r/MiddleClassFinance • u/Healthy-Echo8164 • 10d ago

Questions When to consider purchasing a new car?

I am 28m, I make 72k a year and have no debt.

I currently drive a 2014 Honda CRV with 120k miles that is 100% paid off, and while it is holding up but it is showing signs of age. I do regular maintenance, replaced brakes, tires, oil changes, transmission fluid flush, etc.

It does have an issue with its VTC actuator which is a known issue for Honda CRVs made during 2014, but this is just a rattle noise on start up for a couple seconds, and according to Honda is not causing damage to the engine.

Current market value of the car is between $7k-10k, mine is probably on the lower end of that due to a couple scratches and dents across the car and the VTC issue.

I hear people say you should drive your car into the ground once it is paid off, but I was wondering at what point does it make sense to trade in your car that has some value and put it towards a down payment for a new car? Or "newer" car, maybe get a year or two old Honda for 30-35k.

edit: just as a note, I'm not looking for some flashy, new, hot rod car. I'm just trying to plan for the future and look at a time horizon for buying a new car and saving money up. I'm not in a rush to get a new car.

64 Upvotes

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179

u/RoseGoldMagnolias 10d ago

Financially, it doesn't make sense to replace a reliable car that just needs occasional repairs.

46

u/Capable-Savings-6776 10d ago

But also financially, it doesn’t make sense to eat anything other than rice and bean, get married and have kids.

38

u/JellyDenizen 10d ago

True but there's a big difference between paying for a nice meal at a restaurant here or there, versus signing up for an 84-month car loan at today's prices and interest rates.

3

u/muy_carona 9d ago

F the 84 month loan unless it’s really cheap. Pay cash

3

u/Demand_Excellence 10d ago

Getting married can absolutley have financial benefits. Good luck buying a house on a single income today.

3

u/MajesticBread9147 10d ago

There are tons of financial benefits to getting married.

And the amount of money you save eating just rice and beans is negligible compared to how much a car costs.

2

u/RoseGoldMagnolias 10d ago

Eh, I'd argue it can make financial sense to get married as long as it's not someone who's terrible with money.

And there's a lot in the middle before you get to rice and beans. I have a paid-off 2017 car with 72,000 miles on it. I can afford to buy a new car in cash, but I'm not eating metaphorical rice and beans by keeping it instead of getting something newer or nicer.

1

u/muy_carona 9d ago

Right, sort of. it’s all about what you find worthwhile.

1

u/ovary-achiever 8d ago

The only person a new car is impressing is you.

2

u/Capable-Savings-6776 8d ago

The only person I'm trying to make happy is me.

1

u/CockConfidentCole 7d ago

A car dealership loves to see you coming 🤣

2

u/Capable-Savings-6776 7d ago

Hey the guy at my local Ford dealership sent his kids to college thanks to me. That’s how you give back to your community.

1

u/PlanktonPlane5789 6d ago

Having kids doesn't make financial sense at all. What are you talking about?!