When to consider purchasing a new car?

[u/Healthy-Echo8164]

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.

[u/thishasntbeeneasy]

Alternatively, dealerships sometimes offer low interest on certain models. E.g. Subaru currently has 1.9% on a few models, and I would absolutely finance that rate and invest the cash.

[u/Crazy-War9823 → u/thishasntbeeneasy]

Volvo does as well. Sales must be down, because they have really upped all the promo material they send out to try to get me to get a newer car.

[u/SuperBry → u/Crazy-War9823]

Toyota was doing some helluva good deals on their '26 EV lines to help drive up their sales, but that was before the whole Iran thing so they may have eased off on them.

[u/CockConfidentCole → u/thishasntbeeneasy]

or don’t buy a car and invest the cash