I deserve a new car, right? Wrong.

I deserve a new car, right? Wrong.

“YOU WORKED HARD to graduate, so Nissan wants to reward you with an easy, stress free buying experience with our College Preferred Pricing.” – Nissancollegegrad.com

“YOU’VE CHOSEN THE ROAD YOU’RE ON. NOW PICK A RIDE TO GO WITH IT.” – Gmcollegediscount.com

“YOUR ACHIEVEMENT DESERVES RESPECT AND REWARD.” – Hyundaiusa.com

“Hey, you graduated college. Let Honda Financial Services help you celebrate.” -Hondafinancialservices.com

“If you just got out of college, you’ll be starting a career and making that transition from the academic world to the working world. You have better things to do than worry about how you’ll get to your job.” –  Mitsubishicars.com

“With the Ford and Lincoln College Student Purchase Program, you pick out your ride — and then add up the savings!” – Ford.com

“YOU’VE EARNED IT, NOW OWN IT.” – Dodge.com and Jeep.com

I could drop the mic and end the post here, but I’ll continue.

I very clearly remember the day that I was scrolling through my Facebook news feed a few weeks after I had graduated college. I didn’t have a job yet, and I had just moved back home to start the search. I saw this awesome looking picture of a red Dodge truck tucked in-between some friends’ recent irrelevant posts that said something along the lines of: “Congratulations on your degree, you deserve a new truck!”. Heck yeah. I had earned a new truck, and it was time to reward myself.

College had made my brain hurt, and not only would a new truck have made me feel better, but it would have also shown other people that I was as awesome as I thought I was.

Fortunately, (this will look strange) I was broke and had $40,000 in student loan debt that I hadn’t made a payment on yet. My feeble mind hadn’t even realized that interest had already started compounding on my loans. If I had been able to scrounge some cash together at the time, I would have tried to buy that truck – because I deserved it. Duh.

That was the first time that I had been made aware of such awesome targeted marketing. Looking back on it, Dodge had a pretty good strategy for getting people to buy new cars as soon as they started making any significant amount of money. Not only could they get some business in the short term, but they could train me to become a new car buyer with their company for the foreseeable future!

$$$$$

This may seem weird, but I have no issue with the marketing strategies that car companies use to get young people into cars. What can I say, I am a fan of capitalism and not ashamed to say it at all. I’m sure some people may try to convince themselves that this is predatory advertising – taking advantage of the poor college graduate that doesn’t know any better and needs instant gratification for their educational achievement. I totally disagree. I was an adult, it was my own fault that I didn’t know any better. Also:

If a sentence and a picture is enough to convince me to take on $30,000+ in additional debt, then I have some larger issues to handle.

Let me be clear about something before I go on. You don’t deserve a new car. You don’t deserve a reward. You don’t need help celebrating. You don’t deserve anything for graduating college at all. Ever.

If your feelings are hurt by the previous sentences, I’d be happy to reward you with a celebratory band-aid for a 1000% markup, because you deserve one.

 

photo 4

Imagine if this was the number in your savings account.

I didn’t buy the new truck, and my net worth thanks me for it. I have had the same car since my first year of college, and I proudly drive it around every day. It is a sweet bright red Chevy Colorado with almost 90,000 miles on it, that cost about $12,000 brand new because it was a demo car.

My parents are incredible people, and they bought it for me so that I would have a reliable car going to college. (I know that this isn’t the case for everyone, but I also know several people my age that were lucky enough to have their parents do something similar for them as well. Also, my parents might read this blog.)

My car doesn’t have power windows, power locks, a key fob with a panic button, fancy gadgets, seat adjustments, or a back row. It doesn’t even have the handles that passengers can hold on to when I take a turn too fast – which can be amusing from time to time. It DOES have cruise control, which I have always thought was silly because it’s the least useful option out of everything that I just listed. 

I used to be a little self conscious about my car, because I thought it was a pretty ridiculous looking car for an adult professional to be driving around. I can’t tell you how many times people have asked me when I am buying a new car.

I have a job now and I can “afford” it – or so I am always told. It also has or has had the following issues:

1) The brakes feel a little soft because I changed them myself (to save money of course).

2) It used to have a really awkward, rough idle.

3) It had a check engine light on for a while.

4) It used to have a faulty theft-lock that would literally not allow me to start my own car, but I fixed that with the help of Youtube and electrical wire from Home Depot.

5) The A/C fan motor squeaks. I fixed that once by myself, which would explain why the squeak came back again.

6) My speakers rattle when the radio volume is turned above 12, which is hands down the most infuriating thing on this list.

So why do I keep it when I can easily apply for a car loan and get something nicer? Easy. I started to notice that I had more money than my friends…and I’m a teacher. Weird right?

My Chevy Colorado is like a Ferrari for my bank accounts.

My truck has been paid off for a few years now, which means that my yearly auto expenses are drastically lower than everyone else that I know who has a car payment. Because the car is older I have the cheapest liability insurance possible, which keeps a ton of money in my pocket every year as well (It costs less than $500 a year – which is awesome).

I have had some maintenance issues with the car, but nothing catastrophic or over $1000…yet. Even when I do have that type of repair cost, I would still come out better at the end of the year than the people my age who have financed a new car. I would come out better if I had 3 major repairs in a row. Unfortunately I know several people that cite car maintenance costs as an excuse to finance their new ride.

Benjamins

Rolling up these windows for all of these years will come in handy when I’m rolling up my $100 bills later on.

My biggest and maybe most powerful advice for Millennials is to keep whatever car you have when you graduate from college for as long as you can keep it. Don’t let the masses tell you that you deserve a new one – they are poor and will envy your financial freedom later on. I will keep mine until the wheels fall off, and then I will buy another used one with cash.

It is SO easy to listen to advertising and start believing that a low monthly payment won’t hurt that much, but it could set you back a long way when it comes to building wealth as a young person and getting out of debt.

The average new car costs $32,086, not including accrued interest at the end of your loan term. With that amount of money, you could pay down your student loans, invest it in the stock market for the next 30 years and turn it into $559,881.52 at a 10% return, or use it to purchase your first real estate investment property. All of those things are awesome. The main point is that you have options to start your path to becoming wealthy or become debt free.

When you purchase a new car you have options like seat warmers. Wonderful. I haven’t even mentioned the unbelievable amount of depreciation that your shiny rolling debt burden will take as soon as your roll off of the car lot feeling temporarily happy (Hint: That feeling will wear off, and it will be replaced with buyer’s remorse about a month later when you realize that you are trapped for the next 6 years).

You can buy a brand new car later in life when you are wealthy and the cost isn’t more than your total net worth. If you have a older car – you HAVE to take advantage of the financial opportunity. I have, and I am doing pretty well for myself lately because of it.

What do you think? Do you drive an older car, and is it worth it? I’d love to hear your opinion, let’s talk about it in the comment section below. 

Live differently, your bank accounts will thank me later. -M$M

photo 3

It’s like free entertainment when people reach up here for the nonexistent handle when I take a hard turn. 🙂

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64 comments… add one
  • Sean Feb 16, 2015, 11:21 pm

    Couldn’t agree more. Every time I argue this to friends, I hear: “but maintenance.” Let’s point out the obvious. New cars require the same maintenance as older ones. Repairs are more likely, however, but when you pocket that $300 a month one can easily handle virtually anything you’d have to replace.

    I also have started repairing things myself. Most everything is simple. With YouTube and car forums, this couldn’t be easier for most repairs. Keep it up!

    • Millennial Money Man Feb 17, 2015, 12:03 am

      Exactly! It’s weird how people try to justify the cost of a new car. I’m glad some other people see the value of pocketing that would-be car payment. Glad you enjoyed the post!

  • Kevin Jankowski Feb 17, 2015, 2:15 am

    My wife and I are still driving around her 1999 Ford Mustang. It has 198,000+ miles and I have to unhook the battery every time I want to leave it for more than a day. (Long story… It’s not the battery). The amount we save because of this car is Incredible!!!

    Although I did purchase a new car 2 years ago, we got the most basic model Honda Civic with a 0.90% interest rate and we will pay it off in 1 more year. Because we have added $100 to our $295 monthly payment.

    Overall great advice. Loving the blog Mr. MoneyMan!!!

    • Millennial Money Man Feb 17, 2015, 3:13 am

      That’s awesome Kevin! Thanks for reading, congrats on being close to paying the car off!!

  • Victor @ fitfinancialfocus Feb 17, 2015, 1:29 pm

    Couldn’t agree more, However I purshased my scion xB brand new back in 2005 and payed off as soon as possible throwing extra money into it.
    Once I payed it off I purchased a 2010 camera brand new, kept both cars one for the weekend and one for the week. With gas prices going up buyers remorse set in real quick. Wish I knew about financial blogs then haha.
    sold the camera about 2 years after and have been more than happy with the scion since and no longer feel the need to purchase a new gas gustler until to quote you money man”until the wheels come off”.

    • Millennial Money Man Feb 19, 2015, 1:24 am

      That’s awesome that you paid it off quickly! Keep that car until it doesn’t work anymore, your bank accounts will thank you later. 🙂

  • Warren Blackmon Feb 19, 2015, 5:14 am

    First off love the blog its got tons of info that I’ve honestly never thought about. I’ll be graduating next year and I feel more than prepared to take on my own finances thanks to you. Now about cars, I was always taught when you buy a new car pay it off in three years and keep it for at least ten. That way you have seven years without a note. What are your thoughts on this?

    • Millennial Money Man Feb 20, 2015, 3:24 am

      Warren – Glad you enjoy the website and REALLY glad that I could help your financial future in any way. As far as cars – I don’t think that anyone should buy a new car if they don’t have enough cash in the bank to pay for it outright. This is extreme – but remember, the majority of people are not wealthy because they do what everyone else does (finance cars and houses that they can’t afford etc.). Imagine if you bought 2 used cars that lasted 5 years each for half the price of a new car that lasted 10. Any way you slice it, new cars are a money loser and should be looked at as a luxury item and nothing more. Buy used or keep the old one that you have now for as long as you can and pocket the money that you aren’t paying on a new car.

  • jim Feb 23, 2015, 10:35 pm

    Right on the money… I drive a 15year old truck with 200K miles on it, and just the other day a guy out walking his dog stopped in front of my 350K (paid off) house and commented on what a nice truck I have. In Texas, a pick up truck…is a pick up truck …no matter what the age. The fact that my truck only gets 11MPG is no concern to me. When it needs repair, I repair it, and keep on trucking. It is cheaper to keep her…
    That’s how I paid off my house so soon.
    But I would recommend that you “invest” the money you save, and not just “pocket it”, that way you can “afford” as a luxury a new car later in life when you have “earned it”.
    By the way I am not a millennial, I am a baby boomer and have been doing what you are preaching for most of my adult life and have the net worth to prove it. Most people just don’t get it till it’s to late – and then it’s too late. You on the other hand, have seen the light early and have time to build a fortune. Remember, time can be you friend or your enemy.

    • Millennial Money Man Feb 24, 2015, 4:48 am

      Jim – You seem like a really smart guy.

  • Brian @ Debtless in Texas Feb 24, 2015, 2:11 am

    SO TRUE. I bought a brand new convertible camaro when I got back from Iraq (stupid) – it set me back years.

    • Millennial Money Man Feb 24, 2015, 4:47 am

      Brian – Thank you for your service, I can’t tell you how much I appreciate it. As for the car…at least you realized the mistake – I’m sure you will be fine. Most people never even get that a new car has set them back.

  • Thea Feb 28, 2015, 7:59 pm

    Great post. I remember seeing graduate offers for new cars posted around my university and thinking it was absurd to encourage already indebted students to take on even more debt. That being said, I worked exceptionally hard to finish my undergrad with no debt, so I bought a $3000 used beauty when I graduated which I paid off during that first summer as a new grad. It was no brand new Nissan, but it got me around safely for a number of years which is all a car is really meant to do.

    • Millennial Money Man Mar 1, 2015, 4:11 am

      Thanks! Glad you liked it. Sounds like you were way more enlightened than I was in college! If I hadn’t met the right people and learned about finances I’m sure I’d be driving an awesome debtmobile right now.

  • Francesca @onegrloneworld Mar 6, 2015, 4:45 pm

    This post was SO good! Finally someone who understands! Well actually, it’s funny, as my friends are getting older and their pockets dwindle they are starting to understand why I was so frugal (ahem, *cheap*) over the last few years. Aside from traveling I held back in every unnecessary area which has allowed me to use that extra money how I like or save it! My car doesn’t have automatic anything and I’ve had it since college and I will keep it until it doesn’t work anymore! No car note I can’t afford over here!

    • Millennial Money Man Mar 15, 2015, 6:07 am

      Great job on keeping your car!! I used to be offended when people called me “cheap”, but I’m at the point where I feel bad for those people…they will end up struggling financially in a few years. Thanks for reading!

  • Chonce Mar 12, 2015, 8:59 am

    I love how blunt you were with this post and I couldn’t agree more. Graduating college is just the beginning and recent college grads (especially the ones with debt) could use all the money they can get in order to get on their feet. An expensive brand new car just doesn’t fit into that equation. I actually had to get another car right after college because my ’97 Saturn just shut down on me. I went used though again and when the sales rep started on me about all that “recent college grad special” crap I just shut it down thankfully.

    • Millennial Money Man Mar 15, 2015, 6:01 am

      Thanks! Really glad you liked the post. You’re right, everyone makes it seem like college is the finish line.

  • Michelle Mar 14, 2015, 11:57 am

    I used to have this way of thinking, but I have changed!

  • Maureen P Mar 24, 2015, 8:41 pm

    great post, I was just having a similar conversation with my 14 year old (why we don’t have new car when both our cars are paid off). Even maintenance on a vehicle with 128,000 miles is far, far less than a new car payment and higher insurance

    • Millennial Money Man May 25, 2015, 12:10 pm

      YES YES YES. Maintenance should not be part of the conversation when it comes to financing a new car. Good job!!!

  • Daniel May 19, 2015, 9:41 pm

    I can’t tell you how many regrets I have. I wish I would have changed my habits and way of thinking years ago. Awesome advice man.

    • Millennial Money Man May 25, 2015, 12:11 pm

      Thanks, by looking at your website it looks like you are making a nice comeback :). Good luck!!

  • Austin Carlson Jun 21, 2015, 11:38 pm

    I am really starting to like your writing style, and this article in particular. My mom is planning on buying me a used civic for college as a reliable car to keep as long as I can through college after I graduate and I appreciate that even more after reading this. The plus is I’m also keeping my 20 year old truck so I have a back up vehicle, useful for moving to campus and I’ll also keep that one as long as it runs. My grandfather took fantastic care of it and so have I, and I’ve never had major repairs due to preventative maintenance. It’s super low cost of ownership and even gets good gas mileage. I don’t know what’s causing your rough idle, but try buying a can of seafoam. It’s an injector cleaner plus a ton more, really good for your engine It’s about 11 dollars and I know a lot of people that swear by it. Just add it straight into the gas tank when you fill up. I can’t gauruntee it’ll fix the idle, but it might be worth a shot.

  • Austin Carlson Jun 21, 2015, 11:48 pm

    Also, kudos on doing your own brake job. I did mine not too long ago, and saved a ton of money on labor. It helps that I love working on my truck anyways, saving money just makes it sweeter. Oreillys does a lot of cool stuff for free like check engine light code reading. They’ll tell you what’s wrong with your car for free, and much more. Not sure if you knew that or not.

    • Millennial Money Man Jun 23, 2015, 10:31 am

      Thanks Austin! Brake job wasn’t too hard, but I’m not sure if I’ll do it again or not. I WANT to say that the idle is due to a loose wire harness, but I’m not sure. I’ve had it fixed once at a mechanic and it came back. Passes inspection…so oh well.

    • Yetisaurus Feb 14, 2016, 6:01 pm

      Great post! I laughed out loud several times. Also, ditto what Austin said about doing your own brakes. I’ve been doing mine for the past 8 or 9 years, and it saves so much money each time that I think I’ll just keep doing it forever. I’m 36 years old and a attorney with somewhat limited free time, but still it seems worth it for me to spend a couple hours doing the brakes instead of paying $300 or 400 an axle for someone else to do it.

      If your brakes feel soft, it might be the pads you chose, or you might need to add a little brake fluid or bleed the brake lines. Pads might be the most likely culprit. I’ve learned after this many years of doing it but it’s best to buy the OEM brake pads from a dealer or somewhere online (some dealers sell on Amazon for pretty cheap), rather than going to AutoZone and getting the nearest replacement. But it’s your call, of course. 🙂

      • Millennial Money Man Feb 14, 2016, 7:06 pm

        I think I needed to bleed the brake lines. I actually sold that car recently (the only complaint from the guy who bought it was about the brakes…go figure).

  • Your Roaring Twenties Jul 3, 2015, 10:47 am

    I love the mindset here. What are your thoughts on people like MMM who basically bike everywhere and forgo a car altogether?

    • Millennial Money Man Jul 3, 2015, 1:16 pm

      Kinda depends on where you live really. In Texas everything is fairly spread out. It would have taken me an hour to get to work on a bike with my old job and I would have had to shower when I got there. If you live in a place where everything is close it sounds like a cool idea.

  • Frugal Millennial Jul 23, 2015, 7:06 pm

    Great read! I drive a 15 year old car with over 100k miles on it. No need to waste money on a new car when I can instead use that money to pay off my student loans faster.

  • Summit of Coin Aug 12, 2015, 4:28 pm

    I totally agree. To make a point on my website, I even calculated my monthly auto repair expenses for my 2005 Pontiac Grand Prix. I have owned it for six years, two of which have been debt free. I wish that I wouldn’t have purchased it, but now I own it free and clear. Last year, I kept a very detailed record of expenses and was able to calculate my monthly auto repair costs. It was $99 per month in 2014. This included new tires at $400, oil changes and a $600 repair. So, even with two pretty expensive repairs, I still paid less per month than somebody buying a new car on debt. I am a huge fan of keeping my older car and saving the difference. My hope is that this car will last at least 4 more years. Ten year ownership prior to purchasing a new vehicle. That’s my goal!

  • KG Oct 29, 2015, 8:58 am

    I completely agree with your thought process (along with many of your readers) as it will get you very far in life! Good job! 🙂

    I would like to share my perspective from personal experience though. I have lived very frugally (through college, med school, specialty residency, and the last 8 years after I finished) but now I am having a really hard time spending any money on myself. In the last 8 years after graduating, we have paid off about 525k in student loans and build our net worth to over 3 million with no inheritance/lotto etc. Our retirement portfolio is approx 2m. Also, my wife is a school teacher that has been a SAHM for the last 7 years so her income has been negligible. My income for 2015 will be approx 850k (my income for the first 4 years was 200k and it has climbed since) and we have saved about 500k so far this year. I drive a 14 year old civic with 190k miles and I would like to upgrade to a 2013 Infiniti G37 priced at 26k. However, I find myself unable to spend the money to do so at this point!

  • MB @ Millennial Boss Jan 2, 2016, 3:44 pm

    I made the new car mistake last year after owning 10-20 year-old-cars prior. Woops! Depreciation and car payment are all eating away at me! Big mistake that I am trying to get out of now.
    In the personal finance world, there seems to be a bit of humble bragging about how old people’s cars are. The “I drive a car with 200,000+ miles on it” is a badge of pride. I find that funny and great about the community!

    • Millennial Money Man Jan 25, 2016, 4:09 pm

      Haha I’ve noticed that too and love it. I think it’s because people that drive crappy cars have to find a silver lining and a reason to be proud of their decision. I would LOVE a new car, but it’s just such a horrific financial decision that I can’t do it.

  • DTS Feb 9, 2016, 12:25 pm

    I was raised to drive cars until The. VERY. END (and also, not to listen to broke ass friends who are happy being broke whilst driving the latest & greatest, LOL). If you have a vehicle that works and is safe, keep it. There are very simple and inexpensive things you can do to upgrade it — no need to buy a new car to get bluetooth for example. Keep on truckin’ (and enjoy growing your resources).

    • Millennial Money Man Feb 9, 2016, 12:58 pm

      Heck yeah! I’ve gotten to the point where I feel sorry for people that buy new cars. They have no idea what kind of wealth growing opportunities they are missing out on by tying up all of their cash in a depreciating asset. Crazy.

  • Sally Ferguson Feb 13, 2016, 11:16 am

    Good reminder that the clunker I drive is attractive to the budget. It was my dad’s. It’s paid off. And it keeps me from being prideful about my ride. 😉

  • MWell Mar 8, 2016, 9:30 pm

    Hello! Really enjoy reading your post. There’s a trending mindset in millennials to have “treat yo self” moments. Do you mind provide information on how to save on car maintenance? I think most college grads have no ideas so they would just go to their dealers out of convenience. My car is getting to 50,000 miles so i have been exploring my options in the way to best maintain my car and keep unnecessary spending due to lack of knowledge.

  • Ann Jul 25, 2016, 7:51 am

    Perfect reasoning! I could not have said it better myself! And like you, I was lucky to have parents help me with a car, and college. But my husband wasn’t so lucky…….and we DO still use the car I had in school, it looks decent and runs good……works for me! 🙂 But sadly nowadays, it’s not cars everyone is buying…..it’s those Iphones. :/ Ridiculous. I know it isn’t as much as a car, by any means, but for a phone that has a new one come out every couple of years……yeah, it could get up there real fast! And I know a few folks who BUY the newest and latest gadgets just because. Guess what….I just got my 1st IPhone…..for $189, and it has the latest Apple updates, so it’s good enough for me. Just because you CAN and think you DESERVE it doesn’t mean you SHOULD! (Oh, and love your sub-title….”Anti-Entitlement Advice”) 🙂

    • Millennial Money Man Jul 25, 2016, 10:21 am

      Luck is definitely part of it – we were incredibly lucky that our parents were able to provide cars for us in our high school years. A lot of people don’t have that luxury, so we don’t ever take it for granted.

      I’m with you on the phones, I hate how much they cost. There are other bloggers out there that use mega cheap service, I’m just not sure if I could do it since I actually work from my phone a lot. The worst is that they make it so hard for you to just go in and pay cash for one of these stupid things. They try to scam you into financing a freaking phone. *sigh*

      • STBJ Jul 28, 2016, 12:40 am

        I am sure the car I bought one year out of college robbed me of 100K in investment growth. Great advice.

  • Patrick Aug 25, 2016, 8:49 pm

    This article is so true. I have a 2012 Cruze that I bought last year then turned around and bought a brand new 2016 Equinox. When I do my budget I just look at it and shake my head that $600 a month goes towards car payments. I’m obviously upside down in both cars. I’ve been throwing extra money at the Cruze and Equinox to pay them off quickly and we will drive them until the wheels fall off. Then next time I will find cheap used cars and pay cash. Just started reading your stuff and love it. Motivates me to get these paid off and quit living a life full in debt.

    • Millennial Money Man Aug 25, 2016, 9:19 pm

      Hey Patrick – thanks so much for commenting! I’m trying to get more readers in the conversation so it definitely helps every time someone new jumps in.

      You’re doing the right thing for sure, just keep chipping away and then drive them for as long as you possibly can. Just breaking the cycle of financing cars will put you way ahead of most people in a relatively short period of time. Then you’ll be able to use that money for whatever else you need to! You might like this post on getting rid of car payments: http://millennialmoneyman.com/how-to-get-rid-of-your-car-payment-the-ultimate-guide/

  • Eric Sep 10, 2016, 5:36 pm

    I love the quote you have: “My Chevy Colorado is like a Ferrari for my bank accounts.” So true!! I had a Ford Focus for 8 years and it treated me so well! Every month I was happy I didn’t have to make car payments. I do have a relatively new Prius now, but I supplement my income with Uber.

    • Millennial Money Man Sep 11, 2016, 12:06 am

      Hehe yeah I have no idea where that stuff comes from when I write! 🙂

      I’d actually consider Uber, but I think my car is a too old (it’s a 2004)!

  • Kyle Oct 8, 2016, 2:51 pm

    I drive a 2001 Focus Station Wagon, it gets plenty of sideways looks from coworkers when it is my turn to drive for lunch, but it is totally worth it. I bought a used 2010 F150 right out of college, and racked up $20k in debt. Switching to that little focus saved me over $500 a month in car payment and gas money for my commute. I’m laughing all the way to the bank!!! On my third year of driving that car, and finished paying off all student loans at the end of last year! Now we have no debt but our house, and starting to get really healthy retirement funds, super exciting times for my family!

    • Millennial Money Man Oct 8, 2016, 9:41 pm

      Very cool, congrats Kyle! Sounds like you’re killing it. I’m in the same boat – I drive a $6,000 Yukon now. Old cars rock!

  • Andrea Oct 18, 2016, 12:25 pm

    I’m a millennial, I’m 24, I’m ABSOLUTLEY debt free (except for my house which is awesome), I have a nice cushion in my savings account and still have my old Nissan from college as well.

    I was debating getting into debt for a new car but had almost the exact same thoughts you listed on your post. The difference, I am happy to say that you gave me re assurance. I am in a great place financially and hate the thought of getting in debt. I’ll wait until old Bertha gives me her last breath.

    I truly appreciate it! Thank you

  • Cory Oct 30, 2016, 9:07 pm

    This was an awesome post for me to read. Since graduating college I’ve “rewarded myself” with 5 brand new trucks (YES 5). Finally after I had to FINANCE my upside down negative equity in 2010 reality set in. I buckled down and paid off $48k in car debt in 3 years, and for the last 3.5 years haven’t had a car payment. Since then I’ve managed to significantly increase my retirement and investment savings – and upgrade to a nice home. During that time I even paid cash for an old Jeep CJ7 that I’ve always wanted.

    Now I’ve been blessed with a nice increasing income and bonuses, and I work for a company that still has a pension. So lately I’ve been thinking – you know my F150 is almost 6 years old – I “deserve” a new car. It has 70,000 miles on it and I just decided maybe to look. It’s amazing how much cars seem to cost when you compare it against what your’s is costing you when it’s paid for which is $0. I love your article I recently read along with this one about driving cars well over 100,000 miles. It’s amazing how fast I could easily fall into the car trap again. Thank you for your post – I think I’ll keep driving my 2010 F150.

  • Kyle Nov 16, 2016, 1:54 pm

    Hey M$M,
    I just found your site. Great stuff! I have a question. My wife and I have a 2009 Honda Odyssey. We are making a payment of over $300 a month on it. We can sell it now for more than we owe on it and have about 3 grand left over. From reading this article I take it that you would recommend we stay with this van and pay it off and continue to drive it for as long as we can? Not sell it now and then buy a 3k dollar vehicle for the family?

    • Millennial Money Man Nov 16, 2016, 2:28 pm

      Hey Kyle! At $3,000 you would probably have a hard time finding a vehicle that you felt great about putting your family in. If it was closer to $10,000 I would definitely go that route. You may be better off to just pay it off and drive it for a long time!

      • Kyle Pierpont Nov 17, 2016, 2:47 pm

        Thanks so much for the input! That’s the way I was leaning so thank you for the confirmation. We will just get used to having this van for a long time.

  • Sarah Dec 29, 2016, 10:39 pm

    And I’m sad that I need to buy a new/old car because my oil is leaking, like really leaking! I took it to two shops and they both said it would cost $2,000-5,000 to fix it. I have a 2003 Oldsmobile Alero with 161,000 miles on it worth maybe 1,500. 🙁 . I’m saving up though, come February I will have $5,000 cash to spend on the car plus the trade in of my car. It just means that I’ll be set back that much in my debt snow ball which makes me really sad.

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