Properly 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 will disappoint everybody who generously shared recommendation and proposals. Imagine me, I listened. On the prime 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 get pleasure from each considered one of 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 protecting my automobile.
In a coincidence, the January 1, 2026 rain-soaked automobile fiasco turned out to be a blessing in disguise.
The total 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 not less than 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 not 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 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 can not bear to provide it up after spending all this money and time fixing it. Sunk price fallacy maybe? However after lastly successful a two-month battle, it is time to benefit from the spoils!
Beneath are the primary the explanation why I’m unwilling to mild tens of 1000’s of {dollars} on hearth simply to get pleasure from that new-car odor.
Motive #1: I am Changing into an Outdated Canine Who Doesn’t Need To Be taught Tips
With a brand new automobile, I’d must study a complete new interface – the way it drives, how the touchscreen works, the right 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 routinely open the trunk and one other button to warmth the steering wheel. What luxurious!
I’m formally turning into my father with regards 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 additionally has Bluetooth, parking sensors, a backup digicam, all-wheel-drive, 22” rims, and all the pieces 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 consistently confused 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 price far more than that. I have been in my automobile thrice when the neighbor opening their door dinged mine they usually couldn’t give two farts. I now not need to struggle these nuances any extra.
As twin unemployed dad and mom (DUPS), I already really feel stress to supply. The very last thing I would like is new-car-stress layered on prime of all the pieces else. In truth, the biggest benefit of driving an old car is better mental health! New automobiles additionally include greater insurance coverage charges, which drags down our money stream.
The Fundamental Motive: Alternative Value Of Not Investing Is Too Nice
Being snug with my outdated automobile is good. Avoiding stress is even nicer. However the primary purpose I didn’t change 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 ultimate monetary independence goal. At a 4% withdrawal price, meaning I would like not less than $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 switch the $150,000 in passive income I lost. I’ve made nice progress, partially because of a bull market in shares. Additional, two tenant turnovers in 2025 enabled me to reset rents to market charges and meaningfully improve rental earnings.
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 residing bills coated by passive earnings. That feeling lasted from 2012, after I left work, till 2023. I desperately need to return to that scenario.
If I grind for an additional 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 at present would price me not less than: $2,000–$4,600/yr in misplaced passive earnings, eternally.
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 need to drag this out any longer than needed as a result of I’m already drained.
The Even Greater Alternative Value: My Children’ Funds
It’s laborious sufficient to justify shopping for a automobile I don’t completely want after I’m attempting to hit an enormous monetary purpose. Because of this I rolled the cube and spent $1,750 to repair the automobile from money stream. However after I take into consideration my children’ future, it turns into nearly 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 at present is dramatically extra priceless than a greenback invested for me.
And let’s be clear: they’re technically poor. They haven’t any nice abilities, no jobs, and no potential to generate earnings, but they’ll be entering a labor market disrupted by AI. They could very properly be underemployed after school and nonetheless residing at house with us.
The primary 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 prefer to double the funding, so it has a higher probability to develop into tens of millions 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 worry of spoiling them.
As well as, I imagine there’s going to be a ten % pullback within the inventory market this yr. If and when it occurs, I need to make investments as a lot as doable for my kids’s custodial funding accounts. The present present restrict per particular person is $19,000 or $38,000 if a pair, and now we have two kids.
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 non-performance mannequin cash) for my daughter for 13 years at 8%: -> $50,000 -> ~$136,000. I believe she would admire $136,000 further in her custodial funding account after school to launch than sitting in a brand new Tesla ranging from age 6. She’s completely glad 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 believe he would admire having $248,000 to pursue his profession goals, 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 automobile to the grocery store, college, 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 robust runs like we’ve seen since 2023, absolutely the greenback beneficial properties over 10 years might 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 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 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 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 way of Money Stream
So there you may have it. The personal 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 making certain our youngsters might be OK
I hope to outlive the following yr with minimal automobile issues. If I can simply spend simply $1,000 – $2,000 a yr fixing the automobile sooner or later outdoors of tires, brakes, and oil modifications, I’ll contemplate it a win. Maybe if I ever get some kind of big windfall, I will purchase a brand new automobile.
However at present 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 understand what? Washing the automobile labored! Try the image under. I really feel like I am driving a brand new automobile totally free as soon as extra.
How do you overcome the guilt of spending on a depreciating asset when you understand that cash may compound into way more for you and your kids sooner or later? In the event you’ve discovered methods to faucet principal for a serious buy, somewhat than counting on money stream alone, I’d love to listen to your methods.
Options For A Extra Safe Life
In the event you care about automobile security, you must also care about defending your loved ones in case one thing occurs to you. Contemplate an reasonably priced time period life insurance coverage coverage by Policygenius. My spouse and I bought matching 20-year time period insurance policies at an awesome price in the course of the pandemic to guard our two younger kids, and the peace of thoughts we really feel is priceless.
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