I’m Driving a Paid Off 10 Year Old Honda CR-V Because It Costs Nothing to Run and Who Wants a $500 Per Month Car Payment?

Should you buy a new Honda CR-V or keep driving your older model? Michael drives a 2015 Honda CR-V and couldn't be happier with the SUV. He's not about to get into a high car payment. Here is his story and why it's a smarter choice than buying new.

My car is ten years old, I'm making six figures, and I refuse to pay for something I don't need.

Those are Michael Rusli's (@michael.rusli) sentiments, which he shares with others who are willing to listen. I found his interesting post while browsing the Honda CR-V information. He owns a 2015 Honda CR-V, and he couldn't be happier.

He says,

"I had an older Honda CR-V, sold that for a profit, and got another CR-V with that same money; if it ain't broke, don't fix it."

Michael is a financial wealth management advisor who is wiser than his years. He's a Millennial who "practices what he preaches." He lives a no-car-payment life and keeps his paid-off Honda CR-V as long as possible.

He proudly states, "I'm driving a paid-off ten-year-old car because it costs nothing to run, and who wants a $500 per month car payment?"

Michael's financial freedom and control over his expenses are things he wouldn't trade for the world. This sense of empowerment is a key benefit of driving a paid-off car.

Most people want to drive a new car with the latest features and new technology, but it comes at a steep price. You have a large car payment, higher maintenance costs, license plates, taxes, and insurance. Here is why Michael's statement makes sense.

How Much Is the Average Car Payment?

Michael asks why he would want a $500 car payment. However, according to a report from Bankrate, as of February 2025, the average monthly car payment for a new car is $737, and the average for a used car is $520.

So, if Michael were to trade in his 2015 Honda CR-V for a new one, he'd have a $700 car payment, not $500 unless he buys another used car. But why should he do that when his CR-V is running well? Driving a paid-off car keeps you from being tied to a hefty monthly car payment and frees up money for other things.

Experian says 43% percent of vehicles financed in the third quarter of 2024 were new vehicles. Financing for used vehicles sat at 57.04 percent in the same quarter.

Experian says,

Of consumers purchasing new vehicles in 2024, 80.28 percent chose to finance their vehicle

The average cost of full coverage car insurance is about $220 per month.
New loan amounts increased slightly, year over year, in the third quarter, from $40,332 in 2023 to $41,068 in 2024.
A 2025 Honda Sport Touring Hybrid costs $41,100 without manufacturer handling and delivery fees. So, Michael would potentially have a $900 per month car outlay, including full coverage insurance.

Bankrate says you can lower your payment by going with a longer-term loan, like 72 months, but then six years is a long time to be locked into a vehicle.

Key Points to Consider:

Depreciation: New cars lose a significant portion of their value as soon as you drive them off the lot, while used cars have already gone through most of their depreciation, meaning you're not losing as much money over time.

No car payment: When your car is paid off, you can significantly improve your budget and financial flexibility.

Potential for lower insurance costs: Depending on the car model and your insurance provider, an older car will have lower insurance premiums.

Imagine This Scenario

Many Millennials would like to buy new condo or townhouse instead of renting but do not have the financial resources to do so. You could save about $11,000 a year towards a down payment without a car payment.

So, you drive your ten-year-old car, and in three years, you would have $33,000, enough to get into a starter home. You are building equity instead of driving a new car that goes down in value.

Reddit user herrniemand gives this good advice.

"If you don't have a car payment, think of what you can do with all that extra money per month! It's basically like getting a raise! It might even be tempting to start new car shopping, to take advantage of high used car prices, and trade in your car while it's still worth something. You can get into something nice for the same or even lower payment than before."

"Don't do it," he says.

"Instead, use this as a perfect opportunity to save money since most of us don't save enough. After all, you've been managing without that extra monthly money for the past few years (if you haven't, then obviously use it to pay off any other debts first), so it should be relatively painless to stash it away rather than spend it. If you can set up an automatic paycheck deduction so you never even see it, that would be even better."

He finishes by saying, "It's almost always better to keep driving a paid-off car for as long as it's in decent shape, and don't underestimate the luxury of savings vs. debt."

Check Out Some of the Comments

johnlee7431 - 10 yrs is not old, my 2000 Accord is still running good with 350k miles.

Jay L. Henry - That's how we retired in our 50s.

shelgen - My husband and I both make six figures. He drives an '08, and I have a '09. Never waste money on things that don't add value. After 30 years so far in Corporate America, you want to start saving young because you'll want out as soon as you can.

Dan Skott - You can put $500 in the bank each month, so when you need a new car, you'll have most of it saved. In those 10 years, you'd have 60k plus with compounded interest.

Leo - I have a 2004 Sienna; it's paid off and gets me from point A to point B. My banker told me I qualify for a car loan of 100k with a payment of 1700. No, I'll invest it in another rental property in Waco or Concord.

Final Thoughts and Questions for You

Think of a car as transportation, not a status symbol. If you make lots of money, buy and enjoy a new car. But many Americans are not wealthy. If you live now without a car payment, you'll be able to live later and have an envious lifestyle.

How About You?

Do you drive a paid-off car? If so, click the red Add New Comment link below and tell us about your experience.

Check out my new car story titled; So, I Bought a New Lexus RX 350 Just to Get the 360 Camera, Now I Have a $770 Car Payment, and I’m Wondering If it Was Worth It

I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you'll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.

Photo credit: Denis Flierl via Michael Rusli

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