My newest vehicle, other than my motorcycle, and project sports car. My daily driver is a 1995 Ford Explorer. I don’t know how many miles it has on it. The odometer doesn’t work. It had 150,000 miles on it when I bought it 3 years ago. I know I average 20 miles a gallon with it. I chase my kids and their kids in sports.
I bought the Explorer 3 years ago, and have put about 75,000 miles on it. I paid $1500.00 for it then. I pay the minimum in my state for license. We have an excise tax added to plate cost each year, until the vehicle is X years old or bottoms out on value. I pay only for Liability Insurance. The insured value would be less than I paid for it.
I don’t count in the usual expected expenses for maintenance. Tires, Oil Change, etc. These things come whether you have a new car or old. I was fortunate that that the Explorer had been taken care of and had no rust, or excessive wear on the interior.
I subscribe to these beliefs as far as vehicles are concerned. A vehicle is to get me from point A to point B. Do I need a new car for this? NO! If I were to buy a new car, (and I have had a couple. Three to be Exact. the last one I had one year, before I got laid off, seems my vehicle had already lost 50% of what I paid for it. I was able to keep it with the help of my brother. Do I want to take that kind of loss again. No way. If I were to buy a new vehicle payments would run, probably between $250-$350 a month. that would be a minimum of $3,000.00 a year in payments. for about 5 or 6 years. So I figure if I can keep my Explorer on the road for $2000.00 a year I am ahead of the game. Knock on wood I have had to spend $0, beyond the usual maintenance costs for the these 3 years. So at $500 a year ($1500 divided by 3 years equals $500 a year). Well as you can see I have thus far save $2500.00 a year on payments alone. That is $7,500.00 I have saved.
I know most of you think you have to have a new car for appearance sake, or mistakenly think you will spend more for maintenance. Think of it this way If you had an older vehicle YOU would still have put more money in your pocket. I had a cousin who only bought a new car every ten years. But he could afford it. By buying only every ten years he was able to pay cash. Pretending to make payments.(putting the money aside), he was able to take his family on many fulfilled vacations with the extra money.
Why Buy a New Car when an Older one is just as good at getting you from Point A to Point B, at a huge savings.
That Is How I See It,