Effectively people, after 60 agonizing days of coping with automobile salespeople, test-driving far too many autos, 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 suggestions. Consider me, I listened. On the high of my listing have 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 might take pleasure in each one among these autos, all conveniently priced between $50,000 and $115,000 out the door. That can 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 a number of system shutdowns whereas driving, I’m nonetheless retaining my automobile.
In a coincidence, 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. 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 difficulty seemingly resolved, I’m sticking with my 10-year-old automobile for no less than 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 latest mechanical drama, a roaring bull market since 2023, and a latest article on decumulating wealth, I’m passing on a brand new automobile. I am unable to bear to present it up after spending all this money and time fixing it. However beneath are the primary the explanation why I’m unwilling to mild tens of 1000’s of {dollars} on hearth simply to take pleasure in that new-car scent.
Motive #1: I am Turning into an Outdated Canine Who Doesn’t Need To Study Methods
With a brand new automobile, I’d need to study a complete new interface – the way it drives, how the touchscreen works, the best way to 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 robotically open the trunk and one other button to warmth the steering wheel.
I’m formally turning into my father relating to know-how. He refuses to improve his 1998 Toyota Avalon and I do not need to improve my 2015 Vary Rover Sport that also has nice-smelling leather-based seats. It has Bluetooth, parking sensors, a backup digital camera, all-wheel-drive, and all the pieces I might ask for.
Motive #2: I Don’t Need the Stress of Driving a Dear New Automotive
Spending $60,000 for a Tesla Mannequin Y Efficiency or $115,000 for a Vary Rover Sport would make me continuously careworn about dings, scratches, and retaining 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 no 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 thrice when the neighbor opening their door dinged mine. I now not need to combat these nuances any extra.
As twin unemployed dad and mom (DUPS), I already really feel strain to offer. The very last thing I want is new-car-stress layered on high of all the pieces else. Actually, the greatest good thing about driving an outdated automobile is best psychological well being! New automobiles additionally include larger insurance coverage charges, which drags down our money stream.
The Important Motive: Alternative Price Of Not Investing Is Too Nice
Being comfy with my outdated automobile is good. Avoiding stress is even nicer. However the primary motive I didn’t substitute it’s this: Shopping for a brand new automobile now would sabotage a serious monetary purpose.
I’m at present about $20,000 a yr in passive earnings brief of my ideally suited monetary independence goal. At a 4% withdrawal price, meaning I want no less than $500,000 extra in invested capital.
Ever since I purchased my home on a big lot in 2023, I’ve been working to earn extra, save extra, and make investments higher to switch the $150,000 in passive earnings I misplaced. I’ve made nice progress, partly because of a bull market in shares. Two tenant turnovers in 2025 additionally turned out to be a blessing, as they allowed me to reset rents to market charges and meaningfully enhance rental earnings.
So to spend $50,000–$115,000 on a depreciating asset seems like an unforced error. I do know the wonderful feeling of getting 100% of your required residing bills lined by passive earnings, and I desperately need to return to that state of affairs.
If I grind for one more 1–2 years and the market cooperates, I ought to attain my passive earnings purpose of $380,000 a yr no drawback. However slicing off $50k – $115k of capital immediately would value me no less than: $2,000–$4,600/yr in misplaced passive earnings, eternally.
That places much more strain on the inventory market to do the heavy lifting, which I am not bullish on because of valuations. Managing my household’s funds already seems like a full-time job generally with 10 funding accounts. I actually don’t need to drag this out any longer than needed as a result of I’m already burned out.
The Even Greater Alternative Price: My Youngsters Funds
It’s exhausting sufficient to justify shopping for a automobile I don’t completely want after I’m making an attempt to hit a giant private purpose. This is the reason I rolled the cube and spent $1,750 to repair the automobile from money stream. However after I take into consideration my youngsters’ future, it turns into virtually not possible to splurge.
At ages 6 and eight, they’ve the longest time horizon of all, and subsequently the very best compounding potential. Each greenback invested for them immediately is dramatically extra precious 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 capacity to generate earnings, but they’ll be getting into a labor market disrupted by AI. They could very properly be underemployed after school and nonetheless residing at dwelling with us.
The principle method I am hedging is by investing closely in AI on their behalf.
I’ve already funded a brand new $200,000 Fundrise Enterprise account earmarked for them in August 2025. Ideally, I’d wish to double the funding, so it has an opportunity to develop into thousands and 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.
As well as, I imagine there’s going to be a ten p.c pullback within the inventory market this yr. If and when it occurs, I need to make investments as a lot as potential for my youngsters’s custodial funding accounts.
This Is The place the Math Will get Severe
If I make investments the cash I would have spent on a brand new automobile as a substitute:
State of affairs 1:
Make investments $50,000 (Tesla Mannequin Y cash) for my daughter for 13 years at 8%: -> $50,000 -> ~$136,000. I feel she would admire $136,000 further in her custodial funding account after school to launch than sitting in a brand new Tesla beginning at age 6. She’s completely blissful kicking the again of my automobile’s entrance seats as is.
State of affairs 2:
Make investments $115,000 (Vary Rover Sport cash) for 10 years at 8%: -> $115,000 -> $248,000. I feel he would admire 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. Nevertheless, if we expertise robust runs like we’ve seen since 2023, absolutely the greenback positive aspects over 10 years will probably be even higher. The Fundrise Innovation fund, for instance, returned 43.5% in 2025.
As soon as I noticed the numbers, it turned apparent: It is higher to speculate 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 enterprise fund. I am additionally going to make use of the cash to purchase any important dip of three% or higher on the inventory market.
I am within the camp that the larger danger is not the AI bubble popping, it is lacking out on a generational life-changing alternative close to the start.
Paying for Repairs Via Money Move
So there you’ve gotten it. The private finance nerd in me simply can’t justify splurging on a brand new automobile. I truthfully really feel silly doing so after I merely do not worth new automobiles anymore. Greater than the rest, I worth freedom and peace of thoughts.
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, I’ll contemplate it a win. Maybe if I ever get some sort of big windfall, I am going to 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 scrub and vacuum my automobile to make it really feel new as soon as extra! And you understand what, washing the automobile labored! I really feel like I am driving a brand new automobile at no cost.
How do you overcome the guilt of spending on a depreciating asset when you understand that cash might compound into much more for you and your youngsters sooner or later? Should you’ve discovered methods to faucet principal for a serious buy, slightly than counting on money stream alone, I’d love to listen to your methods.
Ideas 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. Take into account an reasonably priced time period life insurance coverage coverage by Policygenius. My spouse and I acquired matching 20-year time period insurance policies at an incredible price through the pandemic to guard our two younger youngsters, and the peace of thoughts we really feel is priceless.
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