What kind of car do you drive? Did you buy it for gas mileage? Looks? Latest technology? We have an SUV because my wife likes SUVs. I also have a leaf because I like trying cutting edge technology and think the idea of electric cars is awesome (Stay tuned for my Leaf review in the next few weeks). When buying a car, rational people should look to longevity and usefulness of the vehicle. If you purchase a car that will last you 15 years, you’ll be in good shape.
There’s the chart. I promise I don’t work for Toyota or Honda. Apparently, those cars are made better than most on average. Several of those cars are the first generation for their model (Highlander, Sienna, and Tundras). Figure out how much you pay per year on expenses and upkeep. Then add up your car cost totals over the life of your car. If you can go a decade without making car payments, how much would you save? Let’s say you throw those savings in a Vanguard or Betterment account.
Take Vanguard Total Index Fund (VTI). If you stuck $10,000 in VTI ten years ago, you would have around $25,000 today. Buy a rational car today and save the excess you would’ve spent on the latest and greatest car in a good fund account. When this car finally gives up the ghost, you can use your earnings to purchase another car down the road. After twenty years, you’ll probably have enough to purchase your cars for life.
Stay rational
-B&T