I have a 15 year old, 5 passenger car that has 250,000 miles on it, is reliable, and gets 35 miles to the gallon. By getting the most out of my used vehicle, I’ve saved $60,000 over what others have spent.
There is no reason to believe that a properly cared for car with a good reputation for reliability won’t last that long or longer. There’s nothing wrong with driving used cars, especially ones that provide good gas mileage, reasonable repair costs, and excellent reliability.
What About Used Vehicle Repair Costs?
You may try to justify a new car by stating that repair costs will be less via their warranties. Where I live, for two additional $30,000 automobiles, you would have paid out an additional $6,000 in sales tax and approximately $5,100 in licensing fees and added insurance costs. That’s not taking into account, the interest you’d have to pay if you were financing the car. And don’t kid yourself, a 0% financing rate means that the auto company recovered the finance cost in the price you paid for the vehicle.
There is no such thing as a free lunch. With well over $11,000 saved on taxes, license, and insurance costs, you can provide all the maintenance you’d need to keep a reliable used car on the road for that period.
The Cost of Luxury Cars
Buying a luxury car or SUV will result in poor gas mileage and high maintenance costs. You might look good and feel good being seen in it but you don’t need to parade around in a luxury vehicle.
Today the average new car costs $30,000 and is usually traded in when it hits 80,000 miles. That translates into many having paid out $90,000 for vehicles to last 240,000 miles, where I only paid out $30,000 during that same time period.
Since a single vehicle has provided me that level of service, I’ve saved $60,000 over what others have spent. Those monthly payments not made but saved in a CD would have resulted in that $60,000 turning into nearly $67,000 in that same time period.
Go take a look at your auto. Are you just throwing money out the window as you roll down the highway? Personally, I'd rather see that money in the bank.
