One of my clients recently had an auto repair quote for $7,100 on his 1992 Toyota pickup.
The truck has 272K miles. The body of the vehicle is in good shape – for its age.
What would you do? Keep it? Or send it to the graveyard?
Joe Pinsker at The Wall Street Journal (1) wrote an article about keeping your car till the
wheels fall off. “There have always been people who relish driving a car till the wheels fall
off.” “The case for this frugal personal-finance move has grown stronger.”
Here’s the economics: (2)
- The average cost of a new vehicle was $46,660 in March, up from $39,500 three years ago.
- Newer models have become more expensive to repair.
- Meanwhile cars last much longer than 100K miles.
- 44% of cars on the road are now 10 years or older.
In the WSJ article, the owner of a 24-year-old Toyota Tacoma (1) says that keeping his car
for 300K miles was the best financial decision of his life, saving him an estimated $100K!
Are you ever curious about the true cost of a new car? What are the total costs after you
consider: interest on the loan, taxes, fees, higher insurance, depreciation, fuel,
maintenance and repairs?
Edmunds has a calculator to help you get a feel for the cost of owning a new car. This is a
cool exercise! Just for fun, look up your dream car at Edmunds.
Going back to the original question, my client ended up keeping his car. After paying the
$7100 repair bill, he is happy to predict that he will drive the car – daily – for another 10
years. If the WSJ article is true, then his 32-year-old car has done well by him, and he
should be enjoying a 6-digit bump to his finances as well. What’s not to love?
Stay the course,
Barbara
- https://www.wsj.com/personal-finance/the-new-math-of-driving-your-car-till-the-
wheels-fall-off-9c23b7bc - https://www.edmunds.com/new-cars/
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