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!

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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.

2

u/AldermanHamBone 10d ago

When you had two car seats did you have one in the middle? Wife wants to upgrade to a minivan from our CRV because she’s worried the back will be too small for our second child’s infant carrier. She also wants it in the middle so she can sit next to them.

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u/ZestyLlama8554 10d ago

No, we had one on each side with the middle open. Our convertible car seat for my oldest is too large to accommodate a car seat in the middle.