, I returned to my own car in San Francisco feeling like I was driving a brand-new luxury automobile!
My current car—a 2015 Range Rover Sport HSE that I bought in December 2016, just before my son was born—feels amazing by comparison. It handles smoothly, the steering is tight, and there’s no annoying shake when I brake.
The Range has Bluetooth for tunes, a backup camera that beeps when something gets too close, and even twice the horsepower of my previous ride. The paint is still shiny, and the tires boast about 80% tread remaining. There's even leather seats, which are starting to smell amazing again given its age.
If my dad’s car could last 28 years, I’m confident my Range will easily last at least another five years, for 15 years total.
New Cars Are Just Way Too Expensive
I’ve looked at several new luxury vehicles comparable to my Range Rover, and every one of them costs between $115,000 and $170,000. Maybe I’m a bit nostalgic, but today’s new luxury car prices seem utterly absurd compared to the $60,000 I paid after tax. Even though I’ve been diligently saving and investing in a new car fund for nine years, the thought of shelling out six figures after taxes for a new vehicle feels completely off.
So, the logical alternative is to stick with what I have. I’ve also considered more budget-friendly options, like the fully loaded Honda Civic for about $28,000, but it’s too small for our family road trips and lacks features like four-wheel drive—meaning I’d have to tack on chains in snowy conditions on our way to Lake Tahoe. No thank you.
The next option I looked at was the new Honda CR-V, which runs about $42,000 fully loaded (roughly $46,500 after tax). While that might be acceptable for someone without a car, I already have a perfectly fine family car. And to be frank, it feels like a steep downgrade, when I’d like to enjoy nicer things in my older age.
Used And New Car Prices Should Continue To Come Down
Another factor I'm considering is the gradual decline in average used car prices, especially with the possibility of a recession ahead. Luxury car prices are likely to take a hit as more owners sell off unnecessary vehicles. At the same time, new car prices may see more discounts as inventory continues to rise.
Below is a great chart from the St. Louis Fed showing how used and new car prices peaked in 2022 and have been trending downward since, with inventory steadily increasing. Therefore, I expect consumers can get better car deals between 2026 – 2027.
Recently Spent a Bundle on Car Maintenance
Over the past two years, I’ve invested roughly $5,400 in maintaining my Range Rover, which has around 61,000 miles on it. Here’s a quick rundown:
- New battery: $500 (2024)
- Two new 22-inch tires: $825 (2024)
- Water pump: $1,250 (July 2023)
- Vacuum pump and PCV valve: $1,050 (2024)
- Oil change service: ($199, January 2025)
- Brakes and rotors ($1,600, Jan 2025)
- Heater manifold + a couple hoses: ($1,135, March 25, 2025)
Fortunately, my mechanic is just a one-mile walk from my house, so dropping off the car for maintenance is never a hassle. After $5,734 in repairs and upkeep so far, the idea of selling my car to buy a brand-new one just doesn’t make sense.
If I were to get rid of my car, I should have done it before reaching 50,000 miles and before these expenses began to pile up. Now that I’ve had these repairs done, I expect my Range to be in great shape for another 5-10 years or 60,000 miles.
The Joy of Driving a Well-Worn Car
After nine years of driving my 10-year-old car, I’ve grown accustomed to its quirks—much like my father’s steadfast 1997 Toyota Avalon. Every time I head to the supermarket, I feel no stress about door dings. In fact, when a new ding appears, I just see it as another character mark on a car that’s been a reliable part of my life.
I also love that as the car ages, it draws less attention. I bought my Range because I loved its look and performance—ever since I was a middle-school kid in Malaysia, I’ve been a fan of Range Rovers. And attracting attention isn’t my goal, which is why I appreciate the tinted windows.
Finally, if my old car can last another seven years, it'll be perfect for teaching my son how to drive. Hopefully, he won’t crash it—but if he does, its larger size should provide some extra protection. Plus, by then, it won’t be much of a financial loss either.
Hmm, now that we’re talking about safety, maybe upgrading to a safer car sooner isn’t a bad idea. At the very least, I should wait one to three years for used prices to drop as the economy slows. When the time is right, I might splurge on the best car I can afford while my kids are still living with us.
Final Reflection: Keep Your Old Car For Longer
Driving my dad’s old beater made me realize that sometimes the best decision is to stick with what works. Instead of spending a ridiculous sum on a brand-new car that may not drive any better, I’ll save and invest my money. My RR Sport has served me well and still has plenty of life left in it, and that reliability is worth more than chasing the latest model.
In a world where new cars are prohibitively expensive and constant upgrades may be more about status than functionality, holding on to a well-maintained vehicle is a smart, financially savvy move. Let a car's depreciation work for you by getting your House-To-Car Ratio as high as possible, if you want to achieve financial independence sooner.
Although I will say, car shopping is one of the most fun things I've enjoyed as a kid and adult, mainly due to the test driving. That could be a fun father son, father daughter bonding experience in the future. However, I'm hoping by the time my kids are able to drive, they won't due to safer, self-driving cars.
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Your article struck me as to how similar your feelings are to mine regarding our mature automobiles. I have a 2015 Toyota Avalon XLE with about 38000 miles. It is very clean and well maintained with just a few minor door dings and scuffs. Still looks great for its age. I usually plan to keep a car about 10 or 11 years before replacing, but after looking at several vehicles online, I think I will keep mine for a few more years. Part of the reason is how expensive cars have become. I am fortunate to be able to afford a new car, but it just doesn’t seem like money well spent when I have nice comfortable dependable car that serves my needs.
So, my area is /weird/ (there are a whole slew of old Mercedes shops because we had a lot of grey market cars come over in the 80s), but I honestly found the occasional repairs needed for a 560 SEL that was my daily driver from 2016-19 to be cheaper than a lot of “new(er) car repair jobs” and the downtime is less. Fuel consumption is more of an issue, but I think there’s a case to be made that reliable (if ancient) cars are cheaper to keep up than newer ones which have shiny bells and whistles that they refuse to work without (e.g. sensor systems that are “nice to have” but which, if broken, cause the car to refuse to run).
Bought new 2014 Ceramic Blue packed Chrysler 300s for $34k now 90k miles. Zero problems just replaced battery and new tires at 50k miles. The safety package and U connect package still the best on market. Inherited 2009 honda accord in 2014 now 70k miles as with most hondas the ac needs replacement but no other problems. We live in Hawaii 6 months and rent cars. So the cars at home are good for years. Best car ever 33 years company car at power company = large 401k. Fun car 1956 Chevy Belair $200 bought in 1971 during my one year FLA adventure.
I just bought a new car after 16 years of driving the same car after it started costing a lot of time and money on repairs. Hopefully the new Lexus is reliable for another 20 years before I retire. Paid cash no debt and it was actually less expensive than the used BMW I bought and owned for many years.
Love this! As I’ve been spending the last few weeks perusing new cars and thoughts of a sportscar commuter car to go along with my 2019 Subaru Forester (which by the way Subaru is still trying to sell 2024 models!), no longer need to think about this. My Forester is cooler than the new ones on the market & the luxury of a 2nd car, really is a luxury I don’t need to maintain on top of the other car. Nor do I need to replace the Forester I’ve kept up with all maintenance on, is perfect luxury & fits the bill still! I appreciate your posting this as a “reality check”!
I feel the same way. I’m driving a 11 year old Tacoma and am a whitewater kayaker. I don’t have to worry too much about leaving it in random remote areas along rivers, or a branch falling on it at the campground, or someone hitting it while loading kayaks on top. We bought a new 4Runner once and that’s the last new car we will ever buy. Not worth the stress and we don’t drive enough to need the best vehicle around.
I can imagine! Feels good to just throw your gear in your truck and not worry about all the dings. Builds character!
I love the 4Runner…. favorite SUV during high school that one rich kid drove :)
New one coming out in 2025 after the new Land Cruiser! My old neighbor, who is about 35 and still lives at home, bought one. He said he shelled out $110,000 after tax! DAMN.
yikes that is crazy! I rather buy a cheap old reliable work truck for under 10k cash for that sort of thing. My Lexus was a splurge but I did get the Costco discount and no more normal V6 engine after this year so will be good.
It’s awesome you are hanging on to your car longer and continuing to maintain and fix it up. But something needs to be pointed out about maintaining a luxury car like yours…it’s pretty darn expensive. Battery for $500? Oil change for $199? I swap out the battery myself for $110(battery from Costco)…easiest thing to do. Oil change costs $40 for a non luxury car. Maintaining a luxury car costs a ton over its lifetime in addition to the unreliability.
Indeed, not cheap! But based on my income and net worth, it is affordable.
This is why I encourage everyone to follow my 1/10th Rule For Car Buying. If you do, all the maintenance stuff doesn’t feel bad at all.
for me dumping money into my old BMW did not pencil out. Bought new Lexus will hope to get 20 years of reliable driving on the new Lexus ES 350 V6 sedan.
What about an EV? Unfortunately US is barred from getting the best and cheapest EV in the world. Darn…
I bought a used 2021 Chevy Bolt with 10,000 miles on it for 50% off new price. It has been a great car. It’s our main car around town. Fun and easy car to drive around. So inexpensive to charge at home. Very low maintenance.
for me, I wait for power grid/infrastructure to improve first in USA and also battery safety/maintenance longevity. Than would love a reliable and affordable EV truck for hauling junk and camping.
Another great article Sam, I have a 21 year old car and it is great. No issues whatsoever and if someone bumps the car or dents the car I don’t care. All I have to pay for is maintenance and insurance and gas from time to time. I don’t drive too much in early retirement so a car is not a big deal to me.
People spend way too much on vehicles and it is money that could be spent building financial security instead.
We usually buy a few years used for 40% to 50% off new price. Then keep them for 13 to 15 years. I enjoy driving used practical cars. Just traded in a 2010 Ford Flex for a used 2021 Honda Pilot, which we got for 40% off. Only 15,000 miles on it. Planning on keeping this one for 15 to 20 years. But my favorite car is a 2007 Toyota Corolla that I drive every once in a while. Totally love it! Old reliable every time I start it up with a smile.
I haven’t owned a new car in 20 years. I discovered long ago that it’s far more economical to buy 2-3 model year old cars with low (<15K) miles. Depreciation on average brings the price down 40%. I typically own European cars (BMW, Jaguar, Mercedes) and keep them until they’re around 8-10 years old. But keep in mind that once they get over 75K miles they can become ticking time bombs where a single repair can eclipse the value of the car. The Jaguar-Land Rover vehicles are particularly notorious for this.
true for most used cars but certain models like Lexus/Toyota cost as much as brand new.
I’m driving an 18-year-old Lexus and loving it. I paid for new sensors last year so I could keep on driving it. I love that I have zero fear of the car being bumped or stolen. And with only 180K miles, I think I can make it last a few more years. Why upgrade when transportation seems almost free?
Nice! Your 180K miles makes by 61K seem like a toddler.
Sorry, Sam. But 61K Land Rover miles = 180K Lexus miles.
Hold on to car sounds like the perfect vehicle for your kids to learn how to drive. Liability only coverage and if the kid gets in an accident no worries. All our kids learned in really old cars. Actually youngest was driving a 2000 Avalon until she got in an accident recently (not her fault). The other drivers insurance gave us a check but nowhere close to buy a decent used car to replace. Kids need crappy cars to learn they are going to have small dents and dings, and a really high chance of a crash. Insurance for your son is going to be insane especially living in a big city. Keep the car.
Keeping up on the car’s maintenance is such a great advice!
New car prices are insane. I really need to replace my 2000 F-150, but I am not paying $60K for a new pickup truck. Unless I find a good deal on a used truck, I will keep driving my old one for now.
The number one reason I was able to retire at 58 was because my wife and I drove old beater cars, and I maintained them myself. I invested the money I would have spent on car payments instead, and it grew. We didn’t get new cars until after we were 50.
Nice work! Buying too much, too expensive a car is probably the most common personal finance destroyer in America. Best to buy the cheapest, most reliable car as possible, maintain it, and enjoy.
Gotta love the old car smell after a while too! I’m getting to the stage, and I’m thrilled!
Perfect timing, sam! Our daughter is currently looking for her first car and has her eye on a BMW Mini for 15000 Euros. I have calculated that the car will cost her 66,000 Euros over a period of 10 years. Unfortunately, she doesn’t seem to care. Hope your excellent article helps. Thank you!
Hah! At least she knows what she wants! Hopefully, she fully pays for it herself as well as the maintenance bills. It takes buying too much car in the beginning to moderate one’s car consumption.
However, 15,000 Euros doesn’t seem like too much, even though it may violate my 1/10th Rule for Car Buying.
I’m a bit of an odd ball in that I love to watch car races, but I have no desire to own a fancy or fast car myself. What is important to me is reliability and safety. Airbags are a must and a backup camera is incredibly helpful. If I ever upgrade down the road, a front camera would be an incredible upgrade for parking assist. Nevertheless, I’ve done fine without one so I don’t feel I really need one. The cost of a new car will be a very prohibitive mental hurdle for me as well. Even if I can afford it, shelling out huge bucks for a car just doesn’t feel good to me.
And I hear ya on not wanting a super nice car with young kids. Oh the crumbs and shoe kick marks…
Hi Sam – you had a few posts that discussed the concept of owning the nicest house during a certain window for your kids’ childhood. Any similar thoughts on owning a more utilitarian car (for example an extra roomy SUV) during the time when the family will get the most use out if it? Thinking of kids sports, beach vacations, longer roadtrips etc.
I have very similar thoughts. And getting that roomie SUV for kids makes sense.
However, for the first eight years of their live so far, my kids love to kick the front seat from the back and get their feet over everywhere as they climb all over when we are stationary. Having an older car makes the whole thing feel like less of a big deal. If I had a brand new expensive car, I would be a little annoyed. But also teaching them proper behavior in the car is important.
The number one thing is safety followed by utility. As soon as my car, no longer feel safe, it will go. But just driving my dad’s old car made me feel like my current car is extremely safe.
Your dad’s home-to-car ratio is insane! My Audi is 5 years old. I thought about painting it a different color and getting new wheels as a way to feel like I got a new car for a fraction of the price. I’ll probably also rent a Lamborghini for a day ($1200) to get that car lover thing out of my system.
Haha, his house a car ratio is indeed insane! Has to be at least 500, if not 1,000, when I recommend everybody try to get to 30 or greater.
But it’s funny, but the older we get, the more we don’t wanna deal with new stuff. We get set in our ways and find value in the familiar.
Please do rent that Lamborghini for $1200 that one day and let me know how it is. I’ve always wanted to do the supercar rental thing for a weekend and go down to Carmel by the sea.