In my twenties I wasa car fanatic. I changed cars every year or two because it was fun. I loved negotiating with strangers to try to get the best deal possible. As I got older and richer, my interest in cars waned. Nowadays I think the ideal time to own a car is until the car is about 10 years old.
If you drive a new car for ten years, you have maximized its value while minimizing the safety risks that age brings. I assume an average annual mileage of 12,000. If you don't drive much, you can of course easily extend your car ownership period.
If you buy a used car that is 3 to 5 years old, drive it for 5 to 7 years before looking for a new one. If you buy used, you skip the steepest part of the depreciation curve. You can then turn around and sell the car for a reasonable price.
Forever is not the ideal length to own a car
In the land of the private economy, we always talk about using things for as long as possible. This way we get maximum benefit from the product. Then we can reinvest our savingsmore passive incomeso that one day we can be free.
For example, I have a lot of torn shirts that I still wear to this day. Some friends at my tennis club make fun of me and threaten to report my "dress code violation." But I do not care. I have no one to impress. If the hole in my T-shirt gets bigger, I am in no immediate danger.
But when it comes to cars, owning a car that's over a decade old should no longer be a badge of honor. If you have the money, you should probably look for a new car after ten years for safety reasons.
It makes me want to save money and own a car until the wheels fall off. But if the wheels actually fall off while you're driving, you're screwed!
Around the rain38,000 peopledie in car accidents every year in America. Let us not be a penny wise and a pound foolish. The ideal time to own a car is when it is still safe and in good condition.
Older cars can be more dangerous and less reliable
In college I had an 8 year old 1987 Toyota Corolla FX-16 hatchback with 150,000 miles on it. One day the manual transmission failed completely, leaving me stranded on the side of the road.
Before the transmission broke, I was always afraid the timing belt would break because it looked cracked at the 120k mark. It wasn't until I earned enough money working a summer job that I finally replaced the belt with a new one.
When I was 28 years old, I bought a 1989 BMW 635 CSi classic for $3,500. It was my dream car from when I was in high school. But one day while crossing an intersection to go to Best Buy, my brakes suddenly stopped working! They closed themselves in like stones, without leaving. Luckily I was able to stop without hurting anyone.
Another time the BMW car engine died after I stepped off a bridge ramp. With the rain pouring down, I had to call AAA to start my car.
Two cars ago I drove a Land Rover Discovery II for 10 years until it was 14 years old. There were so many warning lights on the dash that I used black electrical tape to block them.
Although Moose never gave me safety fears, I felt it was timebuy a new car. He failed the smog inspection. It would have cost me more to repair the car than the value of the car itself.
Different perspectives on car safety as a parent
Looking back on my driving days, I have come to realize what the lack of money is likebe too frugalput me at unnecessary risk.
Because my family wasmiddle class and frugalGrowing up, the only car we could buy before I went to college was an $1,800 banker. While at William & Mary, I drove my beater 150 miles round trip from Northern Virginia to Williamsburg several times a year for four years.
As a parent today, I could never let my kids drive an old hatchback with over 120,000 miles on a three-hour commute to college and back. Maybe I'd let them drive a small car as they drove around town. But if they had to commute on the highway regularly, I'd buy them an SUV less than 10 years old or a used Cybertruck.
Recently the 19-year-old daughter of author Michael Lewisdied in a car accident. I can't imagine the pain he and his wife are going through. The other driver, who was driving a truck, escaped with minor injuries.
We would all give any amount to protect our children from harm. And if we have enough money, it is worth spending more money on a vehicle to minimize the risk of death.
Being too frugal when buying a car
Because I wanted to follow mine1/10 rule for car buying, I bought Moose, my old 2000 Land Rover Discovery II, in 2005 for $8,000. I drove it for twelve years until it was worth just $3,000 when I finally traded it in in 2014.
As a personal finance writer, it was almost a game to see how long I could ride the Elk until it fell apart. Part of me wanted to prove to anyone who says no to my 1/10 rule that there is no need to ever buy a new car. If a man could happily drive a car worth far less than 1/10th of his gross income, why can't everyone?
My frugal attitude changed in 2016 when I found out my wife was pregnant. At the time we drove a compact car, a Honda Fit that we called the Rhino. The Rhino cost about $20,000 out the door after I traded in Moose in 2014. For about four months I was worried about riding the Rhino somewhere with my pregnant wife.
Finally, in December 2016, five months before her due date, I opened my wallet and bought a 2015 Range Rover Sport for $58,000, which I still drive to this day. I named him Moosey in memory of his retired older brother.
Other than replacing the cooling fan, the Moosey has given me no problems. I no longer get bullied on the road like I often did with my Honda Fit. I feel more confident when I ride around with three or four other people.
Finally, Moosey was a blast to ride. Owning a Range Rover was also one of my childhood dream cars. In Malaysia, where I grew up in high school, a Range Rover Sport HSE today would cost more than $200,000.
Stop maintenance as an old car owner
There's a chicken-and-egg dilemma when it comes to car ownership and saving money.
People who have owned a car for a long time are generally more economical. But to safely own a car for more than 10 years, regular maintenance is required. And over time, such maintenance usually becomes more expensive. Therefore, we need to find an intersection where the maintenance costs are no longer worth it and sell it in advance.
The extremely frugal car owner will try to do all the maintenance himself. While the riskier, more frugal car owner may tend to put off car maintenance at longer intervals to save money.
It's a bit like wearing disposable lenses for one day for a week to save money. Probably nothing will happen to your eyes. But over time it is not good for your health.
Just as we know that a renter doesn't always 'save and invest the difference', a frugal car owner doesn't always stick to the regular maintenance schedule. When given the opportunity, we are usually not that diligent.
Forced saving is one of the reasons why the average homeowner is so much wealthier than the average renter.
Things in a car tend to wear out or break down over time
Here are some car parts that can fail over time. If you don't replace or maintain the parts, you could be in danger.
- Airbags– Airbags used to have to be replacedevery 10-15 years. Apparently modern technology says this is no longer necessary. But how can you be sure that your airbag will deploy in an accident ten years from now if you don't own a modern car? There was a huge oneTakata airbag recallrecently because it turned out that some of them were not implemented.
- Infect– The modern automatic transmission is a hydraulic system consisting of various seals, gaskets and lines. They can become damaged, clogged with dirt or leak. When this happens, you may experience transmission slippage, which can ultimately end in total transmission failure, as I experienced. After approximately 100,000 miles, the risk of transmission slippage increases. After approximately 200,000 miles, the risk of total transmission failure increases. Hopefully you get enough warning before it fails completely. But you just never know.
- Brakes– Don't take your brakes for granted! Just like any other moving part of your car, the braking system is meant to wear out over time. When they show symptoms of problems, such as squealing, squealing or a soft brake pedal, they should be inspected by a professional mechanic as soon as possible. But sometimes there is an electrical fault that causes the power brakes to fail, as was the case with me.
- Generatorstoring –The alternator is the part of your vehicle that makes all electrical systems run when the car starts. It is also responsible for charging your battery to keep it in top condition. One of the things that surprised me about my Honda Fit was that I was unable to start the car several times due to a faulty alternator. I had to take the car to get it repaired. And even after I had it repaired under warranty, the problem persisted.
- Plate bound- I've had too many flat tires to count. Did you know that it is recommended to walk around and check your tires every time before going for a ride? No one does it regularly. However, it is a good idea to check whether your tires are punctured and whether your tires are properly inflated. I once had a flat tire driving over the Bay Bridge. In general, rotating tires every 8,000 km (or whenever you change the engine oil) is good advice to extend the life of the tires.
- Empty battery– If you have a good alternator, most car batteries last about three years or 80,000 kilometers. A dead battery is usually caused by reduced amperage (or electric current) that naturally decreases as the battery loses its ability to hold a charge. A damaged alternator, battery temperature sensor, or other charging system component can accelerate this problem. It's best to replace your car's battery every 50,000 miles or three years, even if it shows no signs of damage.
- Timing belt or chain– The timing belt or chain controls the camshaft and valves to let fuel and air in and out. If the timing belt or chain breaks, your engine can suffer major damage. Newer vehicles equipped with timing belts can last up to 100,000 miles before needing replacement. Older vehicles, on the other hand, need to be replaced sooner, around 60,000 kilometers. Fortunately, modern cars nowadays usually use timing chains, which last longer.
The list of things that can go wrong with a flammable motor vehicle goes on and on. As you approach the ten-year age limit, your car can pose increasing safety risks unless the previous owner was super diligent about maintaining their car. If you buy a used car, make sure the owner has all the maintenance records.
It's time to focus on car safety
Ofsafest cars and SUVsare usually heavier and have more safety features. Automotive engineers and designers are always trying to make their cars better to keep up with the competition. Otherwise there would never be any progress in car safety. Car manufacturers would keep producing the same old car over and over again.
But just as cell phone technology is growing by leaps and bounds after a decade, so is automotive technology. Here are some of the most popular safety features in cars.
The most popular safety features in today's cars
- Adaptive cruise control (ACC)
- AEB: Automatic emergency braking
- Crash Imminent Braking (CIB)/dynamische remondersteuning (DBS)
- Adaptive headlights
- Warning of a forward collision
- Blind spot detection
- Lane Departure Warning (LDW)/Lane Keeping-systeem (LKS)
- Rear view camera
- Tire Pressure Monitoring System (TPMS)
- Facial recognition software
- Self-driving capabilities
Given all these available technologies, as a rational driver today you would want as many of these safety features as possible in our cars. We know these safety features help save lives.
As someone who values your life and the lives of your passengers, you should probably buy a new car every 8-10 years. year. It makes as much sense asTake out life insurance around the age of 30.
After ten years you will probably be a lot richer too. Therefore, you might as well treat yourself to a new car every 8-10 years. years to enjoy your money more and drive a safer vehicle.
What I plan to do with my car
I plan to own my car until 2025 (10 years old) and then consider purchasing an all-electric SUV. Moosey has only traveled about 40,000 miles today, while we only drive about 5,000 miles per year. By 2025, the safety features and technology of electric cars must be even better.
When it comes time to sell Moosey, it should only have about 46,000 miles. I want all the maintenance records so it will be in good condition. As a result, I should be able to get about $20,000 for him. That equates to an energy cost of $3,900 per year. Not bad.
By the time my kids are allowed to drive, I'm not sure I'll let them. I hope that in more than twelve years there will be reliable self-driving technology. In that case, inexperienced teens who constantly check their phones while driving could be put on hold.Distracted driving is an epidemic!
As a driver with 25 years of experience, I am constantly getting close along the way. I doubt young adults with less experience will do as well. Instead, I prefer an experienced Uber driver to drive my kids around until they have at least 100 hours of supervised training. Driving is too important a responsibility to take lightly.
The ideal number of years to own a car is when you no longer feel the car is safe. Safety is priceless!
Related car posts
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Tax rules for deducting an SUV or truck for your business
Enjoy your forever home for now, it will probably change
Options to get out of a car lease
Repair or plug a tire?
Readers, what do you think is the ideal time to own a car? How long have you owned your existing car? And how old is your existing car? If you are looking for a car, what type of car are you looking at?
For more nuanced personal finance content, join 60,000 others and sign upfree Financial Samurai newsletter. I have been writing about personal finance since 2009.
