Nicely of us, 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 may occasionally disappoint everybody who generously shared recommendation and proposals. Consider me, I listened. On the high of my checklist 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 certain I might take pleasure in each certainly one of these automobiles, 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 totally lifeless battery, two roadside help calls, and two system shutdowns whereas driving, I’m nonetheless protecting 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 difficulty seemingly resolved, I’m sticking with my 10-year-old automobile for a minimum of one other 12 months, 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 12 months.
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 present 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 principle the reason why I’m unwilling to gentle tens of hundreds of {dollars} on fireplace simply to take pleasure in that new-car scent.
Motive #1: I am Changing into an Previous Canine Who Doesn’t Need To Be taught Methods
With a brand new automobile, I’d should be taught an entire new interface – the way it drives, how the touchscreen works, the way to activate the A/C, and so forth. Finally I’d determine it out, certain. However I’m additionally the man who didn’t notice till 12 months 5 of possession that my present automobile has a button to robotically open the trunk and one other button to warmth the steering wheel. What luxurious!
I’m formally turning into my father in relation 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 every little thing I may ask for.
Motive #2: I Don’t Need the Stress of Driving a Dear New Automobile
Spending $60,000 for a Tesla Mannequin Y Efficiency or $115,000 for a brand new Vary Rover Sport would make me continuously careworn about dings, scratches, and protecting 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 wherever and not using 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 they usually couldn’t give two farts. I now not wish to battle these nuances any extra.
As twin unemployed dad and mom (DUPS), I already really feel strain to supply. The very last thing I would like is new-car-stress layered on high of every little thing else. In reality, the largest advantage of driving an outdated automobile is healthier psychological well being! New automobiles additionally include larger insurance coverage charges, which drags down our money move.
The Primary 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 cause I didn’t exchange it’s this: Shopping for a brand new automobile now would sabotage a serious monetary purpose.
I’m presently about $20,000 a 12 months in passive revenue brief of my ultimate monetary independence goal. At a 4% withdrawal fee, meaning I would like a minimum of $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 exchange the $150,000 in passive revenue I misplaced. 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 superb feeling of getting 100% of your required dwelling bills coated by passive revenue. That feeling lasted from 2012, once I left work, till 2023. I desperately wish 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 revenue purpose of $380,000 a 12 months no downside. However slicing off $50k – $115k of capital right this moment would value me a minimum of: $2,000–$4,600/12 months in misplaced passive revenue, perpetually.
That places much more strain on the inventory market to do the heavy lifting, which I am not bullish on attributable to valuations. Managing my household’s funds 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 Youngsters’ Funds
It’s exhausting sufficient to justify shopping for a automobile I don’t completely want once I’m making an attempt to hit an enormous monetary purpose. That is why I rolled the cube and spent $1,750 to repair the automobile from money move. However once I take into consideration my youngsters’ future, it turns into nearly unattainable to splurge.
At ages 6 and eight, they’ve the longest time horizon of all, and subsequently the best compounding potential. Each greenback invested for them right this moment is dramatically extra worthwhile 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 potential to generate revenue, but they’ll be getting into a labor market disrupted by AI. They might very nicely be underemployed after school and nonetheless dwelling at house with us.
The primary approach 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 a better probability 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 p.c pullback within the inventory market this 12 months. If and when it occurs, I wish to make investments as a lot as doable for my kids’s custodial funding accounts. The present present restrict per individual is $19,000 or $38,000 if a pair, and we’ve 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:
State of affairs 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 recognize $136,000 additional in her custodial funding account after school to launch than sitting in a brand new Tesla ranging from age 6. She’s completely completely happy 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 recognize having $248,000 to pursue his profession desires, as a substitute of simply go into an trade 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 automobile to the grocery store, faculty, or Lake Tahoe. Actually, I simply desire a dependable automobile that will get me from level A to level B safely.
An 8% fee of return is cheap. Nonetheless, if we expertise sturdy runs like we’ve seen since 2023, absolutely the greenback positive factors over 10 years can be even better. The Innovation fund, for instance, returned 43.5% in 2025. The momentum appears there for one more nice 12 months, though, no ensures after all.
As soon as I noticed the numbers, it grew to become 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 utilizing the cash to purchase any important dip of three% or better within 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 By Money Circulate
So there you have got it. The private finance nerd in me simply can’t justify splurging on a brand new automobile. I truthfully really feel silly doing so once I merely do not worth new automobiles anymore. Greater than the rest, I worth freedom and making certain our youngsters can be OK
I hope to outlive the subsequent 12 months with minimal automobile issues. If I can simply spend simply $1,000 – $2,000 a 12 months fixing the automobile sooner or later outdoors of tires, brakes, and oil modifications, I’ll think about it a win. Maybe if I ever get some sort of giant windfall, I will purchase a brand new automobile.
However right this moment 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! Take a look at the image under. I really feel like I am driving a brand new automobile without spending a dime as soon as extra.
How do you overcome the guilt of spending on a depreciating asset when you realize that cash may compound into way more for you and your kids sooner or later? In case you’ve discovered methods to faucet principal for a serious buy, somewhat than counting on money move alone, I’d love to listen to your methods.
Ideas For A Extra Safe Life
In case you care about automobile security, you must also 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 way of Policygenius. My spouse and I bought matching 20-year time period insurance policies at an incredible fee through the pandemic to guard our two younger kids, and the peace of thoughts we really feel is priceless.
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