During televised sporting events and prime time television ads try to get me to buy a new car or truck. The ads promote safety, fuel economy, special financing, how “green” the car is, and how their vehicle is a status symbol. I bought my patriot blue 2000 Plymouth Neon new in Fort Collins, Colorado in February 2000. This car has safely taken me to Minnesota twice, Texas, California, North Carolina, and Montana, as well as to and from work. The seats are comfortable and I can drive for hours. My Neon is twelve years old and pushing 100,000 miles. At this point many people would look at buying a new car.
Before buying a new car I would have to look at several factors. I would have to pay taxes and get new license plates. What kind of gas mileage would my new car get? I would now have monthly car payments. When I compare my 2000 Plymouth Neon with a new car I have five reasons why I will stay with my older car.
Cheaper License Plates – New cars have taxes to pay and new license plates to get. New car plates can cost a driver in Colorado several hundred dollars, depending on the value of the new car. After a car is ten years old license plate renewal costs drop to under one hundred dollars. By staying with my 2000 Plymouth Neon, I save hundreds of dollars a year on license plates. In this economy, every dollar counts.
Less Expensive Insurance – New cars, especially ones that are financed, have to carry more insurance. More insurance means more money. My insurance rates are lower because my car is older and less valuable. So, again, I save money yearly by driving my old Neon.
Gas Mileage – New compact cars and hybrids advertise their miles per gallon. Yet on a recent 300 mile highway trip my twelve tear old Neon got 38.83 miles per gallon. On some legs of long trips I have recorded MPG in the low 40s. This compares well with new cars and even some hybrids. Even with city driving I get gas mileage in the high 20s or low 30s. Better gas mileage is not an incentive to spend thousands of dollars on buying a new car.
Repairs are Cheaper than Payments – My car is older and I have had to have a few repairs done. This does not include the regular maintenance even new cars need such as oil changes, new tires, and tune ups. I keep up on maintenance so repairs are few. Even with the occasional repair, it is still less expensive than having a regular monthly car payment. My Neon recently had a repair on its suspension due to road construction. The repairs, the first in almost two years, cost me the equivalent of what would be two and a half months of new car payments. With proper maintenance and normal driving; repairs are cheaper than car payments.
What Cars are for – My 2000 Plymouth Neon is not a status symbol by any means or definition. What my car does is get me from point A to point B reliably and safely. A new car could certainly do the same thing. But what good is buying a new car status symbol if it cannot do anything else because it gets horrible gas mileage or I am afraid it will be stolen. The Neon does what it is supposed to do and does it well.
When I compare buying a new car to my well-used 2000 Plymouth Neon, I will stay with my Neon for a bit longer. Right now it is in my financial interest to stay with a lower insurance cost, cheaper license plated, and excellent gas mileage older car. That is, until my Neon can no longer safely and reliably get me to my destination.