The Principal Causes I Gained’t Purchase a New Automotive Anytime Quickly

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 record 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 get pleasure from each one in every 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 coming back from 10 days in Honolulu to a totally lifeless battery, two roadside help calls, and two system shutdowns whereas driving, I’m nonetheless maintaining 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 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 problem 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 provide IT up after spending all this money and time fixing IT. Sunk value fallacy maybe? However after lastly successful a two-month battle, IT‘s time to benefit from the spoils!

Beneath are the primary explanation why I’m unwilling to mild tens of 1000’s of {dollars} on fireplace simply to get pleasure from that new-car odor.

Purpose #1: I am Changing into an Previous Canine Who Doesn’t Need To Study Tips

With a brand new automobile, I’d should be taught a complete new interface – how IT drives, how the touchscreen works, tips on how to activate the A/C, and so forth. Ultimately I’d determine IT out, positive. However I’m additionally the man who didn’t understand 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 when IT involves Technology. 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 digicam, all-wheel-drive, 22” rims, and every little thing I might ask for.

Purpose #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 continually harassed about dings, scratches, and maintaining 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 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 price far more than that. I have been in my automobile thrice when the neighbor opening their door dinged mine and so they couldn’t give two farts. I not wish to struggle these nuances any extra.

As twin unemployed mother and father (DUPS), I already really feel strain to offer. The very last thing I would like is new-car-stress layered on prime of every little thing else. The truth is, the largest advantage of driving an outdated automobile is best psychological Health! New automobiles additionally include increased insurance coverage charges, which drags down our money circulation.

The Principal Purpose: Alternative Value Of Not Investing Is Too Nice

Being comfy with my outdated automobile is sweet. Avoiding stress is even nicer. However the primary cause I didn’t exchange IT is that this: Shopping for a brand new automobile now would sabotage a significant monetary objective.

I’m at present about $20,000 a 12 months in passive earnings brief of my superb monetary independence goal. At a 4% withdrawal charge, which means 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 switch the $150,000 in passive earnings 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 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 lined by passive earnings. That feeling lasted from 2012, after 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 earnings objective of $380,000 a 12 months no drawback. However slicing off $50k – $115k of capital as we speak would value me a minimum of: $2,000–$4,600/12 months 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 on account of 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 essential as a result of I’m already drained.

The Even Greater Alternative Value: My Youngsters’ Funds

IT’s laborious sufficient to justify shopping for a automobile I don’t completely want after I’m making an attempt to hit an enormous monetary objective. That is why I rolled the cube and spent $1,750 to repair the automobile from money circulation. 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 due to this fact the best compounding potential. Each greenback invested for them as we speak is dramatically extra priceless than a greenback invested for me.

And let’s be clear: they’re technically poor. They don’t have any nice expertise, no Jobs, and no capacity to generate earnings, but they’ll be coming into a labor market disrupted by AI. They might very properly be underemployed after faculty and nonetheless residing at residence with us.

The principle 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 prefer to double the funding, so IT has a larger probability 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 out of worry 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 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 Critical

If I make investments the cash I would have spent on a brand new automobile as a substitute:

Situation 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 respect $136,000 additional in her custodial funding account after faculty to launch than sitting in a brand new Tesla ranging from age 6. She’s completely completely satisfied kicking the again of my automobile’s entrance seats as is.

Situation 2:

Make investments $115,000 (Vary Rover Sport cash) for 10 years at 8%: -> $115,000 -> $248,000. I feel he would respect 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 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% charge of return is cheap. Nonetheless, if we expertise sturdy runs like we’ve seen since 2023, absolutely the greenback features over 10 years might be even larger. 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 turned apparent: IT‘s higher to take a position 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 larger within the inventory market.

I am within the camp that the larger threat is not the AI bubble popping, IT‘s lacking out on a generational life-changing alternative close to the start.

Paying for Repairs By means of Money Move

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 anything, I worth freedom and making certain our youngsters might be OK

I hope to outlive the following 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 exterior of tires, brakes, and oil adjustments, I’ll think about IT a win. Maybe if I ever get some kind of big windfall, I will purchase a brand new automobile.

However as we speak 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 what? Washing the automobile labored! Try the image beneath. I really feel like I am driving a brand new automobile at no cost as soon as extra.

How do you overcome the guilt of spending on a depreciating asset when that cash might compound into way more for you and your kids sooner or later? In case you’ve discovered methods to faucet principal for a significant buy, somewhat than counting on money circulation alone, I’d love to listen to your methods.

Options For A Extra Safe Life

In case you care about automobile security, you also needs to care about defending your loved ones in case one thing occurs to you. Contemplate an inexpensive time period life insurance coverage coverage by way of Policygenius. My spouse and I acquired matching 20-year time period insurance policies at a fantastic charge 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 a part of over 60,000 others and subscribe to the free Monetary Samurai e-newsletter. You too can get my posts in your e-mail inbox as quickly as they arrive out by signing up right here. All the pieces is written primarily based on firsthand expertise and experience.