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 on a recent Women & Money podcast episode, in which a listener named Ruth asked Suze Orman for advice about her 20-year-old car.
Ruth’s question: “Should I conquer my nostalgia or drive Saturn into the ground?”
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Ruth explained that she inherited the car from her parents and has been driving it ever since. Although the car is not flashy, it drives well thanks to regular maintenance. Ruth also said she had saved enough to buy a new car, albeit a modest one. However, she was hesitant to sell due to the vehicle’s sentimental value.
Before addressing Ruth’s situation, KT shared that their car is over ten years old and has been well maintained through consistent maintenance. This experience informed their perspective: maintaining 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 someone offering to buy it on the spot. However, Orman appreciates the nostalgia associated with their car and is determined to keep it until it is no longer running.
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Regarding Ruth’s question, Orman emphasized the financial and emotional aspects of her decision. Since Ruth has the money to buy a new car, Orman acknowledged that as an option, but she pointed out some factors to consider:
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Higher costs for a new car: A new car often comes with higher costs, including higher insurance premiums and ongoing maintenance. While a newer vehicle can provide peace of mind, owning one isn’t necessarily cheaper in the long run.
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The value of saving: Orman encouraged Ruth to grow her savings. If that money earns 4.5% to 5% interest in a secured account, it could continue to work for her financially while she drives her current car.
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Sentimental attachment: Orman acknowledged Ruth’s emotional connection to her car, saying, “Your heart is in it.” Ruth herself understands the sentimental appeal of keeping a beloved vehicle.
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Orman emphasizes the importance of a balance between practicalities and personal preference. If a car runs well and is well maintained, there is often no rush to replace it, even if it is older. Nostalgia and financial considerations can go hand in hand – especially if savings can be leveraged to earn more over time.
