New Car Or Old Reliable? Suze Orman's Surprising Advice On Listener's 20-Year-Old Car

For many, a car is more than just a way to get from point A to point B – it can carry emotional value and memories. This was evident in a recent Women & Money podcast episode, where a listener named Ruth sought advice from Suze Orman about her 20-year-old car. 

Ruth's question: "Should I get over my nostalgia or should I drive the Saturn into the ground?" 

Don't Miss:

• The number of ‘401(k)' Millionaires is up 43% from last year — Here are three ways to join the club.
• Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.
• CD Popularity Soars: Over 50 Million Americans Embrace Safe Savings with 5–10% Annual Growth

Ruth explained that she inherited the car from her parents and has driven it ever since. Although the car isn’t flashy, it runs well, thanks to regular maintenance. Ruth also mentioned that she had saved enough to purchase a new car, albeit a modest one. However, she has been hesitant to sell due to the sentimental value of the vehicle.

Before addressing Ruth's situation, KT shared that their car is over a decade old and has been maintained well through consistent maintenance. This experience informed their perspective: keeping a well-maintained vehicle can be cost-effective and practical.

KT jokingly admitted that they would consider selling their car if the price was right when Orman recalled when someone offered to buy it on the spot. Orman, however, values the nostalgia tied to their car and is adamant about keeping it until it no longer runs.

Trending: The average American couple has saved this much money for retirement — How do you compare?

Regarding Ruth's question, Orman emphasized the financial and emotional aspects of her decision. Since Ruth has the funds to buy a new car, Orman acknowledged that as an option, but she pointed out a few factors to consider:

• Higher Costs with a New Car: A new car often comes with increased expenses, including higher insurance premiums and ongoing maintenance. While a newer vehicle may provide peace of mind, owning it's not necessarily cheaper in the long run.
• The Value of Savings: Orman encouraged Ruth to let her savings grow. If that money earns 4.5% to 5% interest in a secure account, it could continue working for her financially while she drives her current car.
• Sentimental Attachment: Orman acknowledged Ruth’s emotional connection to her car, saying, "Your heart is in it." Ruth herself understands the sentimental pull of keeping a beloved vehicle.

See Also: Studies show 50% of consumers think Financial Advisors cost much more than they do — to debunk this, this company provides matching for free and a complimentary first call with the matched advisor.

Orman emphasizes the importance of balancing practicality with personal preference. If a car runs well and is properly maintained, there's often no rush to replace it, even if it's older. Nostalgia and financial considerations can go hand in hand – especially when savings can be leveraged to earn more over time.

This isn't the first time Orman has suggested keeping a car for the long haul. Part of her financial philosophy is to take care of your vehicle and keep it as long as possible versus other, more expensive options, like leasing a car every few years. 

For those in a similar position as Ruth, Orman's guidance suggests evaluating the true cost of a new car versus the benefits of sticking with an older, dependable one. Sometimes, the best financial move is simply to hold on to "old reliable."

Whether you're sentimentally attached to your car or ready to change, weigh your options carefully and consider your financial goals.

Read Next:

• Many are using this retirement income calculator to check if they’re on pace — here’s a breakdown on how on what’s behind this formula.
• Trending: Invest in $20+ trillion home equity market today across cities like Austin, Miami, and Los Angeles through a unique 5-year term fund targeting a 14-20% IRR with minimums as low as $2,500