Nicely people, after 60 agonizing days of coping with automobile salespeople, test-driving far too many automobiles, visiting two auto mechanics to diagnose and repair my present automobile, and losing an unhealthy period of time on on-line analysis, I’ve determined to not purchase a brand new automobile.
I do know this will disappoint everybody who generously shared recommendation and proposals. Consider me, I listened. On the high of my listing had been the Lexus GX 550, Toyota Land Cruiser, Toyota Highlander, Rivian R1S and R2, Vary Rover Sport, and Tesla Mannequin Y Efficiency with FSD.
I’m positive I’d take pleasure in each one among these automobiles, all conveniently priced between $50,000 and $115,000 out the door. That can also be exactly the issue.
A Silver Lining After Returning From Hawaii
Regardless of getting back from 10 days in Honolulu to a very useless battery, two roadside help calls, and two system shutdowns whereas driving, I’m nonetheless maintaining my automobile.
In a accident, the January 1, 2026 rain-soaked automobile fiasco turned out to be a blessing in disguise.
The complete battery discharge whereas I used to be away seems to have reset the rogue modules inflicting a parasitic drain. Earlier than I left for my journey, the Low Battery Warning confirmed up 13 out of 15 chilly begins, regardless of changing the battery and driving for a minimum of 45 minutes the day earlier than. Since returning, the automobile has behaved flawlessly. No Low Battery Warning. No ominous “System Will Shut Down in One Minute” message. Twenty clear days and counting.
With the problem seemingly resolved, I’m sticking with my 10-year-old car for a minimum of one other yr, however hopefully three and a half extra years. It has simply 67,500 miles on it, and I drive solely about 6,300 miles a yr.
So sure, regardless of current mechanical drama, a roaring bull market since 2023, and a current article on decumulating wealth, I’m passing on a brand new automobile. I am unable to bear to offer it up after spending all this money and time fixing it. Sunk value fallacy maybe? However after lastly profitable a two-month battle, it is time to benefit from the spoils!
Under are the primary explanation why I’m unwilling to gentle tens of hundreds of {dollars} on hearth simply to take pleasure in that new-car scent.
Motive #1: I am Changing into an Outdated Canine Who Doesn’t Need To Study Tips
With a brand new automobile, I’d need to study a complete new interface – the way it drives, how the touchscreen works, how you can activate the A/C, and so forth. Finally I’d determine it out, positive. However I’m additionally the man who didn’t understand till yr 5 of possession that my present automobile has a button to mechanically open the trunk and one other button to warmth the steering wheel. What luxurious!
I’m formally turning into my father relating to expertise. He refuses to improve his 1998 Toyota Avalon and I do not wish to improve my 2015 Vary Rover Sport that also has nice-smelling leather-based seats. It additionally has Bluetooth, parking sensors, a backup digital camera, all-wheel-drive, 22” rims, and all the things I may ask for.
Motive #2: I Don’t Need the Stress of Driving a Expensive New Automotive
Spending $60,000 for a Tesla Mannequin Y Efficiency or $115,000 for a brand new Vary Rover Sport would make me continually burdened about dings, scratches, and maintaining the factor pristine. It’s like sporting a brand-new pair of white sneakers, multiplied by 1,000.
Proper now, I can park my 10-year-old automobile anyplace with out a second thought. If it will get dinged or bumped, I shrug. But when a brand new automobile will get keyed in a grocery store lot? I’d be pissed. And my happiness is value far more than that. I have been in my automobile 3 times when the neighbor opening their door dinged mine and so they couldn’t give two farts. I now not wish to battle these nuances any extra.
As twin unemployed mother and father (DUPS), I already really feel stress to supply. The very last thing I want is new-car-stress layered on high of all the things else. Actually, the biggest benefit of driving an old car is better mental health! New vehicles additionally include greater insurance coverage charges, which drags down our money movement.
The Most important Motive: Alternative Price Of Not Investing Is Too Nice
Being comfy with my previous automobile is sweet. Avoiding stress is even nicer. However the primary motive I didn’t exchange it’s this: Shopping for a brand new automobile now would sabotage a serious monetary objective.
I’m presently about $20,000 a yr in passive revenue quick of my ultimate monetary independence goal. At a 4% withdrawal price, which means I want a minimum of $500,000 extra in invested capital.
Ever since I purchased my house on a large lot in 2023, I’ve been working to earn extra, save extra, and make investments higher to interchange the $150,000 in passive income I lost. I’ve made nice progress, partially due to a bull market in shares. Additional, two tenant turnovers in 2025 enabled me to reset rents to market charges and meaningfully enhance rental revenue.
So to spend $50,000–$115,000 on a depreciating asset appears like an unforced error. I do know the wonderful feeling of getting 100% of your required dwelling bills lined by passive revenue. That feeling lasted from 2012, after I left work, till 2023. I desperately wish to return to that scenario.
If I grind for an additional 1–2 years and the market cooperates, I ought to attain my passive revenue objective of $380,000 a yr no downside. However slicing off $50k – $115k of capital immediately would value me a minimum of: $2,000–$4,600/yr in misplaced passive revenue, endlessly.
That places much more stress on the inventory market to do the heavy lifting, which I am not bullish on on account of valuations. Managing my family’s finances already appears like a full-time job typically with 10 funding accounts. I don’t wish to drag this out any longer than mandatory as a result of I’m already drained.
The Even Greater Alternative Price: My Children’ Funds
It’s exhausting sufficient to justify shopping for a automobile I don’t completely want after I’m attempting to hit a giant monetary objective. This is the reason I rolled the cube and spent $1,750 to repair the automobile from money movement. However after I take into consideration my children’ future, it turns into virtually inconceivable to splurge.
At ages 6 and eight, they’ve the longest time horizon of all, and due to this fact the very best compounding potential. Each greenback invested for them immediately is dramatically extra helpful than a greenback invested for me.
And let’s be clear: they’re technically poor. They haven’t any nice expertise, no jobs, and no capability to generate revenue, but they’ll be entering a labor market disrupted by AI. They might very properly be underemployed after faculty and nonetheless dwelling at residence with us.
The principle means I am hedging is by investing closely in AI on their behalf.
I’ve already funded a brand new $200,000 Fundrise Venture account earmarked for them in August 2025. Ideally, I’d wish to double the funding, so it has a higher likelihood to develop into hundreds of thousands by the point they graduate as an insurance coverage coverage. After all I am not going to inform them they’ve this insurance coverage coverage out of concern of spoiling them.
As well as, I consider there’s going to be a ten % pullback within the inventory market this yr. If and when it occurs, I wish to make investments as a lot as potential for my kids’s custodial funding accounts. The present present restrict per individual is $19,000 or $38,000 if a pair, and we now have two kids.
This Is The place the Math Will get Critical
If I make investments the cash I would have spent on a brand new automobile as a substitute:
Situation 1:
Make investments $50,000 (Tesla Mannequin Y non-performance mannequin cash) for my daughter for 13 years at 8%: -> $50,000 -> ~$136,000. I feel she would respect $136,000 further in her custodial funding account after faculty to launch than sitting in a brand new Tesla ranging from age 6. She’s completely completely satisfied kicking the again of my automobile’s entrance seats as is.
Situation 2:
Make investments $115,000 (Vary Rover Sport cash) for 10 years at 8%: -> $115,000 -> $248,000. I feel he would respect having $248,000 to pursue his profession desires, as a substitute of simply go into an business society considers prestigious.
That’s life-changing cash for a child beginning maturity. It’s not life-changing for me to be driving a nicer car to the grocery store, faculty, or Lake Tahoe. Truthfully, I simply need a dependable automobile that will get me from level A to level B safely.
An 8% price of return is cheap. Nonetheless, if we expertise sturdy runs like we’ve seen since 2023, absolutely the greenback good points over 10 years can be even higher. The Innovation fund, for instance, returned 43.5% in 2025. The momentum appears there for an additional nice yr, though, no ensures after all.
As soon as I noticed the numbers, it grew to become apparent: It is higher to take a position for his or her future than drive a brand new automobile that I do not completely want.
So as a substitute of promoting Treasuries to purchase a depreciating asset, I’m rolling expiring Treasuries into conventional enterprise capital funds investing in AI, plus an open-ended venture fund. I am additionally utilizing the cash to purchase any vital dip of three% or higher within the inventory market.
I am within the camp that the larger threat is not the AI bubble popping, it is lacking out on a generational life-changing alternative close to the start.
Paying for Repairs By Money Stream
So there you’ve it. The personal finance nerd in me simply can’t justify splurging on a brand new automobile. I actually really feel silly doing so after I merely do not worth new vehicles anymore. Greater than the rest, I worth freedom and guaranteeing our kids can be OK
I hope to outlive the subsequent yr with minimal automobile issues. If I can simply spend simply $1,000 – $2,000 a yr fixing the automobile sooner or later exterior of tires, brakes, and oil modifications, I’ll take into account it a win. Maybe if I ever get some sort of big windfall, I will purchase a brand new automobile.
However immediately is the day to proceed investing for a brighter future. Within the meantime, I am simply going to clean and vacuum my automobile to make it really feel new as soon as extra. And you realize what? Washing the automobile labored! Try the image under. I really feel like I am driving a brand new automobile at no cost as soon as extra.
How do you overcome the guilt of spending on a depreciating asset when you realize that cash may compound into much more for you and your kids sooner or later? Should you’ve discovered methods to faucet principal for a serious buy, quite than counting on money movement alone, I’d love to listen to your methods.
Options For A Extra Safe Life
Should you care about automobile security, you also needs to care about defending your loved ones in case one thing occurs to you. Think about an reasonably priced time period life insurance coverage coverage by means of Policygenius. My spouse and I obtained matching 20-year time period insurance policies at an incredible price throughout the pandemic to guard our two younger kids, and the peace of thoughts we really feel is priceless.
To expedite your journey to monetary freedom, be a part of over 60,000 others and subscribe to the free Financial Samurai newsletter. You may also get my posts in your e-mail inbox as quickly as they arrive out by signing up here. All the pieces is written primarily based on firsthand expertise and experience.
