In 2002, at age 25, I foolishly bought a new luxury car, a Mercedes Benz G500. I had just gotten a raise and a promotion to Associate. Why not YOLO and feed my car addiction at the time? Dumb.
The G-Wagon cost $78,000 out the door, which was actually a good deal at the time. Just a year prior, a dealership in Santa Fe with import rights was selling G-Wagons exclusively for $150,000+.
A year later, I sold the car for a $18,000 loss because it wouldn't fit in the garage of this condominium I wanted to buy. It was two inches too tall for clearance!
I decided it was more responsible to buy this two bedroom, two bathroom condominium facing Lafayette Park than keep owning an expensive car with a $760 a month car payment. This is when my love for real estate, my favorite asset class to build wealth began.
After taking a bath on my new luxury car, I swore never to buy another again. When you're on your path to financial independence, having a nice car is the last thing you need!
New Luxury Car Prices Are Outrageous Today
After the G-Wagon I went the complete opposite direction and bought my mom's 1997 Honda Civic for $7,500. I then went through a series of other cars, including a 1997 BMW M3, 1995 Nissan Pathfinder, 1983 BMW 635 CSi classic, 2001 Land Rover Discovery II, and new Honda Fit. All the cars were between $7,500 – $20,000, great value in comparison.
Then in December 2016, with a baby on the way, I bought a one-year old Range Rover Sport for $60,000 after tax. It had 10,600 miles on it and I thought it was good value because brand new, it was selling for about $80,000 after tax.
Given I'm thinking of buying a new car in mid-2025, when the Range Rover Sport is 10 years old, I decided to drop by the Land Rover Dealer in Redwood City after a couple hours at the pool with my kids. I hadn't gone to a car dealership since 2020, so I was curious to see what new luxury car prices were.
For perspective, the average new car price according to Cars.com is about $49,000 for 2025. That is quite a pretty penny since I think an average car is like a Honda Accord or Toyota Camry.
New Range Rover Sports Are Way Overpriced
When I got to the Land Rover dealer, I was shocked. A brand new Range Rover Sport SE cost a whopping $104,600 before tax, or about $113,000 after tax! That's a 41% price increase since 2016. The car is a beauty with 23″ rims, comfy seats, and an updated body style. But wow! That's a lot of money.
Then I looked at another Range Rover Sport SE model at the San Francisco dealer that cost $119,870 before tax because it had a sport package and protection film. After tax, the car would cost about $130,000. Who can afford these prices?
If you follow my House-To-Car Ratio for financial freedom, you'd need a home worth at least $6.5 million to justify spending $130,000 on a new RRS. Alternatively, you can just keep your car and watch your house-to-car ratio increase as your car depreciates.
A Look At New Luxury Electronic Vehicles
After being blown away by the cost of new Range Rover Sports, I decided to look at some electric vehicles by Mercedes Benz because it was on the way home. Don’t shoot me for looking.
I've got a Tesla wall charger in my new house and Mercedes and other brands will start being compatible with Tesla's chargers in 2025 and beyond. Teslas are nice but they are ubiquitous here in San Francisco. I wanted something different.
I've been reading all over the news that EV prices have declined, especially Tesla's average car price. At last, maybe getting an EV is the way to go. See the chart below that shows a big decline in EV prices since mid-2022.
Unfortunately, a 2023 (not 2024) Mercedes Benz AMG EQS electric sedan sitting in the showroom was even more expensive than the Range Rover Sport! The asking price was $153,000 before tax, or about $166,000 after tax! Spending $166,000 for a last year's model electric model sedan is also outrageous.
Then the kiddos and I hopped into a Maybach EQS 680 for $197,350 pre-tax. It was nice, but come on now! I’d be stressed as hell driving or parking one of these things. One dent would cost $5,000+ to fix. It’s so much less stressful driving an old car. These luxury new car prices are clearly inflated.
After being disappointed in Mercedes Benz and Land Rover, I decided not to bother dropping by the BMW dealership and check out their iX models. Why bother when they're just going to charge a similar amount for an EV as well?
It really feels like only the rich or fools are buying new cars today.
A Better Spending Alternative
Instead of spending a fortune on a new luxury car, I could buy a well-equipped 2024 Toyota Corolla for $26,000 or a top-of-the-line Toyota Highlander for $60,000, which would save me between $106,000 and $140,000. With these savings, I would allocate 60% to the S&P 500, 25% to Treasury bonds yielding 5%, and 15% to a private real estate fund.
This approach feels much more responsible, providing both the satisfaction of owning a reliable new vehicle and enhancing our financial security for the future.
The concept of opportunity cost always weighs on me when I contemplate a significant purchase. I can't help but consider how much more money I could accumulate in 5-10 years through compound returns if I decide against buying the item.
Consequently, I've directed my indulgences toward investments in residential real estate and collectibles, such as rare books. With these assets, not only can I derive enjoyment, but there's also the potential to see a positive return over time.
Never Buying A New Luxury Car Again
After checking out cars at these dealerships, I decided to give up my search for a new luxury car. The prices are simply unaffordable for me without generating a significant amount of active income.
And there's no way my wife and I would be willing to go back to work and lose our freedom just to buy a luxury automobile. It feels way better to drive a more economical car that gets us from point A to point B at half the cost. Taking out a loan to buy a depreciating asset isn’t great.
I don't know who is able to purchase such cars. But clearly, many people must be doing well to afford such expensive vehicles.
If these luxury cars were priced between $60,000 – $70,000, I'd be tempted to buy one in 2025. However, they are priced so far what I believe they are worth that I have zero temptation to splurge on these type of vehicles. No YOLO spending here!
I have a better solution to my luxury car desires. Keep owning my current car for longer than planned.
Going To Keep My Car For Six More Years
Initially, I asserted that the ideal ownership duration for a car is 10 years. However, my statement was ambiguous regarding whether to replace a car after it reaches the age of 10 or after owning it for more than 10 years. For instance, if you purchase an eight-year-old car, would it necessitate replacement after two years or after reaching 10 years of ownership?
After careful consideration, I've realized there's no definitive answer. As long as you adhere to regular maintenance, replace worn-out parts, and address any issues promptly, you should be able to safely drive your car for over 120,000 miles. My main concern for all drivers is safety followed by ballooning maintenance costs.
My own car will reach the age of 10 years in July 2025, and it's still running smoothly and looks great. It seems premature to consider replacing it next year, especially considering that I recently invested $890 in two new tires. Furthermore, I've already replaced the leaking water pump in June 2023, the vacuum pump in February 2024, and recently had an oil change.
With only 52,000 miles on it and an average annual mileage of 5,500 miles, I anticipate minimal issues with keeping it for another six years until it reaches 15 years of age. By July 2030, my car should have around 88,000 miles on the odometer.
An Expensive New Car Makes Your Existing Car Way More Valuable
The beauty of expensive luxury cars lies in the appreciation it brings to the vehicles we already possess. Upon discovering the latest prices, I've found my 2015 Range Rover Sport to be even more valuable.
With a new one priced at $115,000 out the door, I now estimate mine to be worth at least $65,000—$5,000 more than what I paid for it back in December 2016.
The horsepower is similar to the new models and so is the comfort. Besides that new car smell vs. my In N' Out burger interior smell, I just don’t see many benefits of driving a new Range Rover Sport for so much money.
Related: Options For Terminating A Car Lease Early
New Cars Make Maintenance Expenses Feel Cheaper Too
Given that I'll be keeping my car for five years longer than planned, I'll be especially diligent in addressing maintenance issues to ensure it remains as safe as possible.
For example, I've noticed a slight creaking sound when driving slowly over uneven pavement. This is likely due to worn sway bar bushings, which can be replaced for $450. Previously, I might have disregarded such a minor problem. However, now that I've decided to forgo spending over $100,000 on a new luxury car, these expenses seem more reasonable.
I'm willing to spend $1,500 – $2,000 annually for five years to address any issues with my car instead of spending $115,000 upfront on a new Range Rover Sport. Additionally, I could earn 5% risk-free interest per year in the money I save by not buying, totaling $28,750 after five years!
Moreover, if you're eager to purchase a new car, I've discovered that simply washing and vacuuming the interior revitalizes its appearance and makes it feel like new again. It's remarkable what a clean car can achieve. No need to spend hundreds of dollars on a professional car detail.
Cars often rank among the worst culprits for undermining financial independence among consumers. Americans frequently overspend on cars to their own detriment. Let's commit to keeping our cars for as long as possible to save money. Our future selves will undoubtedly thank us.
Reader Questions
Who is paying these exorbitant prices for new luxury car prices? Surely, everybody must be making over $1 million a year given people rationally follow my 1/10th rule for car buying right? Why are people willing to pay so much for a car instead of invest the money instead to secure their financial future?
Invest In Real Estate And Stocks Instead Of A New Luxury Car
Paying money for a new luxury car is a waste of money, especially if you are not financially independent yet. Cars are depreciating assets that won't make you money in the future. Instead of paying for a car you don't need, use that money to invest in real estate and stocks instead.
Take a look at Fundrise, my favorite private real estate investing platform. Fundrise was founded in 2012 and manages over $3.2 billion with over 380,000 investors. The firm focuses on single-family and multi-family properties in the Sunbelt, where valuations are lower and cap rates are higher. For most investors, investing in a diversified private real estate fund makes the most sense.
Personally, I've invested $954,000 in private real estate since 2016 to diversify my exposure and earn more passive income. As a result, I've been able to extend my freedom for work for many more years. Fundrise is a sponsor of Financial Samurai and Financial Samurai is currently invested in Fundrise.
To increase your chances of achieving financial freedom sooner, join 60,000+ others and sign up for the free Financial Samurai newsletter. Financial Samurai is one of the largest independently-owned personal finance sites that started in 2009.
I feel the exact way. Owned my car for 15 years and bought home a few years back instead of a new luxury car and scored record low 2.7% fixed rate 30 year mortage and put 20% down to avoid PMI. Now my home is at least 100-200k increase in value and cheaper than renting a much smaller crappier apartment. I plan to sell my old luxury car and buy a cheap van, truck or reliable Japanese SUV as I need more room. Problem is that now even non luxury car prices are beyond insanity. Close to 50k for a new Toyota or Ford SUV and not even a high end model either. So frustrating!
Defender P400 Dynamic. I’m personally looking at that being best choice for luxury SUV for me. Good resale value too. Went from RR big one to a 4 Runner and although much cheaper feels cheaper and less safe. What is safety worth? One Caveat on Defender is the options get you close to 100k quick. Get the Sport if you don’t like rear door sideways opening access as both are very nice. My RR lasted 12 years and 130k miles so you should be good for another 2-5 years.
Hope so. I only got 52K miles on mine and drive 6K miles a year. I’m shooting for 5 more years to get my House-To-Car Price ratio into the several hubdreds!
50k miles IS a new car. Spend $400 on deep detailing and you’ll look the same as the showroom option…
Can’t pay $400 to detail when I can pay zero to wash and vacuum my car myself, which I enjoy. Listen to a podcast and I’m done within 30 min. Car doesn’t stay clean long enough to pay for detailing.
I personally like buying high end cars and keep them until they reach 30 years or 500k kms. My current car is a Diesel Mercedes class C 220 CDI released in 1998, I might replace it with a new hybrid diesel around 2030 when diesel car prices crash due to new EU legislation.
In 1974 the average new car price was $4,135, which equates to $27,456 inflation-adjusted 2024 dollars. However, the average new car price in 2023 was $49,388. The median household income in 1974 was $11,100 or $73,704 inflation-adjusted 2024 dollars, while in 2023, the actual median household income was $74,580. In 50 years, the average household income increased only 1.2% on an inflation-adjusted basis, while the average new car price increased 80%!. Today the average American pays nearly twice as much for a car in real terms as a half-century ago, yet still earns the equivalent amount of money.
In typical fashion, Americans have turned to debt to solve this problem. We now owe $1.56 trillion in auto loans, nearly double from 10 years ago. With cars costing more and the average consumer not having more money to spend, auto lenders have lengthened their terms. Before the 1980’s, most auto loans were 36 months or less. In 2023, the average car loan is 72 months, and Tesla now offers 84-month loans on their new cars.
Increasing the length of a car loan has several harmful effects for the consumer. Longer terms typically mean higher interest rates, as the loans become riskier to the lender. Because the term is longer and the rate is higher, you pay significantly more over the life of the loan. Since cars are depreciating assets, longer loans lead to negative equity, which means you owe more than the car is worth. If you need to sell the vehicle, you will have to bring money to the table, and you may have to pay out of pocket if the car is totaled in an accident, even if you have full coverage. Finally, longer-term loans mean that it is more challenging to save/invest money. The average length of car ownership in the U.S. is 8.4 years or 100 months. If you pay a loan for 72-84 months, you will nearly always have a car payment, making it harder to lower your expenses and save money for retirement.
I believe the answer is to look to lower-priced cars. I personally bought a new Honda Civic for $30,000 cash last year despite being able to afford a luxury car. For those of us old enough to remember the 1980s and 90s, we know that the cheapest car today is safer, more powerful, and more fuel efficient than even the most expensive cars of our childhood. If you really love luxury cars and can pay cash, go right ahead. As I like to say, your money, your choice. But if you have to finance your automobile purchase, think twice or three times about how much you spend. The financial repercussions will live long past the thrill of your luxury car.
I think the most eye-opening part is that a 2015 RR at $80K before tax in 2016 dollars is roughly $103K before tax in 2024 dollars. (Per the CPI calculator at data.bls.gov) That’s very close to the asking price of a new one and shows that although that is a lot to spend on a vehicle, the price has kept up with inflation the past 8 years. Negotiating the same deal you did on the 2015 (roughly 75% of msrp) would land you at $78.5K for a 2023 RR. Not bad when looking at it through the same lens as in December 2016.
Used car prices have dropped significantly from the Covid highs. I check every now and then on KBB and get a carmax or carvana quote out of curiosity and the appreciation party is definitely over. Your estimate is probably a bit high. I’m seeing private party values for a 2015 RR, 52,000 miles, Autobiography Black LWB between $51K-$57K in very good condition. Trade in is about $5k less.
Close. The car was $80,000 after tax new in 2015, or $73K before tax. I was able to buy it from a private seller for $60K after tax. It was listed for $64,000 at the Audi dealer, or about $70,000 after tax in 2016 when I bought it off him directly.
Yes, inflation sneaks up on his! Which is why owning real estate is generally a good move. After 10 years, you start marveling how cheap it was 10 years ago,
Yeah, it’s definitely not chump change and I agree on real estate! I have to remind myself how much inflation affects prices.
One option is buying a vehicle through auction if you can get access to a dealer license. From the 80’s – mid 2010’s was a great time to buy quality used cars at auction. Bid a little bit above what dealers will and you’ve got a newer vehicle at a steal. I haven’t personally bought in about 5 years because how competitive it’s gotten with foreign buyers. Hung my hat in 2021 after Carmax offered $10K over my purchase price for a 2019 Mazda that was almost out of the warranty period.
Bought a new Toyota RAV4 “Adventure” – very snazzy for a basic car $40k. The Hybrid is also very nice looking. They are upgrading the RAV4 in 2025 and so far no one knows what it will look like. This better last me 20y, although my last Toyota was a lemon tranny died at 130k mi. Inflation is out of control for any industrial products – cars, building materials, etc. And I expect it will continue bc the world is changing as the boomers retire and die out. I just pray we don’t crash and burn like the gloom and doom set say is inevitable with all these gov’t debts and entitlements. Sam please do an article on that – would love to know your excellent perspective and analysis.
Sorry, for as hard as I work I like to drive luxury. Can’t stand the plastic interiors of Honda’s, Toyota’s, Subaru’s. etc. Just utter garbage. Doors creak, feel wafer-thin when you shut them, engines are weak unless you get a v8, etc.
I bought a Cadillac Escalade for $104k back in Oct ’23 for my daily driver. I’ve taken it on two 1400 mile trips and I have easily driven 10 hours without a sore back. Put it in super cruise and it drives itself (including lane changes). Comfort galore and plenty of gadgets and tech. High quality leather and love the dash layout. Plus 430hp is nice and the engine is solid.
Since I like to live debt free I paid it off 2 mos ago and will likely drive it for 10 years or 100k miles, whichever comes first. In another 12 mos I’m looking to buy a 911 for my weekend car…maybe Aston or McLaren. Haven’t decided.
One thing for sure, I’m 50 now and the last thing I want is to be 70 and sitting on a pile of cash but not healthy enough to truly enjoy it. I workout 6 days a week, but you never know what life will bring you as you age. So, I’d rather travel, live in a modest home, be debt free, and drive fast cars while I still can.
I like the attitude. I just can’t for the life of me spend money on a new car anymore given how quickly it depreciates for the first three years.
I also prefer to live in a really nice house and drive a beater versus drive a really nice car and live in a cheaper house.
Driving a new car or an expensive car gives me too much stress with regards to Ding’s and accidents in the city.
Makes sense. You have a wife and kids so a bigger house is a better use of funds. For me, I’m a single guy and my son lives with his Mother two states away. So, other than child support and trips to see him, my overhead is pretty low. Already have his college money set aside if he chooses to go. That or trade school.
I’ve always bought new cars for my wife and me, but mostly drove them 9+ years (bought 3 year old Hondas and Subarus for our kids and got 10+ year from those too). The only exception to that was a 2007 GMC Acadia that I dumped right after the bumper to bumper warranty expired – I loved the way that vehicle drove but it was always in the shop. Thanks to the GM Card points I used on the original purchase, I was able to trade it in without taking much of a bath on depreciation. I’ve otherwise bought 2 Nissans and 2 Hondas since the turn of the century – all have been great, reliable vehicles. My 2010 Nissan Murano is still going strong and only has about 82k miles on it. I mostly just commuted in it, so I only put about 6k a year on it. Now that I’m semi-retired and any work I do is from home, I’m probably putting 2-3k a year on it. The reality is that we could get by on one car, but it’s far more convenient to have 2. That said, I may sell the Murano to a family member soon. I’m having a hard time justifying to myself buying a new car to replace it, as it seems pointless to buy new for what might be a 2k/year mileage vehicle. Even though I can easily afford to do so, I’ll feel like an idiot if I buy a new car and only put 10k miles on it in 5 years. Also, there’s really nothing on the market that piques my interest right now – no interest in a luxury vehicle and the other mid-size 2-row CUVs I’ve driven don’t seem to ride or accelerate as well or better than my 14 year old Murano. So if I’m going to buy something I’m not excited about, I figure why not buy something with 30-40k miles on it? If I end up not liking it, I’ll be able to dump it without taking the butt-kicking I’d take on new car depreciation. There’s still not a lot of inventory in the used car market though, so finding the right vehicle could be a challenge. For now, I’m deciding not to decide until I have to decide.
Toyota is the way to go for crushing financial goals. I credit by ‘07 Camry for helping me pay off my $140k law school debt several years back. It was a safe, reliable, low-maintenence transportation appliance. I then drove a Subaru BRZ (poor man’s Porsche) for 6 years before buying my brand new 2019 Audi A5 Sportback. I paid cash for it and will drive it for at least another 6 years. Any future car purchase will be made based on a percentage of NW (this is even more motivation to increase it). Not having a car payment the past 10 years has been amazing. I’ll never have one again!
Yeah man, my 2013 Accord EX-L V6 (which they don’t make anymore) only has about 51k miles on it and still drives great. It’ll be 11 next month and I plan on keeping it for another 4-5 years as well. Enjoy your car!
Not sure who can afford those $100K, or more cars. A real millionaire today starts at 8 digits and of those few I know none drives these cars. Yes, a new car in the 40-60K range is the most I see but no extravaganza except one Range Rover under 90K. Cars you can buy in this range in popular makes: Honda, Ford, Toyota, Nissan, Hyundai, have most of the options luxury vehicles had 5-6 yrs ago. My wife complained when I bought an equivalent of monthly income and 0.5% of NW as an unnecessary splurge just before retirement even though after selling a 20-year old minivan we needed an 8-passenger SUV from time to time when our grandkids visit, or when we head north for the summer to haul the stuff.
Just like many people take a lot of pride and enjoyment in their home, others take a lot of pride and enjoyment in their vehicle and get a huge sense of satisfaction from something they spend a lot of hours in each month. Not to mention the safety benefits of new vehicles. So if your only goal in life is to accumulate as much wealth as possible, bragging about still driving a 2010 Camry probably feels good. But for many people, their is no balance in that and I would argue that they are missing out on the joys and features that modern vehicles provide. In the end, just maximize to Sam’s 1/10 rule and you’ll achieve balance based on your situation.
The best way to structure your life is to have NO car. Have not owned a car for over 20 years. But I rent one for, on average I guess, a couple of weeks a year, when we want to do a road trip somewhere. The improvement in lifestyle not having to deal with daily traffic and all the other hassles of owning a mobile-tin-can are huge. And then there is all the money working so much better for you as well. Embrace the no mobile-tin-can lifestyle!
How did you shuttle your kids to school and activities? Bus?
Today, I took my kids 24 miles south to go swimming. There is no way I could economically get down there and back in a reasonable amount of time.
I have lived in large cities that do not require a mobile-tin-can. I have lived in Singapore, Hong Kong, Sydney, Bangkok, Tokyo at various times. None require a mobile-tin-can for day to day living. I guess I am lucky that many places and countries outside of the USA have amazing public transport networks that do not necessite mobile-tin-can’s – unlike the USA where everything seems built around roads and mobile-tin-can’s. Right now we are in Japan – just last week we rented a car for 3 days and did a roadtrip in the countryside. It was fantastic. Really enjoyed the driving. But it was equally fantastic returning the mobile-tin-can and not having to worry about, or pay, for the stupid thing once again. Of course if we lived in some small country town somewhere we would probably have to get a mobile-tin-can – but one of many advantages of living in the (right) big city is not having a mobile-tin-can!
Our 06 Sport is still going strong. We ordered a 23 PHEV version 20 months ago and are still waiting…. Yours is basically new! Yeah they are insanely expensive…. Wife has never had a new car, so it is her splurge 5 years into retirement.
Good to hear! Let me know if there are any big upcoming maintenance issues I should be aware of. I’ve already changed the vacuum pump, water pump, PVC valve, and fan.
We have had good luck on repairs considering an 18 year old car . Just had the alternator and wiper motor go out. Some drainage issues lead to crazy electrical failures, but great help on the internet and could fix them myself. It is sad knowing a new one probably won’t be as good as the old one.
Happy Easter Sam- Like you, I love a nice high end sports / luxury car. I’ve owned Lexus, Porsche, Mercedes, Acura.
Every time I buy a nice extra car (that is not our daily driver), I end up selling it because we don’t use it enough. I had a Porsche 911 Carrera 4S which I loved, but every time I would go to drive it, the batteries would be dead. My Mercedes CL-500 was one of the best cars I owned. Same thing. We didn’t drive it enough to justify it.
Now I drive a 10 year old 2014 Toyota pick up with 160,000 miles on it. It will easily get to double that. I bought it used with 80k on the odometer for $32,000.00. Want to get real sticker shock? Go look at prices of pick ups. Some are over $100k.
And now when I get the urge to buy something exotic or very high end, I get on Turo and rent something for a day or two. I get the itch scratched for a few hundred bucks and return it.
It’s great not owing a dime on any cars, and making investments in assets that appreciate!
Robert
Yeah, going on Turo or renting a nice car for a weekend somewhere should help get the itch out. I’ve just never done it! Thanks for the reminder. Maybe I’ll do so next year for my birthday. That would be fun.
Hey Sam,
Might I suggest you look at Lexus? We own two, a GX460 which is a bulletproof reliable SUV truck (note the one I have is the model generation before the very newest one) and a RX hybrid. Both require zero addditonal repairs (knock wood) and just the basic maintenance. Which costs significantly less than the German brands. Yes it’s not as exciting or prestigious as a Porsche or Landrover, but I can rest assured it’ll last trouble-free for hundreds of thousands of miles.
Will check it out. Just saw a new Lexus LX 600 and it looked sweet. Thoughts?
I honestly don’t care about any prestige factor in a car. I just like how my Range Rover Sport looks. I think the KIA Telluride looks pretty nice too. For some reason, the Lexus designs don’t do it for me. But the LX 600 was nice.
Yep. Agreed. Really can’t go wrong with Lexus. LX is def just more cash. They also have a TX which is significantly less rugged and def more of a cruiser / family mover. It’s competely brand new so might not have the track record as some of the more established models. But Lexus service and reliability is so good that you shouldn’t have any issues at all.
Will do. Just saw a new Lexus LX 600 and it looked real nice. What do you think about the LX 600 vs. the GX460?
The LX is based on landcruiser 200 series. Very tough and reliable. But 30-40 grand more than GX. You cannot go wrong. Just more expensive.
Ah OK. I guess I’ll just have to test drive both! $30-$40K more than a GX seems like a lot if they are both great vehicles.
I sold my 2018 Chevy Equinox with 28k miles on it in Oct ‘23 for $18k which is the same price I paid for it in ‘21. It was in excellent condition. Good, comfortable, reliable, stress free, stealth wealth vehicle imo. But what I really was itching for was a nicer mid size SUV. So, after tons of reading the Audi Q5 and the Porsche Macan rose to the top for me based on a combination of price and quality. But they were just a little too small imo. I.e tight legroom in rear seats for passengers. As such, the Cayenne made more sense to me for size, but I wanted at least a Cayenne S if I went that route. The price was a big deterrent for me though. Just way more than I really wanted to spend. Then the 2024 Cayenne S popped up with a V8. $120k basically for the build I wanted. So I went to look. Test drove a used 2019 Cayenne S $59k and a used 2020 Macan GTS $70k for comparison. Loved the sportiness of the GTS but the Cayenne was more spacious and made more sense to me. After driving the 2019 Cayenne S, I bought it. Was happy with the low mileage, immaculate condition inside and out, 2 yr warranty, and 1/2 the coat of a new ‘24. Cost me my equinox + $40k. Definitely a big splurge for me, but I can afford it’s definitely way more fun to drive.
$59K is certainly more digestible than $120K! Enjoy your newish car.
Thanks Sam. Definitely enjoying it! For me, it hit the sweet spot of price/value with a splash of yolo. Longtime follower of yours. A thanks for doing what you do!
Great article Sam! My wife and I drive a 1997 Toyota Land Cruiser and a 1983 Porsche 911 SC, have owned both for ~ 25 years. The LC has ~ 290k miles, the Porsche ~ 130k… Both cars have appreciated nicely and plan to continue driving them. Both were bought used, the LC had 40k, Porsche 62k… Love them both and with continue to service and drive them on going. Everywhere we go someone is wanting to buy them :)
290K miles is impressive! Makes my 52K miles so far feel like a baby. Inspiring!
Sam I hope your RR Sport makes it to 10 years, and maybe more! They are notorious for having lots of issues, as I’m sure you’re aware. But you’re right, it’s more about maintenance than the make. I think your choice of Highlander for next vehicle is a great one! Can’t go wrong with a Honda or Toyota.
We had a 1998 Honda Civic that lasted 180,000 kms (108,000 miles) which was a couple years short of being 25 years old until a fender bender had the insurance company write it off.
Today we have a Toyota Camry Hybrid and a Honda Odyssey, both 2011. Again, I’ll try to hit 20+ years with them.
Gas is $2.03/L CAD ($5.65/G USD) here in Vancouver, Canada and while that’s astronomical (we’ve yet to hit forecasted peak) I can’t bring myself to spend $80K CAD ($60K USD) for an EV. That’s a lot of gas!
I hope it makes it to 10 years. That’s only 1 more year away!
The maintenance issues have been within the scope of expectations.
We bought a new RAV4 last year, (non-EV, non-CVT trans), we paid no markup but even that car was too expensive at 30k. Your post is great, spot on with how vehicles are a terrible investment. I have a 2001 Tundra (4.7 V8, best engine), and the kids share a fixed-up ‘13 Corolla I found for $500 from a tow-yard. It’s hard to avoid tempting sports cars but your posts help keep me focused!
Keep up the great work.
Cool beans. I was digging its competitor, the CR-V Sport. Looks pretty good!
The Grand Highlander with the Hybrid MAX drivetrain is the perfect vehicle for you and your family. Three rows, a perfected engine and drivetrain, great gas mileage, updated Safety Sense system 3.0, Digital Rearview mirror (a great update), Panoramic view in navigation, Blind Spot Monitoring with rear cross-traffic alert, Front and Rear Parking Assist With Automatic Braking, etc. etc. Man, I sound like a salesman. Anyway, Toyota Grand Highlander or Lexus TX is the way to go and you will get your money’s worth in the long run.
How much for them? Yes, look into car sales as a side gig!
For the 2024 Toyota Highlander Hybrid Ma Platinum – $57k to $64k depending upon options. These can be negotiated but I’m not sure in California. Just watch The Homework Guy on YouTube to learn how to negotiate better deals at dealerships, I mean Stealerships. LOL
Nice. Didn’t realize Toyota had the GRAND Highlander. Sounds perfect. But is it fun to drive?! I’d like the fun and soul too given I drive daily.
I’m surprised you put your desire for something different above safety. Seems like a Y would be a no brainer, especially with FSD improving.
No problem. Are you saying the other cars are not safe? If so, please share with me the study. We can do a lot to warn consumers that every other car besides the Tesla Y is safe. Thank you.
It’s more of a spectrum, but it’s best in class per the IIHS if you click into the detailed scores instead of just looking at the “Top Safety Pick +” rating. Pretty much anything else is “less safe”.
https://www.iihs.org/ratings/top-safety-picks?tspPlusOnly#award-winners
That checks out if you consider the story about a guy who deliberately drove his family off a ~250 foot cliff and they all survived.
That’s not even considering the safety enhancements from FSD, which apparently has gotten even better recently now with the v12.3 release.
Thanks for the link. Good to see the Kia Telluride there. I really like how that one looks.
The Model Y is fine. It’s just everywhere here in SF. I’d like to try something new. Or maybe if Tesla comes out with a new Y version or X in the future.
Our Highlander is 7 years old. I was thinking of a new one, but after reading this, I think I’ll hold off a few more years. I’d rather finish our basement and enjoy that space. I don’t drive enough to justify these prices.
Hi Sam, another great article 2 things I am very interested to see where used car prices go on these new vehicles with screens everywhere, batteries, etc it would be interesting to see how much car repair was 10 years ago on a five-year-old car versus the cost of repairs now with all this new technology. Also, I found my older vehicles that adding Apple CarPlay to where the existing stereo is can make your car feel 10 years newer! Happy Easter.
I’ve got my iPhone that is on a holder that has bluetooth to the car system. What’s nicer about Apple CarPlay? thanks
Repairing electronic gremlins is probably gonna be tough down the road.