2823: 7 Reasons Why I Drive a 17 Year Old Car by Jen Hayes on Financial Habits for Building Wealth

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[00:01:06] [SPEAKER_00]: This is Optimal Finance Daily.

[00:01:09] [SPEAKER_00]: 7 Reasons Why Drive a 17-Year-Old Car by Jen Hayes of jenhayes.me.

[00:01:16] [SPEAKER_00]: And I'm your host and personal finance enthusiast, Diana Merriam.

[00:01:19] [SPEAKER_00]: Now let's get right to it as we optimize your life.

[00:01:27] [SPEAKER_00]: 7 Reasons Why I Drive a 17-Year-Old Car by Jen Hayes of jenhayes.me.

[00:01:35] [SPEAKER_00]: My car is ugly.

[00:01:37] [SPEAKER_00]: It's rusty, it has plenty of scratches and a few dents, and it's 17 years old.

[00:01:42] [SPEAKER_00]: It's not pretty or shiny.

[00:01:44] [SPEAKER_00]: The heat in AC is out half the time, and it's usually making some sort of bizarre noise.

[00:01:51] [SPEAKER_00]: It's what most people would consider embarrassing.

[00:01:55] [SPEAKER_00]: Some people think I'm crazy for continuing to drive this vehicle.

[00:01:59] [SPEAKER_00]: But here are 7 reasons why I do it.

[00:02:02] [SPEAKER_00]: 1. It's Cheap

[00:02:04] [SPEAKER_00]: The main reason I drive a 17-year-old car is because it's cheap.

[00:02:09] [SPEAKER_00]: The tabs are less than $50.

[00:02:12] [SPEAKER_00]: My car insurance is $50 a month, and the parts for repairs are inexpensive as well.

[00:02:18] [SPEAKER_00]: If I bought a newer vehicle, it isn't just the car payment I'd have to worry about.

[00:02:23] [SPEAKER_00]: My monthly insurance and annual tabs would also increase quite a bit.

[00:02:29] [SPEAKER_00]: 2. It runs

[00:02:31] [SPEAKER_00]: I'm not a car person.

[00:02:33] [SPEAKER_00]: To me, the only purpose of a car is to get me from point A to point B,

[00:02:38] [SPEAKER_00]: which my car does just fine for the most part.

[00:02:42] [SPEAKER_00]: Maybe someday when I'm 100% debt-free, I'll drive something shiny and pretty, paid for in cash.

[00:02:48] [SPEAKER_00]: But for now, my only requirement for a car is that it runs.

[00:02:53] [SPEAKER_00]: 3. Cars are not an investment

[00:02:57] [SPEAKER_00]: Cars are not investments.

[00:02:59] [SPEAKER_00]: A new car loses a huge portion of its value the second it's driven off the lot.

[00:03:04] [SPEAKER_00]: It doesn't make sense to take out a loan for a depreciating asset.

[00:03:09] [SPEAKER_00]: 4. It's Less Stressful

[00:03:12] [SPEAKER_00]: Okay, in some ways, it is stressful to drive an old car.

[00:03:16] [SPEAKER_00]: It occasionally needs expensive repairs, and that's not fun.

[00:03:19] [SPEAKER_00]: But it's way less stressful in other ways.

[00:03:23] [SPEAKER_00]: I don't worry that someone is going to steal my car when I let my car warm up during the winter.

[00:03:28] [SPEAKER_00]: If another car is parked too close to me, I really couldn't care less if they door-ding me.

[00:03:34] [SPEAKER_00]: When my hubby's out covering his smart car with yoga mats, yes, he really does that,

[00:03:40] [SPEAKER_00]: to prepare for a possible hailstorm, I don't even bother trying to cover my car.

[00:03:45] [SPEAKER_00]: Truthfully, I don't care if my car gets dirty or a little damaged.

[00:03:49] [SPEAKER_00]: I don't need to keep it looking spiffy, because it looks kind of terrible already.

[00:03:55] [SPEAKER_00]: 5. It keeps me humble

[00:03:58] [SPEAKER_00]: My rusty, dented, and scratched car keeps me humble and reminds me of our goal.

[00:04:05] [SPEAKER_00]: I don't want to keep up with the Joneses anymore.

[00:04:07] [SPEAKER_00]: I don't care what other people think.

[00:04:10] [SPEAKER_00]: My car might be embarrassing to some,

[00:04:12] [SPEAKER_00]: but this old car is part of the reason why we'll be debt-free someday.

[00:04:17] [SPEAKER_00]: Financial freedom is more important than a shiny car.

[00:04:21] [SPEAKER_00]: 6. I ain't got a car note

[00:04:25] [SPEAKER_00]: This is the most important reason why I drive a 17-year-old car.

[00:04:29] [SPEAKER_00]: To quote rapper D. Young,

[00:04:32] [SPEAKER_00]: I ain't got a car note.

[00:04:33] [SPEAKER_00]: I love not having to make a car payment every month.

[00:04:37] [SPEAKER_00]: Driving an old car has its drawbacks, but it's well worth it.

[00:04:41] [SPEAKER_00]: 7. Repairs are cheaper

[00:04:45] [SPEAKER_00]: Due to its age, my car occasionally needs expensive repairs.

[00:04:49] [SPEAKER_00]: Some people have tried to use this as a reason to convince me to buy a new car, with a loan.

[00:04:55] [SPEAKER_00]: This logic doesn't make sense.

[00:04:57] [SPEAKER_00]: Yes, having to drop $500 on repairs here and there isn't ideal,

[00:05:02] [SPEAKER_00]: But that's a lot better than spending $200 plus every month on a car payment.

[00:05:08] [SPEAKER_00]: My car insurance and tabs would also drastically increase if I purchased a newer vehicle.

[00:05:15] [SPEAKER_00]: Live like no one else now, so you can live like no one else later.

[00:05:21] [SPEAKER_00]: As Dave Ramsey says, quote,

[00:05:23] [SPEAKER_00]: Live like no one else now, so you can live like no one else later.

[00:05:27] [SPEAKER_00]: End quote.

[00:05:28] [SPEAKER_00]: A 17-year-old vehicle may be ugly and embarrassing,

[00:05:33] [SPEAKER_00]: but avoiding car loans is an important part of our journey to debt freedom.

[00:05:37] [SPEAKER_00]: When you find yourself in a hole, the first step to getting out is to stop digging.

[00:05:44] [SPEAKER_00]: My hubby and I are avoiding debt as much as possible while we pay off our student loans.

[00:05:50] [SPEAKER_00]: Someday, we'll have a paid-off mortgage and we'll be 100% debt-free.

[00:05:55] [SPEAKER_00]: We won't be chained down by payments.

[00:05:57] [SPEAKER_00]: We'll be able to travel, splurge on things we love, give generously, and or retire early.

[00:06:04] [SPEAKER_00]: We'll be able to buy fancy cars with cash if we want to.

[00:06:08] [SPEAKER_00]: I probably won't, but the hubby might.

[00:06:11] [SPEAKER_00]: Achieving financial peace is more important than impressing others or keeping up with the Joneses.

[00:06:16] [SPEAKER_00]: Who cares what the Joneses think anyway?

[00:06:24] [SPEAKER_00]: You just listened to the post titled,

[00:06:26] [SPEAKER_00]: 7 Reasons Why I Drive a 17-Year-Old Car by Jen Hayes of jenhayes.me.

[00:06:32] [SPEAKER_00]: And I'll be right back with my commentary.

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[00:07:38] [SPEAKER_00]: This article reminded me of an exchange I had with an Uber driver once.

[00:07:43] [SPEAKER_00]: He was telling me that his business tanked due to the pandemic, and that's why he was

[00:07:47] [SPEAKER_00]: driving for Uber.

[00:07:48] [SPEAKER_00]: But he was also stressing about buying a new car and qualifying for a loan, which confused

[00:07:54] [SPEAKER_00]: me because the car we were in was really nice.

[00:07:57] [SPEAKER_00]: When I told him that I drive a 2010 Mazda 3, he was completely horrified.

[00:08:03] [SPEAKER_00]: He said he could never imagine being seen driving such a dumpy car.

[00:08:08] [SPEAKER_00]: Just like I could never imagine spending a lot of money on a depreciating asset.

[00:08:13] [SPEAKER_00]: I could tell how much this desire for a new car stressed him out.

[00:08:17] [SPEAKER_00]: And I really felt for the guy because it seemed that his sense of self-worth was so tied up

[00:08:22] [SPEAKER_00]: in appearances.

[00:08:24] [SPEAKER_00]: Through our conversation, it became clear that the gratification of a new car and what he

[00:08:29] [SPEAKER_00]: thought that said about him mattered more to him than relieving some of his financial

[00:08:34] [SPEAKER_00]: stress.

[00:08:35] [SPEAKER_00]: I think this is pretty much the norm in our consumerist culture, and a big reason why so

[00:08:40] [SPEAKER_00]: many people feel that debt is a normal part of life.

[00:08:44] [SPEAKER_00]: But that's a wrap for another Thursday show.

[00:08:47] [SPEAKER_00]: Have a great rest of your day, and I'll be back tomorrow where your optimal life awaits.