With Exorbitant Car Prices, I’ll Never Have That New Car Excitement Again - We’ll Keep Driving Our 2015 Subaru Forester

Rather than buy new cars, Richard drives older vehicles. His wife drives an older Subaru Forester, and he recently purchased a 12-year-old Mini Cooper. Here is Richard's story that many readers can identify with.

If you can't afford a new car, you aren't alone. 

This is the story of a man and his wife who, like many others, are not in a position to buy a new car due to its exorbitant cost. According to Experian, the average price of a new car is a staggering $48,000, which is out of reach for many.

If you get a car loan for 72 months, the average new-car payment is $730, according to Bankrate, and the average auto insurance policy is $2,543 per year, which has increased 26% from 2023.

Many Americans can't afford a new car or are choosing to drive an older one. 

Here is Richard Truett's story.  

"Like many Americans, my wife and I consider ourselves priced out of the new-car market. If we bought a new car based on the above numbers, the monthly payment, including insurance, would be roughly equal to having another mortgage payment. We won't go there," says Richard. 

"The excitement of driving a new car home from the dealer has been one of life's pleasures for me. But I'm not sure I'll ever again have that experience."

"My wife has been driving a low-mileage 2015 Subaru Forester she bought from a work colleague for $15,000 cash. Again, no car payments." 

I can relate to Richard's story. My wife and I own a 2019 Subaru Crosstrek with 60,000 miles, which is paid off. We recently sold a 2014 Subaru Outback, and I'm looking for another well-maintained, low-mileage model. 

While Richard could technically afford a new car, it would come at the expense of his 401k retirement accounts. This would mean making sacrifices in other areas, such as vacations, dining out, and saving for emergencies like veterinary care for their two senior citizen dachshunds, home repairs, and life's other unplanned events.

Here is more of Richard's story. 

New car prices have forced many Americans — including us — to take an alternate route to finding dependable and affordable transportation. For the past five years, my strategy has been to seek out extremely well-maintained older model used cars with very low mileage.

I have been driving a 2005 Saab 9-2X Aero with one previous owner who drove only 29,032 miles in 15 years. After taking care of some deferred maintenance, the car has been flawless for four years and 20,000 more miles. It costs only $800 for a year's insurance. I paid $12,000 cash for the all-wheel-drive turbo sporty hatchback. Four years of no car payments have been wonderful.

I chose the Saab 9-2X because it is a low-production car — just around 8,800 were made by Subaru for Saab in 2005-06. The car is essentially a luxury version of Subaru's well-loved WRX. And the 9-2X has become collectible among Saab fans and Subaru enthusiasts. 

Another reason I chose the Saab is because small cars with manual transmissions are out of favor, so prices are more flexible.

I've spent around $13,000 for a barely used, fun-to-drive, retro-styled car whose classic shape seems immune to time and trends. I expect to sell the car for between $8,000 and $10,000 when it is auctioned on Bring a Trailer in a few weeks.

But that $13,000 doesn't tell the whole story.

This week, my newest used car arrived from Texas. It's a spotless 2012 Mini Cooper with just 11,116 one-owner miles. I paid $11,000 cash, plus another grand, to have it shipped to Detroit from South Padre Island, Texas. The car still has its original tires. I bought winter floor mats at the Mini dealership, a new gas cap (the old one's tether broke), and a new cabin air filter, and I changed the oil—which cost around $200.

That money from the sale of the Saab lowered the acquisition cost of the Mini to between $3,000 and $5,000 and kept me off the car payment bandwagon for another five years. Also, insurance for the Mini is $18 less per year.

Richard is not the only American looking for ways to avoid going deep into debt by buying a new car. 

According to S&P Global, the average age of America's car fleet is now 12.6 years. So, people are driving their cars until they are basically worn out. 

If you are like Richard and want to buy a used car, do your homework and get the most reliable model. 

In my recent report on the most-loved car brands, a new study by iSeeCars says the owners of the most loved car brands keep them for 15 years or longer. Check out my report here on which cars and car brands are the most loved.

In another of my reports, you can find out which cars are the most likely to go 250,000 miles and beyond. 

Also, check out my report on a Texas man who went in to test drive a Toyota Tacoma and left the dealer with a $240 ticket from the local police. It's not the first time the Toyota dealer failed to put a temporary license plate on a test drive; here is Daniel's amazing story. 

Tell us your story. 

Are you choosing to drive an older vehicle because of the new car prices, interest rates, and insurance costs? If so, click the red Add New Comment link below and let us know.

I am Denis Flierl, a Senior Torque News Writer since 2012. I’ve invested over 13 years in the automotive industry in a consulting role, working with every major car brand. I am an experienced Rocky Mountain Automotive Press member. You'll find my expert Subaru analysis here. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.

Photo credit: Denis Flierl via Subaru