Well folks, after an agonizing 60 days of dealing with car dealers, test driving too many cars, visiting two auto mechanics to check and fix my current car, and wasting an unhealthy amount of time on internet research, I’ve decided not to buy a new car.
I know this may disappoint everyone who has freely shared advice and recommendations. Believe me, listen to me. At the top of my list were the Lexus GX 550, Toyota Land Cruiser, Toyota Highlander, Rivian R1S and R2, Range Rover Sport, and Tesla Model Y Performance and FSD. I’m sure I could enjoy all of these cars, all priced between $50,000 and $115,000 out the door. That is exactly the problem.
The Silver Lining After Returning to Hawaii
Despite 10 days back in Honolulu on a completely dead battery, two roadside assistance calls, and multiple system shutdowns while driving, I still keep my car.
In a twist of fate, the rain-soaked traffic jam on January 1, 2026 turned out to be a blessing. A full battery discharge while I was away seems to have reset the hard modules causing the bug to come out. Before I left on my trip, the Low Battery Warning showed 13 out of 15 cold starts, despite changing the battery. Since returning the car has behaved well. No Low Battery Warning. No scary “System Will Shutdown in One Minute” message. Twenty days clean and counting.
With this problem seemingly resolved, I’m stuck with my 10-year-old car for at least another year, but hopefully three and a half years longer. It only has 67,500 miles on it, and I only drive about 6,300 miles a year.
So yes, aside from the recent drama, the roaring bull market since 2023, and the latest article about accumulating wealth, I am passing on a new car. I can’t bear to give it up after spending all this time and money fixing it. But below are the main reasons why I’m not willing to pay tens of thousands of dollars just to enjoy that new car smell.
Reason #1: I’m Turning into an Old Dog Who Doesn’t Want to Learn Tricks
With a new car, I will have to learn a new interface – how to drive, how to operate the touch screen, how to turn on the A/C, etc. I finally figured it out, for sure. But I’m also the guy who didn’t realize until the fifth year of ownership that my current car has an automatic trunk release button. again another button to heat the steering wheel.
I am officially becoming a father when it comes to technology. He refuses to upgrade his 1998 Toyota Avalon and I don’t want to upgrade my 2015 Range Rover Sport that still has smelly leather seats. It has Bluetooth, parking sensors, a backup camera, all-wheel drive, and everything I could ask for.
Reason #2: I don’t want the stress of driving an expensive new car
Spending $60,000 on a Tesla Model Y Performance or $115,000 on a Range Rover Sport will make me constantly stress about dings, scratches, and keeping the thing clean. It’s like wearing brand new white sneakers, multiplied by 1,000.
Right now, I can park my 10-year-old car anywhere without a second thought. If it’s dinged or cracked, I lift it. But when a new car is put into a supermarket? I can be angry. And my happiness is more important than that. I have been in my car three times when a neighbor opened his door and broke mine down. I don’t want to fight with these nuances anymore.
As two unemployed parents (DUPS), I already feel pressured to provide. The last thing I need is the stress of a new car placed on top of everything else. In fact, the biggest benefit of driving an older car is better mental health! New cars also come with higher insurance rates, which drags down our cash flow.
Main Reason: Opportunity Cost Not Investing Too Much
Being comfortable with my old car is great. Avoiding stress is even better. But the number one the reason i don’t replace it is: Buying a new car now will hurt a bigger financial goal.
I am currently averaging $20,000 a year in passive income where I am reaching my goal of financial independence. With a 4% withdrawal rate, that means I need at least $500,000 more in investments.
Ever since I bought my house in 2023, I’ve been working to earn more, save more, and invest better to make up for the $150,000 in lost income. I made great progress, partly because of the bull market in stocks. The change of two tenants in 2025 was also a blessing, as it allowed me to reset the rent to market rates and reasonably increase the rent.
So spend $50,000–$115,000 in a diminishing asset it sounds like an unforced error. I know the wonderful feeling of having 100% of your desired living expenses covered by your income, and I desperately want to get back to that situation.
If I grind for another 1–2 years and the market cooperates, I should reach my $380,000 annual income goal no problem. But cutting $50k – $115k cash today would cost me at least: $2,000–$4,600/year in lost income, forever.
That puts more pressure on the stock market to do the hard work, which I can’t do because of the valuation. Managing my family’s finances already feels like a full-time job at times with 10 investment accounts. I really don’t want to drag this out unnecessarily because I’m already burned out.
The Biggest Opportunity Cost: My Children’s Finances
It’s hard enough to justify buying a car I don’t absolutely need when I’m trying to hit a big personal goal. That’s why I rolled the dice and spent $1,750 on car repairs with cash flow. But when I think about my children’s future, it becomes difficult to dismiss it.
At ages 6 and 8, they have a very long time horizon, so they have a lot of potential for compounding. Every dollar invested in them today is worth more than a dollar invested in me.
And let’s be clear: they are technically poor. They don’t have good skills, they don’t have jobs, and they don’t have the power to make money, yet they will be entering a labor market disrupted by AI. They may be unemployed after college and still live at home with us.
The main way I protect them is by investing heavily in AI on their behalf.
I have already financed a new one $200,000 Fundrise Venture account scheduled for August 2025. Ideally, I would like to double the funding, so that it has a chance to grow into millions by the time they complete the insurance course. Of course, I will not tell them that they have this insurance.
Furthermore, I believe there will be a 10% pullback in the stock market this year. If and when it happens, I want to invest as much money as possible in my children’s custodial accounts.
This is where the Maths Get Bad
When I invest I you would have spent instead of a new car:
Scenario 1:
Invest $50,000 (Tesla Model Y money) for my daughter for 13 years at 8%: -> $50,000 -> ~$136,000. I think he would appreciate the extra $136,000 in his investment account after he drops out of college than living in a new Tesla starting at age 6. He is more than happy to kick the front seats of my car as he is.
Scenario 2:
Invest $115,000 (Range Rover Sport money) for 10 years at 8%: -> $115,000 -> $248,000. I think he would be happy to have $248,000 to pursue his career dreams, instead of just joining an industry community that he considers respectable.
That is money that changes the life of a growing child. That’s right not it changes my life to drive a nice car to the supermarket, school, or Lake Tahoe. Honestly, I just want a reliable car that gets me from point A to point B safely.
An 8% rate of return is reasonable. However, if we experience a strong run like we have seen since 2023, the dollar’s net gain over 10 years will be even greater. The Fundrise Innovation fund, for example, returned 43.5% in 2025.
Once I saw the numbers, it became clear: It is better to invest in their future than to drive a new car that I absolutely do not need.
So instead of selling Treasuries to buy depreciating assets, I put expiring Treasuries into traditional AI investment funds, and an open-ended venture fund. I will also use the money to buy any significant dip of 3% or more in the stock market.
I’m in the camp that the biggest risk isn’t the AI bubble popping, it’s missing the opportunity to change the lives of a generation near the beginning.
Paying for Repairs with Cash Flow
So there you have it. The financier in me just can’t justify buying a new car. I honestly feel stupid for doing that when I don’t like new cars anymore. Above all, I value freedom and peace of mind.
I hope to survive next year with minor car problems. If I can spend just $1,000 – $2,000 a year on future car repairs, I’ll consider it a win. Maybe if I ever get some kind of big windfall, I’ll buy a new car.
But today is the day to continue investing for a bright future. For now, I’ll just wash and clean my car to make it feel like new again! And you know, washing the car worked! I feel like I’m driving a new car for free.
How do you overcome the guilt of using a depreciating asset when you know that the money may add up to much more for you and your children in the future? If you’ve found ways to tap into principal to make big purchases, rather than relying on cash flow alone, I’d love to hear your strategies.
Suggestions for a Safer Life
If you care about car safety, you should also care about protecting your family if something happens to you. Consider an affordable term life insurance policy through Policygenius. My wife and I took out 20-year policies at a great rate during the pandemic to protect our two young children, and the peace of mind we feel is priceless.
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