New Cars are shiny, gleaming, loaded with the latest technology and features. New cars get the big commercials on TV, where they swerve confidently in snow storms, zoom down idyllic country lanes, and maybe even dance a little to the sound of a state-of-the-art in-car sound system near a trendy night club.
Definitely an Old Car
Old Cars get none of that attention. Old cars are relegated to radio spots and newspaper ads. Old Cars have dents and dings, faded seats and cassette players.
But as a proud owner of a (what most people would consider to be) very old car, I have to say, it’s time to show some love to the Old Car. I drive a mid-1990s Honda with – get this – 223,000+ miles on it. And yes, it only has a cassette player.
But despite because of a car’s advanced age and mileage, here are all four reasons why Old Cars are the unsung heroes of personal finance. If you love Old Cars, Old Cars will love you (and your wallet) back:
1. An Old Car is most likely to paid off. Which means… no car payment, which means… more money in your pocket. Of course, repairs can cost higher than a new car’s, but in many cases the math still works out in the Old Car’s favor. Even with periodic repairs to the tune of $1,000-$1,500 a year, my Old Car is still cheaper than a New Car would be.
2. Cheaper insurance. Old Cars are cheaper to insure (and you might not need comprehensive or collision insurance for an old car). Added up over the course of 5 years, you can save hundreds or thousands of dollars on insurance if you drive an Old Car instead of a New Car.
3. Less worry of damages. A bump on an 1997 Toyota Camry adds character (or so I’d like to believe), a scratch on a 2009 BMW 335i is a glaring blemish. I have little scratches on my car that I don’t worry about fixing. I don’t want my car to be scratched, of course, but if it happens it won’t break my heart. If I were driving a brand-new car, however, that would be a different story.
4. At this point, it’s become something of a “let’s see how many miles I can put on this car” game. I had one mechanic tell me he has a Honda that topped 400,000 miles. While I don’t know if my car can get that far, I’m hopeful that my car have a few more years in it.
