Well folks, after 60 agonizing days of dealing with car salespeople, test-driving far too many vehicles, visiting two auto mechanics to diagnose and fix my current car, and wasting an unhealthy amount of time on online research, I have decided not to buy a new car.
I know this may disappoint everyone who generously shared advice and recommendations. Believe me, I listened. At the top of my list were the Lexus GX 550, Toyota Land Cruiser, Toyota Highlander, Rivian R1S and R2, Range Rover Sport, and Tesla Model Y Performance with FSD.
I am sure I would enjoy every one of these vehicles, all conveniently priced between $50,000 and $115,000 out the door. That is also precisely the problem.
A Silver Lining After Returning From Hawaii
Despite returning from 10 days in Honolulu to a completely dead battery, two roadside assistance calls, and two system shutdowns while driving, I am still keeping my car.
In a twist of fate, the January 1, 2026 rain-soaked car fiasco turned out to be a blessing in disguise.
The full battery discharge while I was away appears to have reset the rogue modules causing a parasitic drain. Before I left for my trip, the Low Battery Warning showed up 13 out of 15 cold starts, despite replacing the battery and driving for at least 45 minutes the day before. Since returning, the car has behaved flawlessly. No Low Battery Warning. No ominous “System Will Shut Down in One Minute” message. Twenty clean days and counting.
With the issue seemingly resolved, I am sticking with my 10-year-old car for at least another year, but hopefully three and a half more years. It has just 67,500 miles on it, and I drive only about 6,300 miles a year.
So yes, despite recent mechanical drama, a roaring bull market since 2023, and a recent article on decumulating wealth, I am passing on a new car. I can’t bear to give it up after spending all this time and money fixing it. Sunk cost fallacy perhaps? But after finally winning a two-month battle, it’s time to enjoy the spoils!
Below are the main reasons why I am unwilling to light tens of thousands of dollars on fire just to enjoy that new-car smell.
Reason #1: I’m Becoming an Old Dog Who Doesn’t Want To Learn Tricks
With a new car, I’d have to learn a whole new interface – how it drives, how the touchscreen works, how to turn on the A/C, and so on. Eventually I’d figure it out, sure. But I’m also the guy who didn’t realize until year five of ownership that my current car has a button to automatically open the trunk and another button to heat the steering wheel. What luxury!
I’m officially turning into my father when it comes to technology. He refuses to upgrade his 1998 Toyota Avalon and I don’t want to upgrade my 2015 Range Rover Sport that still has nice-smelling leather seats. It also has Bluetooth, parking sensors, a backup camera, all-wheel-drive, 22” rims, and everything I could ask for.
Reason #2: I Don’t Want the Stress of Driving a Pricey New Car
Spending $60,000 for a Tesla Model Y Performance or $115,000 for a new Range Rover Sport would make me constantly stressed about dings, scratches, and keeping the thing pristine. It’s like wearing a brand-new pair of white sneakers, multiplied by 1,000.
Right now, I can park my 10-year-old car anywhere without a second thought. If it gets dinged or bumped, I shrug. But if a new car gets keyed in a supermarket lot? I’d be pissed. And my happiness is worth way more than that. I’ve been in my car three times when the neighbor opening their door dinged mine and they couldn’t give two farts. I no longer want to fight these nuances any more.
As dual unemployed parents (DUPS), I already feel pressure to provide. The last thing I need is new-car-stress layered on top of everything else. In fact, the biggest benefit of driving an old car is better mental health! New cars also come with higher insurance rates, which drags down our cash flow.
The Main Reason: Opportunity Cost Of Not Investing Is Too Great
Being comfortable with my old car is nice. Avoiding stress is even nicer. But the number one reason I didn’t replace it is this: Buying a new car now would sabotage a major financial goal.
I’m currently about $20,000 a year in passive income short of my ideal financial independence target. At a 4% withdrawal rate, that means I need at least $500,000 more in invested capital.
Ever since I bought my house on a large lot in 2023, I’ve been working to earn more, save more, and invest better to replace the $150,000 in passive income I lost. I’ve made great progress, in part thanks to a bull market in stocks. Further, two tenant turnovers in 2025 enabled me to reset rents to market rates and meaningfully increase rental income.
So to spend $50,000–$115,000 on a depreciating asset feels like an unforced error. I know the amazing feeling of having 100% of your desired living expenses covered by passive income. That feeling lasted from 2012, when I left work, until 2023. I desperately want to return to that situation.
If I grind for another 1–2 years and the market cooperates, I should reach my passive income goal of $380,000 a year no problem. But slicing off $50k – $115k of capital today would cost me at least: $2,000–$4,600/year in lost passive income, forever.
That puts even more pressure on the stock market to do the heavy lifting, which I’m not bullish on due to valuations. Managing my family’s finances already feels like a full-time job sometimes with 10 investment accounts. I don’t want to drag this out any longer than necessary because I’m already tired.
The Even Bigger Opportunity Cost: My Kids’ Finances
It’s hard enough to justify buying a car I don’t absolutely need when I’m trying to hit a big financial goal. This is why I rolled the dice and spent $1,750 to fix the car from cash flow. But when I think about my kids’ future, it becomes almost impossible to splurge.
At ages 6 and 8, they have the longest time horizon of all, and therefore the highest compounding potential. Every dollar invested for them today is dramatically more valuable than a dollar invested for me.
And let’s be clear: they’re technically poor. They have no great skills, no jobs, and no ability to generate income, yet they’ll be entering a labor market disrupted by AI. They may very well be underemployed after college and still living at home with us.
The main way I’m hedging is by investing heavily in AI on their behalf.
I’ve already funded a new $200,000 Fundrise Venture account earmarked for them in August 2025. Ideally, I’d like to double the funding, so it has a greater chance to grow into millions by the time they graduate as an insurance policy. Of course I’m not going to tell them they have this insurance policy out of fear of spoiling them.
In addition, I believe there’s going to be a 10 percent pullback in the stock market this year. If and when it happens, I want to invest as much as possible for my children’s custodial investment accounts. The current gift limit per person is $19,000 or $38,000 if a couple, and we have two children.
This Is Where the Math Gets Serious
If I invest the money I would have spent on a new car instead:
Scenario 1:
Invest $50,000 (Tesla Model Y non-performance model money) for my daughter for 13 years at 8%: -> $50,000 -> ~$136,000. I think she would appreciate $136,000 extra in her custodial investment account after college to launch than sitting in a new Tesla starting from age 6. She’s perfectly happy kicking the back of my car’s front seats as is.
Scenario 2:
Invest $115,000 (Range Rover Sport money) for 10 years at 8%: -> $115,000 -> $248,000. I think he would appreciate having $248,000 to pursue his career dreams, instead of just go into an industry society considers prestigious.
That’s life-changing money for a kid starting adulthood. It’s not life-changing for me to be driving a nicer vehicle to the supermarket, school, or Lake Tahoe. Honestly, I just want a reliable car that gets me from point A to point B safely.
An 8% rate of return is reasonable. However, if we experience strong runs like we’ve seen since 2023, the absolute dollar gains over 10 years will be even greater. The Innovation fund, for example, returned 43.5% in 2025. The momentum seems there for another great year, although, no guarantees of course.
Once I saw the numbers, it became obvious: It’s better to invest for their future than drive a new car that I don’t absolutely need.
So instead of selling Treasuries to buy a depreciating asset, I’m rolling expiring Treasuries into traditional venture capital funds investing in AI, plus an open-ended venture fund. I’m also using the money to buy any significant dip of 3% or greater in the stock market.
I’m in the camp that the bigger risk isn’t the AI bubble popping, it’s missing out on a generational life-changing opportunity near the beginning.
Paying for Repairs Through Cash Flow
So there you have it. The personal finance nerd in me just can’t justify splurging on a new car. I honestly feel stupid doing so when I simply don’t value new cars anymore. More than anything else, I value freedom and ensuring our children will be OK
I hope to survive the next year with minimal car problems. If I can just spend just $1,000 – $2,000 a year fixing the car in the future outside of tires, brakes, and oil changes, I will consider it a win. Perhaps if I ever get some type of huge windfall, I’ll buy a new car.
But today is the day to continue investing for a brighter future. In the meantime, I’m just going to wash and vacuum my car to make it feel new once more. And you know what? Washing the car worked! Check out the picture below. I feel like I’m driving a new car for free once more.
How do you overcome the guilt of spending on a depreciating asset when you know that money could compound into far more for you and your children in the future? If you’ve found ways to tap principal for a major purchase, rather than relying on cash flow alone, I’d love to hear your strategies.
Suggestions For A More Secure Life
If you care about car safety, you should also care about protecting your family in case something happens to you. Consider an affordable term life insurance policy through Policygenius. My wife and I got matching 20-year term policies at a great rate during the pandemic to protect our two young children, and the peace of mind we feel is priceless.
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