Effectively people, after 60 agonizing days of coping with automotive salespeople, test-driving far too many automobiles, visiting two auto mechanics to diagnose and repair my present automotive, and losing an unhealthy period of time on on-line analysis, I’ve determined to not purchase a brand new automotive.
I do know this may increasingly 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 certain I might get pleasure from 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 totally lifeless battery, two roadside help calls, and two system shutdowns whereas driving, I’m nonetheless retaining my automotive.
In a coincidence, the January 1, 2026 rain-soaked automotive 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 automotive 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 automotive 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 latest mechanical drama, a roaring bull market since 2023, and a latest article on decumulating wealth, I’m passing on a brand new automotive. I can not bear to offer it up after spending all this money and time fixing it. Sunk price fallacy maybe? However after lastly profitable 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 hundreds of {dollars} on fireplace simply to get pleasure from that new-car scent.
Motive #1: I am Turning into an Outdated Canine Who Doesn’t Need To Study Methods
With a brand new automotive, I’d need to study a complete 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 understand till 12 months 5 of possession that my present automotive 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 in relation to 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 additionally has Bluetooth, parking sensors, a backup digital camera, all-wheel-drive, 22” rims, and every part 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 brand new Vary Rover Sport would make me always pressured about dings, scratches, and retaining the factor pristine. It’s like carrying a brand-new pair of white sneakers, multiplied by 1,000.
Proper now, I can park my 10-year-old automotive wherever with no second thought. If it will get dinged or bumped, I shrug. But when a brand new automotive 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 automotive 3 times when the neighbor opening their door dinged mine they usually couldn’t give two farts. I not wish 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 would like is new-car-stress layered on high of every part else. Actually, the greatest good thing about driving an previous automotive is best psychological well being! New vehicles additionally include greater insurance coverage charges, which drags down our money stream.
The Principal Motive: Alternative Value Of Not Investing Is Too Nice
Being snug with my previous automotive is good. Avoiding stress is even nicer. However the primary cause I didn’t substitute it’s this: Shopping for a brand new automotive now would sabotage a significant monetary objective.
I’m at present about $20,000 a 12 months in passive revenue brief of my best 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 residing bills coated by passive revenue. That feeling lasted from 2012, once 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 12 months no drawback. However slicing off $50k – $115k of capital at this time would price me a minimum of: $2,000–$4,600/12 months in misplaced passive revenue, eternally.
That places much more strain on the inventory market to do the heavy lifting, which I am not bullish on resulting from valuations. Managing my household’s funds already appears like a full-time job generally with 10 funding accounts. I don’t wish to drag this out any longer than obligatory as a result of I’m already drained.
The Even Larger Alternative Value: My Children’ Funds
It’s arduous sufficient to justify shopping for a automotive I don’t completely want once I’m making an attempt to hit a giant monetary objective. Because of this I rolled the cube and spent $1,750 to repair the automotive from money stream. However once I take into consideration my children’ future, it turns into nearly unimaginable 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 at this time is dramatically extra invaluable than a greenback invested for me.
And let’s be clear: they’re technically poor. They don’t have any nice abilities, no jobs, and no capability to generate revenue, but they’ll be coming into a labor market disrupted by AI. They could very effectively be underemployed after faculty and nonetheless residing 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 Enterprise 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. In fact 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 12 months. If and when it occurs, I wish to make investments as a lot as attainable for my kids’s custodial funding accounts. The present reward restrict per particular person is $19,000 or $38,000 if a pair, and we’ve got 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 automotive 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 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 happy kicking the again of my automotive’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 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, college, or Lake Tahoe. Truthfully, I simply need a dependable automotive that will get me from level A to level B safely. As a stealth wealth practitioner, it additionally feels good to drive round in an previous automotive to draw much less consideration.
An 8% fee of return is cheap. Nonetheless, if we expertise sturdy runs like we’ve seen since 2023, absolutely the greenback features 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 12 months, 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 automotive 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 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 Money Circulation
So there you could have it. The private finance nerd in me simply can’t justify splurging on a brand new automotive. I actually really feel silly doing so once I merely do not worth new vehicles anymore. Greater than the rest, I worth freedom and making certain our youngsters can be OK
I hope to outlive the following 12 months with minimal automotive issues. If I can simply spend simply $1,000 – $2,000 a 12 months fixing the automotive sooner or later exterior of tires, brakes, and oil modifications, I’ll contemplate it a win. Maybe if I ever get some kind of giant windfall, I am going to purchase a brand new automotive.
However at this time is the day to proceed investing for a brighter future. Within the meantime, I am simply going to clean and vacuum my automotive to make it really feel new as soon as extra. And you realize what? Washing the automotive labored! Try the image under. I really feel like I am driving a brand new automotive free of charge as soon as extra.
How do you overcome the guilt of spending on a depreciating asset when you realize that cash might compound into way more for you and your kids sooner or later? When you’ve discovered methods to faucet principal for a significant buy, somewhat than counting on money stream alone, I’d love to listen to your methods.
Strategies For A Extra Safe Life
When you care about automotive 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 important fee in the course of 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 part of over 60,000 others and subscribe to the free Monetary Samurai publication. You may also get my posts in your e-mail inbox as quickly as they arrive out by signing up right here. The whole lot is written based mostly on firsthand expertise and experience.
