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 (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 cost maybe in April 2025, but the coolant isn't leaking anymore)
Fortunately, my mechanic is just a one-mile walk from my house, so dropping off the car for maintenance is never a hassle. After $5,400 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.
Subscribe To Financial Samurai
If you want to become a millionaire, grab a copy of my new book, Millionaire Milestones: Simple Steps to Seven Figures. I've distilled everything I've learned over the past 30 years of working and writing about finance to help you build more wealth than 90% of the population. The more money you have, the more freedom you’ll have to live life on your terms. You can purchase a copy on Amazon or wherever you buy books.
Listen and subscribe to The Financial Samurai podcast on Apple or Spotify. I interview experts in their respective fields and discuss some of the most interesting topics on this site. Your shares, ratings, and reviews are appreciated.
To expedite your journey to financial freedom, join over 60,000 others and subscribe to the free Financial Samurai newsletter. Financial Samurai is among the largest independently-owned personal finance websites, established in 2009. Everything is written based on firsthand experience and expertise.
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.
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.
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.
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.