Effectively 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 likely disappoint everybody who generously shared recommendation and proposals. Imagine 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’d take pleasure in each certainly 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 lifeless battery, two roadside help calls, and a number of 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 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. 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 automobile for no less than 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 can not bear to present it up after spending all this money and time fixing it. However under are the primary the explanation why I’m unwilling to gentle tens of hundreds of {dollars} on fireplace simply to take pleasure in that new-car odor.
Purpose #1: I am Changing into an Previous Canine Who Doesn’t Need To Study Methods
With a brand new automobile, I’d should study an entire new interface – the way it drives, how the touchscreen works, activate the A/C, and so forth. Ultimately I’d determine it out, positive. However I’m additionally the man who didn’t notice till 12 months 5 of possession that my present automobile has a button to mechanically open the trunk and one other button to warmth the steering wheel.
I’m formally turning into my father in terms of know-how. 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 has Bluetooth, parking sensors, a backup digicam, all-wheel-drive, and every little thing I may ask for.
Purpose #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 Vary Rover Sport would make me always pressured 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 wherever 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 price far more than that. I have been in my automobile 3 times when the neighbor opening their door dinged mine. I not wish to battle these nuances any extra.
As twin unemployed mother and father (DUPS), I already really feel stress to offer. The very last thing I would like is new-car-stress layered on high of every little thing else. The truth is, the greatest advantage of driving an previous automobile is best psychological well being! New automobiles additionally include larger insurance coverage charges, which drags down our money movement.
The Major Purpose: Alternative Price Of Not Investing Is Too Nice
Being snug with my previous automobile is good. Avoiding stress is even nicer. However the primary cause I didn’t substitute it’s this: Shopping for a brand new automobile now would sabotage a significant monetary purpose.
I’m at present about $20,000 a 12 months in passive earnings quick of my splendid monetary independence goal. At a 4% withdrawal charge, which means I would like 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 exchange the $150,000 in passive earnings I misplaced. I’ve made nice progress, partially 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 looks like an unforced error. I do know the superb feeling of getting 100% of your required residing bills lined by passive earnings, and 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 earnings purpose of $380,000 a 12 months no downside. However slicing off $50k – $115k of capital right now would value me no less than: $2,000–$4,600/12 months 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 because of valuations. Managing my household’s funds already looks like a full-time job typically with 10 funding accounts. I actually don’t wish to drag this out any longer than crucial as a result of I’m already burned out.
The Even Greater Alternative Price: My Children Funds
It’s laborious sufficient to justify shopping for a automobile I don’t completely want after I’m attempting to hit a giant private purpose. 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 youngsters’ future, it turns into virtually unattainable to splurge.
At ages 6 and eight, they’ve the longest time horizon of all, and due to this fact the best compounding potential. Each greenback invested for them right now is dramatically extra invaluable 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 skill to generate earnings, but they’ll be getting into a labor market disrupted by AI. They might very nicely be underemployed after school and nonetheless residing at dwelling with us.
The principle manner 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 hundreds of thousands by the point they graduate as an insurance coverage coverage. In fact I am not going to inform them they’ve this insurance coverage coverage.
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.
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 an alternative:
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 believe 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 completely satisfied 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 an alternative 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, college, or Lake Tahoe. Actually, I simply need a dependable automobile that will get me from level A to level B safely.
An 8% charge of return is affordable. Nevertheless, if we expertise sturdy runs like we’ve seen since 2023, absolutely the greenback good points over 10 years shall be even larger. 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 take a position for his or her future than drive a brand new automobile that I do not completely want.
So as an alternative 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 larger 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 By Money Circulation
So there you may have 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 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, I’ll think about it a win. Maybe if I ever get some sort of giant windfall, I am going to purchase a brand new automobile.
However right now 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 already know what, washing the automobile labored! I really feel like I am driving a brand new automobile totally free.
How do you overcome the guilt of spending on a depreciating asset when you already know that cash may compound into much more for you and your kids sooner or later? In case you’ve discovered methods to faucet principal for a significant buy, moderately than counting on money movement alone, I’d love to listen to your methods.
Options 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 inexpensive time period life insurance coverage coverage by way of Policygenius. My spouse and I received matching 20-year time period insurance policies at a fantastic charge through the pandemic to guard our two younger kids, and the peace of thoughts we really feel is priceless.
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