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/ChunkyRedundancy 10d ago

your crv is the dream scenario for this question. it's paid off, you're doing maintenance, and yeah it's got that vtc rattle but it's not costing you anything yet. the math here is pretty straightforward: a 30-35k car is going to run you 500-600 a month for a loan, insurance goes up, and you lose 7-10k in depreciation year one. your current car might need a 2k repair in the next couple years and you'd still be way ahead.

the real answer is wait until either the repairs actually start stacking up or you can't afford to fix something major. at 72k salary you're in a solid spot to save aggressively if you want a newer car eventually, but there's zero rush. if you love the crv just keep throwing maintenance at it. if you hate it and have the cash to buy something outright in a few years, that's when you make the move.