"Affordability" and a new car

[Koolau]

Well, I don't think I ever thought about it in terms of percentage of NW or WR. Also, I not a car-gal, and have driven some amazingly run down vehicles (formerly known as bombs) back-in-the-days-of-next-to-no-money. I have always paid cash. My general guidelines are:

- pay cash;
- have liquid cash available in case there is an urgent need to purchase a vehicle;
- look for something safe and reliable.


Words to live by. Of course we all have different car "tastes." One of the advantages of having a bit of extra money in the stash is to buy what we want during FIRE. Personally, I want reliability more than any other feature but YMMV.


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[Out of Steam]

At age 66, I am looking less at "affordability" and more at "this could be the last car purchase I ever make", as I tend to hold onto cars as long as I can.

I'm just slightly younger than you, and figured that my recent purchase is probably my second-to-last car buy.

 

[GrayHare]

Before getting a new vehicle, I usually wait until Dave's 1972 Chevy Impalas!!! The World's Most Famous 72 Impalas! Arizona Car Shows!

 

[Koolau]

Before getting a new vehicle, I usually wait until Dave's 1972 Chevy Impalas!!! The World's Most Famous 72 Impalas! Arizona Car Shows!

Now that's a fun site. Thanks for sharing.

 

[jekbrown]

I just want reliable transportation and a long warranty so I don't have to deal with unexpected major expenses. Currently have a 2012 Kia Soul. Thanks to some recalls the warranty is good to 150k miles and I'm at 120k now. We plan on buying another Kia when we get a year or two from retirement. It'll be nice to not have to worry about getting a car until again until we're social security age. I could easily afford a much "cooler" car, but since cheap transportation is all I want it for I don't see the point in that kind of investment. If a rich Uncle died and left me millions, sure, I'd buy that Ariel Atom, but I doubt that's going to happen.

 

[Tom52]

Before getting a new vehicle, I usually wait until Dave's 1972 Chevy Impalas!!! The World's Most Famous 72 Impalas! Arizona Car Shows!

Doesn't appear there is anything updated on that website since 2013. You might be waiting a long time.

 

[grasshopper]

I bought my last new Hyundai Santa Fe at age 70. Thinking my warranty and the 10 year on the Santa Fe warranty would run out about the same time. Ms G is more than happy to drive her 2009 GMC 4WD Sierra, only 15 y o with 150K. She does wish that I would wash it sometime.

 

[Badger]

I bought a new 2020 Santa Fe four years ago at 71. We just returned from a trip to NC and the milage is now at 18,500. We have only taken a few other shorter trips so the majority of miles is around town. At this rate in 10 more years it should only have about 60k miles. As long as it holds up mechanically (it has the 100k drive train warranty) and doesn't rust out and if nothing happens to my health or mental abilities I would only buy another car if it could be programmed to drive to a destination.

 

[yakers]

DW is 76 and starting macular degeneration, sure she can drive for a few years, we didn't need to replace our 2nd car but she wanted a new car, I would have bought her a Tesla (or any car she wanted, like a MB we looked at) but she wanted a Bolt and is overjoyed with it, putting on @ 5K mi a year. Not a good financial decision but we can afford it so why shouldn't she have the car she wants and brings her joy. May be the last car we buy.

 

[Surewhitey]

We're on the frugal side for cars, but Toyota have been the most reliable we've ever owned. Currently we have a 2018 Avalon and 2012 Sienna. Both were 2-3 years old when we bought them and paid $18k for each. Lots of similar parts so easy to work on.

Now we look at insurance and how little we drive (less than 5k miles each annually for the past few years. Insurance is upward of $2k annually for liability on the van and full on the car. The van is the most utility vehicle I've ever owned. Doubles for a truck & 2 person rv in a pinch. Both are ~1.5% of NW.

 

[Teacher Terry]

I have had a few new cars but mostly buy certified used from a dealer that are 2-4 years old. Although my friend just bought a new car because the used one with 60k miles was only 3k cheaper.

By far the best car is my 16 year old Toyota Corolla that has 71k miles and has never had a repair except for brakes. My friend drives a 32 year old Camry that she bought new.

 

[check6]

At 75 recently purchased my second new car ever, 2023 MB GLC, the first being a 1984 Corvette. Between them I drove used Toyota pickups. We are really big on interiors and as much as we wanted an Audi Q5, Mercedes beat everyone when it came to an upscale interior.

<-----And yes, at 75 am still flying an acrobatic airplane.

 

[Joseph]

My limit is around 50k before tax
Looking at a Tesla Y for wife because we qualify for $7500 tax credit, Electricity is cheaper than gas and maintenance “ should be” minimal over 10 yrs
Only downside is resale won’t be as good

 

[aja8888]

My limit is around 50k before tax
Looking at a Tesla Y for wife because we qualify for $7500 tax credit, Electricity is cheaper than gas and maintenance “ should be” minimal over 10 yrs
Only downside is resale won’t be as good

Ir you keep it 10+ years, resale won't matter that much.

 

[Koolau]

The last 3 cars I've replaced (over 17 years) have been because a needed repair would cost more than the car was worth. My Buick is 24 years old and it's one transmission repair or struts replacement from being scrapped. Keeping my fingers crossed that it goes another 10 years without big repairs leading to it's "early" demise.

 

[brett]

The last 3 cars I've replaced (over 17 years) have been because a needed repair would cost more than the car was worth. My Buick is 24 years old and it's one transmission repair or struts replacement from being scrapped. Keeping my fingers crossed that it goes another 10 years without big repairs leading to it's "early" demise.

Ditto. I expect to keep our 2006 Accord for a few more years. Runs like new and we still enjoy driving it.

 

[Dtail]

Hanging on to my 2010 BMW Z4 which started having lots of issues at 90k mileage. So I ditched the comprehensive, collision and towing and restricting the driving to 3 to 5k a year non highway.
Still need a 3rd car for the 3 of us and have had a sports car my whole life so not ready to get rid of it or spend the type of dough to get the kind of new sports car we would like.

 

[Dash man]

I have a 2021 BMW 540 that I love. Never have had a problem with it. I bought it during Covid just before all the shortages started hitting car dealerships. I special ordered and it made it here on time.
Trying to talk DW into getting one.

 

[ArmchairMillionaire]

For those of you who have been retired for a while and are financially comfortable, how did you approach the question of budget? Percentage of NW? Percentage of taxable? Just spent whatever?

Thanks!

Not retired yet (soon!) but we were at a point last year where we wanted to buy our "retirement road-trip" vehicle. We didn't need it yet, but wanted to hedge against the rapidly escalating prices, so we saved up and ordered a 2024 Trax. The stealership wanted 7+% interest so we just bought it outright.
So we spent what we could afford to just buy outright.
YMMV.