Selling new car to buy old?
Posted by jed1son@reddit | askcarguys | View on Reddit | 30 comments
Hello,
TLDR: I’m 18 and grew up financially supported, but now I feel unprepared and frustrated because my parents won’t teach me about money. I want to sell my newer car and buy a cheaper used one so I can be more responsible and learn financial independence. My parents disagree and think cheaper cars can end up costing just as much or aren’t worth it. I’m trying to figure out if I should stick with my current car or switch to a used on
I’m 18 years old and I’ve been blessed with my parents having a good amount of money and being able to support me financially really all my life buying me whatever I want and always having the necessities without a worry.
This sounded good and all to me until I’m 18 and I still don’t know how money works and my parents also don’t want me to “worry about money” yet, so they won’t let me know about our finances, which gets frustrating when I want to know my car payment and insurance (I’ve had a minor crash already).
So after a little heated argument with my mom, I brought up my idea to sell my 2026 Toyota Camry LE and to buy an older car. My idea coming from my side is that this is being financially responsible because a cheaper car means cheaper insurance and just a cheaper cost of simply driving, because I don’t think I really deserve a nice car like a camry right now even if it has really good mpg and looks cool. I’ve been really interested in old Toyotas that are around 80-100k mileage, because I think by the time I drive said new used Toyota into the ground, I’ll be able to try and buy a better car.
I’m pretty laid back when it comes to car desires or just money desires in general but my parents also tell me buying cars isn’t something I should cheap out on. Which I get but I’m not educated enough to know if they’re right or not, and I always see Toyotas going smooth at 200k+ miles which makes me want to get a used one, but they’re so opposed to it, saying things like the maintenance will cost the same as if we buy a new car, or it’s just as expensive to change the timing belt and whatnot. My parents are also the type to see things at face value and superficially, which I think is another reason they don’t want me to buy a used car.
I come to this sub to ask for advice, should I look into getting a used car that is reliable but cheap to buy to drive into my 20s? Or should I be thinking about learning to appreciate my Camry? If the answer for the first question is yes, what car should I look into? Any advice on this situation is appreciated.
singelingtracks@reddit
if you get a gift you don't sell it to be financially responsible, that'll make the person who gave you the gift feel bad, and that's not responsible. turning down the gift would be the responsible thing to do, if you cant make the car insurance.
starting with your car is a very strange place as your setup, 99,9 percent of people would love a new toyota they can maintain and keep for years.
in ten years, in twenty you will have a paid off well maintained car.
now to learn about money theres an extrem amount of content out there.
start with a job, invest 20-30 percent of your wage into diversified stocks, learn how to budget the rest, calculate what you need weekly, monthtly.
get as much "help" as you parents will give you. your very lucky.
Substantial_Team6751@reddit
You don't need to sell your car to learn about money.
Get a job, get a 2nd job, contribute to a Roth IRA or 401k, have a budget, save up an emergency fund, get some books on finance.
eldredo_M@reddit
☝️this
DELAZ1@reddit
They would let you sell it and pocket the cash? If so you may consider doing that. Trade it for a lightly used 1-2 year old Corolla and then use the cash back to learn about investing and money management. Just dont sell it and put yourself into a car that might require repairs. Thats not doing yourself any favors.
Turbulent-Pay1150@reddit
generally speaking 1-2 year old Corolla's are a very poor purchase as they are as much or more than new Corolla's - better off if you just keep the car you have. No transaction costs and no worry about how solid the purchased car would be.
Jack_ButterKnobbs@reddit
Maybe rather than selling the car and getting an older one, Convince them its your responsibility to pay for the maintenance and insurance on the vehicle along with paying for your own gas and stuff if you dont already. That way you learn the financial responsibility of keeping and maintaining a car but get the luxury and fortune of driving a new camry at 18. Realistically if you are mindful of it and willing to learn financial responsibility you are already on the right foot compared to people who just swipe credit cards without thinking, or trust fund babies.
Option 2 would be convince them to let you get an older weekend car that you would pay for fully yourself. that way you get the maintenance, insurance, and all that jazz but dont loose a reliable daily driver to get you to and from school or work.
Critical-Magician421@reddit
Do not sell a new Toyota
That is not financial. Good sense.
You can start learning about money other ways.
There is a saying called pennywise, pound foolish.
Having a new good reliable car will be
Having a new reliable car like a Toyota Corolla will be better financially.
prairie-man@reddit
You didn't say so specifically, but based on your description; your parents got the new Toyota for you. In other words, you aren't stuck making monthly car payments.
Stick with the new car, because it's under warranty. Any problems that might arise will be covered by the dealership. Thinking you can find a used, reliable, cheap alternative is going to be nearly impossible.
You enjoy an advantage by having parents trying to be helpful. Certainly you need to learn how to manage money and basic financial principles. One way forward would be to find a part time job. Open a bank account to save the money you will be making.
Talentless_Cooking@reddit
He isn't going to learn anything from a new car, there's lots to learn and experience having a used car.
english_mike69@reddit
But none of that learning experience is good. It all revolves around wear, tear and fixing things at in opportune moments…
Talentless_Cooking@reddit
You're going to remember what a wheel bearing sounds like when it fails, that's the point. Nobody wants to build character anymore...
english_mike69@reddit
You’re selling a new car, taking a huge loss on it and buying something cheaper that you’ll end up paying on in repairs.
That’s some really dumb shit. That$5k in new car taxes, fees and registration - gone. $30k new, may get $24k… may. That’s $9k to “build character” and get in an older car.
This is why America is in debt. 😝
prairie-man@reddit
"I feel unprepared and frustrated because my parents won’t teach me about money." "my parents also don’t want me to “worry about money” yet, so they won’t let me know about our finances" "my parents having a good amount of money and being able to support me financially really all my life buying me whatever I want"
OP is not asking how to get started learning how to work on cars
Talentless_Cooking@reddit
Then they will learn how to save money.
SpaceCat72@reddit
So you want something you can work on and maintain yourself, I gather?
english_mike69@reddit
Dumbest idea ever. Ok, not quite ever but still dumb.
So you sell the car. That car your folks spent $30,000 plus taxes, fees, registration (which will add another$5,000ish) - totaling about $35k, you’ll be able to sell for about $24k, if you’re lucky.
If you think pissing away $11k is a great way to learn about money, I have a bridge to sell you and a short yellow bus you can ride in to get across it.
jonnyt88@reddit
OP - Keep your new car. Its under warranty and paid for. Also selling it might upset your relationship with your parents which doesn't sound terrible.
Want to Learn about money? Ask your parents to pay "Bill Collector"
figure out how much a loan would be on your car and pay it each month
Get quotes for your own auto insurance and pay it each month
Pay Rent
Pay Utilities (Heat, Electric, internet)
Pay cell phone
Pay it to your parents. They can stuff it into an account and give it back to you in 5x years. But it will get you in the routine of making various payments, budgeting vs your income, etc.
Also make sure you pay for your own social life.
jrileyy229@reddit
It's good that you suddenly have some self awareness... But no, you don't sell a new car to buy an old car.
You want to learn about money, here's a free lesson: Your parents bought that Camry for 30k... After tax and fees, it was 33k. If you go to sell it back to the dealer, they're going to offer you 25k. So in executing your plan, you just lit $8000 on fire.
So if you want to be financially responsible, you should then pay your parents back that $8000 loss. Minimum wage varies widely by state, but let's say it's 10 an hour... Which you'll actually only get to keep $8 of after taxes. So you need to go get a job at Subway or McDonald's and work 1,000 hours to repay your parents. Do you want to work at McDonald's 20 hours a week for an entire year in order to learn how money works and square up with your parents? I'm thinking not
pbrown6@reddit
Just keep the car dude.
If you didn't already have a car, I would 100% support you.
What's stopping you from going to the library and reading about financial management?
s92e92spen15a55t1ar@reddit
I like the initiative but I don't know that it really makes sense to sell the new car now. It would've made more sense to buy a used car before they bought the new car, but now that's the new car is already bought, it'll be hard to sell it without incurring a significant loss due to depreciation. If you can sell it without losing too much, then it might make sense. That being said, you can also just learn all about money without having to sell the car.
espressocycle@reddit
Of all the things you need to learn in life, how to keep an older car on the road is pretty low on the list. Maintain the car you have and you can keep it for 20 years and have money to spend on more important things.
Trypt2k@reddit
That's a terrible idea, considering you want to then use whatever money you made for questionable stuff. It looks like you're just looking for some pocket cash and put up with the lesser car, but this WILL bite you as your parents say.
The 2026 Toyota will last you for 10 years with minimal cost, there is no reason at all to get rid of it for a "cheaper" one.
Unique_Mix9060@reddit
Ok the answer to that question really depends on how into cars are you, do you even like or care about cars like we “car guys”? if the answer is no, than no literally don’t sell your Camry it is a perfectly reasonable and reliable car for a 18 year old actually for anyone as a commuter car that will last them years.
If your answer to the first question is a yes, than my answer to your question is maybe, on one hand like you said you selling the new car, and buying a slightly used car allows you some more leeway to learn about fixing cars when they break, and with potentially extra money left over you could also invest and learn about “financial management” for yourself.
On the other hand you can just keep the Camry as a reliable daily driver (every car guy needs a reliable daily too, even crazy super car owners do) and get a job and save some money for a cheaper car that gives you more chance to work in it since there are some repairs that just pops up when a car ages, and I understand both you and your parent’s perspective, so sit down with them and explain how you feel about your desire to learn more about managing money, and about the families finances.
My parents got me involved with their finances since I’m like 16years old
SyntheticOne@reddit
Consider for a moment that rare instance when you parents are right and you are wrong.
What parents care most about are their kids. A newer car such as you Camry is much safer than most used cars... all those Toyota Safety Sense features can save your life and giving that up is very hard for parents to walk away from.
My advice is to follow their lead, keep the Camry (and be very grateful for that), and learn household economics in all the other ways to learn that does not involve your well-being.
AlaskaGreenTDI@reddit
If you were car shopping without already having the Camry, I’d agree with your premise. But seeing as you already have it, and presumably are only paying for the insurance (since you’re concerned about the insurance cost), I would eat the extra insurance and be happy to have a new car and put any extra money somewhere else. The only way it makes sense to me is if you have a very good plan of how to leverage the money you’d pocket from stepping back into an older car and/or if you’ve checked on the different insurance costs and it’s truly a crazy savings for you to step back into the used car.
Puzzleheaded-West159@reddit
Best place to learn about money is /u personal finance or getting a job - preferably sales and paying bills
Talentless_Cooking@reddit
Honestly, your parents are pretty wrong. The money saved from payments and insurance will more than cover maintenance and breakdowns of an older Toyota.
The issues with repairs often come with old luxury or cars that didn't have large production numbers. Even if you got a Lexus, it's mostly all the same mechanical parts.
Having an older car will teach you much more about driving and understanding how your car works. We in north America have a bad habit with new cars, most places will just make the nessesary repairs and maintenance, saving them so much money.
Super_Fisherman529@reddit
try the rdh app https://apps.apple.com/us/app/the-rdh/id6761195810
BigYesterday6059@reddit
Toyotas come with good warranties and free maintenance for the first 2 years. You'll also be taking a big hit in depreciation on the price of your now-used toyota.
You're better off keeping the car and treating it nice. It'll probably last you well into your 20's or 30's.
There are all sorts of issues with older cars. Breakdowns are far more common, the safety is far worse, and with older cars preventative maintenance is far more important. In the first 100k of a car's life, you can easily get away with only changing tires and oil. After that, you've got to worry about belts, PCV valves, tensioners, fuel filters, transmission fluid, water pumps, fuel pumps, alternator, shocks, wheel bearings, ball joints, hoses, bushings, etc. At shop rates, this can get very expensive.
Sure, toyotas can make it to 200k with few issues IF they've been maintained well and driven nicely. God knows what the first owner did for the first 100k miles. If you're not an expert at reading cars (and people), it's a gamble on if you've bought a good or a bad used Toyota.
You also run into the issue of your car being worthless in the eyes of insurance. It'll get totaled by any minor accident and you'll be left with a 3k check and no way to get a new car.
I would never buy a new car, but if I found myself in a situation already having one, I would not want to trade down to an older car. It's just so much more headache.
HKGPhooey@reddit
I get why and what you want to do. And I think you mean well. But you’re currently ahead of the game. You are fortunate enough to have parents that bought you a brand new Toyota. This vehicle should last you a long time. Which means you don’t have to worry about a vehicle for a long while. Concentrate on other things in life. You can still learn about financial responsibility. Everywhere in Reddit, there’s someone whining and bitching about not having enough money to live. You have an advantage. Use it.