How To Tell When It’s Time for a New Car

February 20, 2023

In this highlight, we discuss how to tell when it is time for a new car.


When it comes to deciding whether to get a new car, there are a lot of factors to consider. Taylor asked, “How do you decide it’s time to get a new car?” She explained that she and her husband have a paid off 2005 Ford Taurus with 200,000 miles on it, but they have a baby on the way and are wondering when it’s no longer safe to keep driving an older car.

It’s important to think about the safety of your family when it comes to your vehicle. I asked if Taylor and her husband had talked about getting a new car before the baby was on the way, and she said they had discussed it more in terms of the size of the vehicle rather than its age or condition.

My wife wanted an SUV when we were expecting our first child, and I emphasized the importance of making sure our family is safe and protected while driving. I want you to have peace of mind that if you had to go visit family and they’re three hours away, that when you go get in that car in the morning and load up all the things that you have to keep your children safe and happy while you’re over the relatives, that you can actually do it.

Of course, safety isn’t the only consideration when it comes to getting a new car. Financial factors also come into play. We have a car buying rule called the 20/3/8 rule that we often talk about on the Money Guy Show: put 20% down, finance for no more than three years, and make sure your payments don’t exceed 8% of your income. By following this rule, you can make sure you’re not overspending on a car and putting yourself in a financially risky position.

So, when is it time to get a new car? The answer depends on a variety of factors, including the car’s age, mileage, and condition, as well as your family’s needs and budget. I suggest having hard discussions with your spouse or partner if you’re unsure about whether your current car is safe or reliable enough for your growing family.

Ultimately, the decision to get a new car is a personal one that requires careful consideration of all the relevant factors. By keeping safety and financial responsibility in mind, you can make the best decision for you and your family.



Most Recent Episodes

Financial Advisors React to Money Advice from ChatGPT

Will ChatGPT be your new financial advisor? In this react episode, we’ll break down some money advice from ChatGPT and compare it to our own thoughts and opinions. Enjoy the Show? Sign up for the Financial Order of Operation (FOO) Online Course! Sign up for our Know...

Financial Planning 101 (By Age) 2023 Edition

Throughout every decade, there are different areas of your financial life that come in and out of focus. In this episode, we'll discuss what you need to focus on by age, pitfalls to watch out for, and how to know you're doing it right. In this episode, you'll learn:...

Is the 2023 Housing Crash Around the Corner?

Housing prices skyrocketed after the pandemic to all-time highs, and mortgage rates have more than doubled since 2020. Homes are harder to purchase for more Americans, which means it’s more important than ever to make sure you are ready to buy before purchasing. In...

Watch This Before Rebalancing Your Investment Portfolio!

85% of Americans don’t rebalance their 401(k). Are they making a huge mistake? In this episode, we’ll discuss the “why” behind rebalancing, how to do it, and the data on whether or not rebalancing can increase your return. In this episode, you’ll learn: What...

Don’t Make This HUGE 401(k) Mistake!

Americans are making a HUGE mistake in their 401(k) that could cost them thousands by retirement. We’ll talk about why this is happening and how you can avoid making the same mistake in this Q&A episode! For more information on how to make the most out of every...

Alex Hormozi’s Top Money Advice! (Financial Advisors React)

In this episode, we react to Alex Hormozi's financial advice. Enjoy the Show? Sign up for the Financial Order of Operation (FOO) Online Course! Sign up for our Know Your Number Course! Check out our Net Worth Tool! Get FREE downloads full of financial advice from...

Everything You Need to Know About Finances in Your 20s

In this episode, we discuss everything you need to know about finances in your twenties. In this episode, you’ll learn: The top financial advice for your twenties How to start building wealth and the steps you should take Enjoy the Show? Sign up for the Financial...

The Most Valuable Asset in Building Wealth!

This episode will show you how to maximize the most valuable resource you have - starting right at this moment. What is it, you may ask? It’s TIME. If you give your money time to grow, you’ll be amazed at how much your dollars can become - it’s incredible! How wild is...