When to Get Rid of Your Car

by | Jan 22, 2019 | Personal Finance

Lexi

I thought “Lexi” would be my forever car, but all things must come to an end. Do you know when to get rid of your car?

In 2008 I purchased my first car, a 1999 ES 300 Pearl White Lexus, from a doctor who was a family friend.

“Lexi” was everything I could ever want in a car:

  • One previous owner (Less than 75K miles)
  • It was clean (no scratches or dents)
  • Pretty
  • Chic
  • And paid in full.

I honestly felt so much joy and pride every time I would sit in my car and would eject my sunglasses from the glasses compartment, and in the summertime, open my sunroof to allow Vitamin D to enrich my melanin.

Everything about it was perfect! Until I moved to Dallas…….

Lexi was more like a “show car,” not a commuter car. When I moved to Dallas, I became my own Uber driver.

  • I would drive 45+ minutes to work and back each day
  • Drive about 30 minutes each way to church
  • And let’s not forget visiting family and friends on the other side of the metroplex in my free time.

I added more miles on my car in five years than it accumulated in the 15 years prior to me moving to Dallas.

Unfortunately, I spent thousands upon thousands of dollars to keep her up and running, and it was draining all of my future financial plans.

The reason that I held on to my car for so long was that:

  1. I’m not into updating my car every few years.
  2. I like not having a car note.
  3. It was very sentimental to me.

After paying $3K in repairs in one visit, and then being quoted that it still needed $4,929.54 worth of repairs, I put my emotions aside and made the logical decision to get rid of my car.

I Planned to Buy A New Car But…..

I procrastinated. The best time to buy a car is in December, but I couldn’t part ways in time and ended up selling and buying another car in May, meaning the price of the cars I had on my list had gone up in price.

What I Learned About My Car

  1. Cars are liabilities, not assets.
  2. The value depreciates 20-30% the minute you drive it off the car lot.
  3. My car insurance lady gave me the “wake-up call” when she said it doesn’t matter how much you spend on the car, they will pay out according to what the average car in that year and model is worth.
  4. Never spend more than 30% of the car’s purchase price to keep it running unless I get it for a SUPER discounted price.
  5. After spending thousands of dollars over the years, the highest bid I received for my car was $1200 (One person offered me $200).

Things that I Look For In A Car

  • The Make and Model (some models last better than others)
  • The Year of the Car (newer cars are less problematic and cheaper to repair).
  • Reliable
  • Affordable (inexpensive to pay for maintenance and repairs)
  • Low mileage (Less than 100K)
  • Great on gas (Or Electric)
  • And fits my personality

Is it because of logic or emotion if you are holding on to a car that’s draining your bank account?

Hopefully, you now know the best time to get rid of your car to make an informed decision.

Like this blog? Check out 10 Tips for Buying Your Car

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