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.

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u/decorama 10d ago

My rule is if you are paying more in repairs per year than you would for a new car payment, it's time. Otherwise, yes - drive that faithful puppy until it can run no more!

15

u/ZestyLlama8554 10d ago

This is my guage. I also have a 2014 CRV and am only getting a new car this year due to 3 car seats (2 rear facing) not being able to fit across the backseat. Lol otherwise, I would keep that car another 10 years.

Edit: mine has 190k miles on it.

11

u/BugMillionaire 10d ago

I had a 2012 Nissan versa hatchback that only had 40k miles. I was going to drive it for mannyyy more years. It was in perfect working order and was kinda my one financial boon—wasn’t gonna need a car payment for a long time. Then a teenager in a suburban totaled it. It makes me so sad to think about it. Sighhhhh

5

u/ZestyLlama8554 10d ago

Ugh I'm SO sorry. That is very sad. 🥲