Here's What Happens When You Keep a Car For Over a Decade

Why Bundling Insurance Doesn't Always Make Sense

In many parts of the United States, it's difficult to manage without a car due to a lack of convenient public transportation. And if you're responsible for transporting other people (such as taking your kids to school and activities), going without a car is even harder.

Unfortunately, owning a vehicle isn't cheap, and since car prices have been even higher as of late, the problem has only gotten worse. Per Car and Driver, the average price of a new car in spring 2023 was $48,008, while Cox Automotive reported an average used car listing price of $26,969 during the same time period.

One way to really get the most value out of a car purchase and also keep your costs (which go beyond just monthly auto loan payments) lower is to keep a car for as long as you can. Here's what to expect if you've committed to hanging onto your car for more than 10 years.

You don't have a car payment

If you keep a car for more than a decade, the number of years you'll be without a car payment will depend on the initial length of your loan. Whether that's just a couple years or quite a few, not having to make a car payment every month can be a major boon for your finances. If you bought a used car, your payment may have only been a few hundred dollars a month, but if you bought new, those payments may have eaten up a big part of your monthly budget. Without a car payment, you can save that money, invest it, or put it toward a goal like buying a home.

While no longer having a car payment is worth celebrating, it doesn't mean the other costs of having a car disappear. You'll still need to pay for gas, of course, and regular maintenance, such as oil changes and buying new tires, becomes crucial to keep your car in good working order. And you absolutely can't go without auto insurance -- but there may be good news on that front for an older car.

Your insurance costs could decrease

In addition to kissing that car payment goodbye, you might also see lower auto insurance premiums as your car gets older. Progressive notes that in general, car insurance is cheaper for older cars. This is due to the fact that your car depreciates in value over time, meaning that if the car is totaled in a wreck, the auto insurer wouldn't have to pay out as much money.

You can also save on insurance on an older, paid-off car by dropping some coverage types. For example, you may not want to keep paying for full coverage insurance -- ValuePenguin found that this type of policy is only worth the cost if your car is younger than 10 years old. If you're still paying on a car loan, you won't have the option to reduce coverage (which makes sense, as your lender wants to be sure its asset is protected).

You may have to pay for unusual repairs -- or live with quirks

It stands to reason that the longer you keep a vehicle, the more likely it is that your car will require less-common repairs. You might have to replace parts that only wear out over a long period of time. Throughout my own experience of owning an older car, I've collected a host of broken components that I've either learned to live with, or I've paid to have repaired.

My trunk's hinges are broken, meaning I only use the trunk when I absolutely have to. And two out of four electric window motors are broken and I haven't bothered coughing up the cash to fix them. But I did shell out $1,250 to fix the coil springs in the suspension late last year, because not doing so would have resulted in more damage down the line -- and possibly even a car accident. So when it comes to repairs on my old car, I am judicious, for the sake of my checking account.

If you're someone who prioritizes driving a newer car, it might not be appealing to keep your current car for years past paying off your auto loan -- and that's perfectly okay! The nice thing about our personal finances is that they're just that: personal. But if you want to spend less on transportation costs over time, hanging onto an old car might be a good idea.

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