“Drive a beater” is a common phrase tossed about on The White Coat Investor. The message is simple: cars are depreciating assets that will inevitably find their way to a trash heap. Buy only what you need and invest the savings. It sounds like good advice that will no doubt work perfectly.

Far be it for me to disagree with the many minds smarter than my own among the readership, but I am not convinced that your choice in cars is a purely financial one. I don’t think of cars as straight depreciating assets; rather, they are consumables intended to safely and reliably get my family and me from point A to point B and back to A again (as long as A is home and B is somewhere I want to “B”). Can this be accomplished with a downtrodden jalopy that is “good enough?” Maybe. But if my family were harmed in an accident where all else was optimized, I would be forever plagued by the question of whether they would have been better served by a vehicle that was sturdier or better equipped with contemporary safety features.

Some might argue that these safety features are overhyped and that they are a simpleton’s excuse to pay more for what can otherwise be accomplished with far less expense. Others relish in the spartan nature of their automobiles, highlighting rust and duct tape as badges of honor and delighting in playful anecdotes of flame-filled strandings on interstates. Why buy for $15,000 what can be bought for $1,500, they say? I sought to answer this question and perhaps invite ourselves to titrate our enthusiasm for penny-pinching.

To start: what is a beater? A beater is a pathetic thing of an automobile, typically meeting the following criteria—age greater than 20 years and/or more than 180,000 miles, with an exterior pocked with the scars of its hardships (holes and mismatched paint patches are not uncommon). The headlights have long since faded, and at least one door handle cannot be bothered to work (reflective of a previous owner who couldn’t be bothered to repair it). The exhaust is probably tied on. Nicer models may come with an accoutrement of stickers, such as “Wall Drug” or “I Summited Mt. Washington.” The interior is equally decrepit. Seats (usually vinyl or cloth) will be torn and stained. The gear selector is sticky and will always be sticky. There is climate control, if by climate control you mean a manual window and a heater that works but only if the AM radio is playing. A beater has an engine that runs, or at least jogs. Perhaps most importantly, a beater can be procured for less than 3% of the average price of a new car in America (currently just north of $50,000, so we will say $1,500 max).

Some gloat over their beaters, and I have been one of them. I’m not sure that’s wise.

Are Some Cars Safer Than Others?

Driving is dangerous (in other news, water is wet), probably the most hazardous task we take part in on a regular basis. We have a tendency to believe that newer cars are safer cars, and this logic is an excellent excuse to upgrade and pay more for a “safer” model. But are new cars really safer? What do the studies suggest?

According to the Insurance Institute for Highway Safety (IIHS), technologies such as electronic stability control, forward-collision warning, automated emergency braking, blind-spot monitoring, lane-keep assist, and backup cameras have significantly reduced injuries resulting from user error. Citing research from Partnership for Analytics Research in Traffic Safety (PARTS) and the National Highway Traffic Safety Administration (NHTSA), other technologies such as lane-centering assist and curve-adaptive headlights have either not been examined for benefit or demonstrated no tangible reduction in injury or mortality. So, while technology has evolved in a way that benefits drivers (and insurers), not all that glitters is gold.

More strikingly, motor-vehicle fatalities have seen no consistent decline—and in some cases increased—since 2014. Other factors affect driving safety, too. The condition of a vehicle matters. The size of the vehicle matters. Restraints, hardpoints, airbags, rearview cameras, crumple zones, and blind spots matter. But most importantly, the operator matters, and how you drive impacts your risk.

Taking it all in, one can surmise that while the technology has improved, the drivers have not. The type of car involved in the high-speed accident doesn’t matter if the occupants are unrestrained, inappropriately fastened, or impaired. To that end, the manner in which one drives matters as much as what one is driving.

Are all of these new expensive technologies worth the cost?

Assuming that you are a “safe driver” who minimizes the amount that you drive, who is fastidious about the condition of the vehicle and the appropriateness of the tire type and drivetrain for the environment in which you are driving, who has properly installed car seats, and who exercises impeccable seatbelt discipline, the selection of a car becomes a question of the extrinsic factors. After controlling for everything else that you can possibly control for, what is left is physics: your metal cage vs. the speedsters, lemon squeezers, lookie-loos and rubber neckers, oblivious lane changers, road ragers, texters, speed demons, tail-riders, and substance users of the world.

Is springing for extra safety features an adequate defense? I suppose one can never be certain. But I certainly feel better with a backup camera when reversing out of my driveway with little ones in the neighborhood. I drive more confidently with the “double check” of blind-spot monitoring. And I do feel better knowing that my vehicles are designed with crumple zones and side impact airbags to help absorb the blows from the inexperienced and ill-equipped who venture out on icy streets.

I am also a physician who witnesses motor vehicle trauma every day, specifically in pediatric patients. I routinely see the terrible consequences of distraction, impairment, and plain silly bad luck. I have observed the carnage of it all, and in the aftermath, I have wondered how my own vehicles and my own family would have fared. I accept and even embrace that our car acquisitions have leaned bigger, heavier, and newer as a result of my work.

In the event of the unspeakable, I would be beside myself if I had to ask whether an outcome would have been different had I not opted for the hooptie. This grows more and more visceral as my oldest approaches readiness for driver’s education. In choosing a vehicle, we are assenting to the risk associated with operating it in this crazy world. The robustness of it may not be a remedy, but it may be a hedge against catastrophe. Driving is a dangerous necessity, and how we approach the finances of it reflects our understanding of that reality.

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Are Some Cars More Reliable Than Others?

Cheap cars can be reliable. How reliable? It’s anyone’s guess.

Buying any car is a bit of a crapshoot: new lemons exist, as do old lemons. Sometimes that Honda with 250,000 miles is just getting broken in by the owner. Other times, it’s consistently breaking down or getting broken into. Reliability is a time saver and, thus, a cost saver. Are you more or less likely to lose time when your vehicle is in the shop (or when you are under the hood yourself) when that car is older or out of warranty? Again, it probably depends on the car.

But beaters don’t exactly instill confidence. By the way, how does one account for the costs (including time) in sorting out an older vehicle? In defense of warranties, they can be a waste of money, but they have saved me more than $10,000 in repairs in the 200,000 miles that we’ve put on our vehicles. I wouldn’t pay a whole lot extra for one, but there is a precedent for that working out, too.

Cars Are Consumption Items, But Not Like Toilet Paper

In the same way that a house is both a consumption item and an investment, a vehicle is both a consumption item and an insurance policy. They are a costly means of conveyance that carry my family and me safely and reliably. I may be wrong about that framing, but the financial benefit of buying a beater is overblown. Truly, if the difference between your financial success and failure is the difference between spending an extra $15,000 once every 10 years, then you’ve probably mismanaged your finances elsewhere. Even for a moderate-income professional, an outlay of $20,000 once a decade shouldn’t break you.

I am presenting an argument against a beater for beater’s sake. But more specifically, I am arguing for temperance in vehicle choice. Dr. Taylor Christensen’s excellent analysis goes deeper into the concept, but there are merits to a newer, beefier vehicle than the Geo Metro you are otherwise considering because Dr. Money Mustache told you to buy something like that. We can also understand that vehicle choice is limited to and guided by buying power (i.e., cash on hand) and phase of life.

For me, as a college kid with a net worth of approximately two stereo speakers and some Gordon Lightfoot vinyls, driving a beater was appropriate. That 1990 slate grey Subaru was awesome, and I still think about it. Equipped with a flat-four (boxer) displacing 2.2L, that monster (I named it Smeagol) had 130 furious horsepower and could do 0-60 most of the time. It’s probably still running out there somewhere, but at the time I was its handler, I’m pretty sure it didn’t have airbags. I also had no kids, and if I had perished in an accident, it would be sad but not as sad as leaving a spouse in the lurch. It was decent enough to get me pretty much anywhere I needed to go, and if I had kept it, Kelly Blue Book tells me I would have a trade-in value of $628 today.

But now life is different. We can afford a reasonably safe and reliable used car, which I would define as one with sterling IIHS and NHTSA ratings, a clean title, a factory warranty (at the time of purchase), and maintenance records to demonstrate its upkeep. I believe my kids are better served by not riding in Smeagol.

While mostly immaterial, people notice what you drive. They look at what you drive in the same way that they look at how you dress—and the opinions aren’t always unimportant. Let me be clear about this. Regardless of what you drive or how you dress, your choice broadcasts something about you. Maybe that message is “I am being responsible with my finances and the environment” or “I can make do with 3.5 wheels” or even “I wanna go fast.” In its most idealized form, this message might read to my kids something like, “This is a modest choice that strikes a balance between reliability, safety, comfort, and operating cost,” which they would interpret as boring and pledge never to buy a minivan.

This messaging is a lesser point, but it’s one worth mentioning. Children see what their parents drive, and they are attentive to what is (to me) a significant purchase. They learn important financial lessons from it. Jim Dahle makes this abundantly clear in his experience with finding a car for his daughter to use.

The real problem with cars and finances is the financing of cars. As of 2025, Americans carried $1.66 TRILLION in auto debt. Fed by a system that encourages “rolling” old debt into new, consumerism and showroom incentives reach deeply into pocketbooks. While the average age of a car on the road is 12.5 years, the average American cycles into a new ride every six years. More to it, the advent of car leasing has habituated many to subscription-based transportation (about 25% of all automobile transactions in the US are leases). This has resulted in an average car indebtedness of about $25,000 and payments between $500-$750 per month. These are statistics that make me want to take a bike.

There are few innocent victims, but the willingness of lenders to lend and borrowers to borrow has, in my opinion, perverted the concept of affordability. Even as a moderate-income professional, I could walk into a Mercedes dealership tomorrow to be graciously ushered into a car [loan] that I have no business dreaming about. At this point in my life, I couldn’t afford to even breathe in the general direction of a Porsche, let alone make eye contact with the owner. But such is the culture. Even intelligent high-income professionals are led to believe that they can “afford” such loans and leases, the payments for which are toxic to their long-term financial goals.

Now, those who pay attention to such things will be quick to point out that the average cost of a 3-year-old used car in 2025 was between $25,000-$30,000. “Chuck!” they will protest, “you cannot find a decent used car that is still under warranty and that will last 10 or more years for the $15,000-$20,000 you are referencing.” I agree it can be difficult. But you may be trading in or selling a vehicle, which isn’t worthless. You might also elect to buy from a private party, which is less expensive. If your household needs more than one vehicle, as most do in America, you might spend a little more on the people mover and a little less on the commuter. For this high-income readership, keeping the total value of owned vehicles under 1/3 of annual income is a reasonable goal.

A couple more takeaways: 1) you don’t need to buy a new car every six years, 2) as a high earner, you can absolutely save and pay cash for your cars, and 3) your choices are not limited to ultralux vs. rattletrap. You can probably find a very nice vehicle that has 10 years of life left and is not a beater.

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The Bottom Line

I like cars. I’d enjoy driving an Audi R8 or a Mercedes AMG GT or a Porsche 911 Targa. But sadly this is a dream incongruent with financial reality. C’est la vie. I consider myself a petrolhead, a car enthusiast. I’ve a fondness for overlanders and performance wagons and especially for the elegant reliability of Subaru Outbacks, Honda CRVs, and pretty much every Toyota. I enjoy Top Gear (original), Jay Leno’s Garage, Doug DeMuro, and Comedians in Cars Getting Coffee.

I acknowledge that my views on this topic may be influenced by an appreciation for the vehicles themselves. That said, I don’t believe that I squander money recklessly on dumb cars. Mine work just fine. They are safe and overengineered for our uses. Just as one might spend too much on vehicles, it’s also possible to spend too little. I think the phrase “buy a beater” is a bit lacking. This is not simply a financial decision, but it’s still one with heavy financial implications. I follow the below self-imposed guidelines:

  1. Select a vehicle that has enough seatbelts and appropriate latch points for your people.
  2. Select a vehicle that is NHTSA rated as 4 stars or above and/or carry a top IIHS Safety rating.
  3. Select a vehicle whose drivetrain is suited for your use (i.e., weather, terrain, traffic, and range).
  4. Review accident and title histories for all used cars being considered.
  5. If buying used, search for a vehicle with no deferred maintenance and complete records. This includes tire treads, brake wear, belts, and fluids.
  6. If buying used, confirm that all recalls have been addressed by the manufacturer.
  7. If buying used, prefer that the manufacturer’s warranty is transferable and intact.
  8. Research, understand, and accept the costs of ownership, registration, and titling fees.
  9. Ensure that the total value of all your motorized vehicles remains less than 1/3 of your annual income (riffed from Dave Ramsey).
  10. Shop around and engage multiple sellers of vehicles that fit the above.
  11. Buy with cash.
  12. Drive it for 10 years or more.

There is no denying the maths: you will absolutely come out ahead if you buy a $1,500 used Kia instead of a $60,000 BMW and invest the difference wisely. That’s akin to saying that you will manage weight more effectively if you practice intermittent fasting as compared to a Taco Bell-based diet. But can we not agree that frugality is not an endpoint in and of itself? In general, you get what you pay for. In my experience, paying a little more for a properly vetted vehicle has served me better than buying a beater.

It’s been years since our last car purchase (a used Ford and, years before that, a used Toyota), and I am reasonably hopeful that we have another eight-plus years until our next one. Our vehicles were in excellent condition then, and they have been faithfully maintained since. I don’t drive beaters anymore (until Smeagol returns after the kids have flown the nest). I also don’t plan on driving a car payment. Ours will probably be some of the older cars in the pickup line. But they are reliable and safe, and they have proven themselves as such over the years, miles, and inclement conditions during which we’ve counted on them.

I am OK with both the financial outlay and the solace that if the worst were to happen, the outcome wasn’t affected by my decision to cheap out on a Yugo. More broadly, I think we should beware of the tendency to “win too much” in this one-player game of personal finance. You don’t get extra points for being the richest patient in the trauma unit. Make financial goals and work toward them. Sometimes the best choices for you and your family cost more than you would otherwise like to spend. If you want to buy a beater, go for it. But you probably don’t have to.

[FOUNDER’S NOTE BY DR. JIM DAHLE: There are few topics more polarizing than this one in the WCI community, and I am definitely an extremist on this topic, mostly due to my life experience. I have driven all kinds of inexpensive cars in my life, and I find that these reliability and safety arguments are usually made by someone who does not have that experience. At this moment, there is a rattle-canned 2009 Civic sitting in my garage. However, it sits right next to a truck that almost cost six figures. I definitely prefer the truck, but both of them get me to work just fine. The key line in this post is, “But now life is different. We can afford a reasonably safe and reliable used car.” The idea behind driving a beater or living like a resident or whatever is that it is temporary. In the words of Dave Ramsey, you’re living like no one else now so that later you can live like no one else.

All that said, if you are on this blog, how you purchase your transportation should not significantly impact your financial life long term because of your income. The average doc earns something like $400,000. That’s a very different amount of money than the median US household income of something like $83,000. On that sort of income, you should be able to put away 20% of your gross income for retirement and still buy a brand new car every decade if that’s how you choose to spend your money.

I AM convinced that the reason the majority of Americans are not millionaires is sitting in their driveway. Saving $5,000 in lower auto-related costs per year (particularly depreciation), invested at 10% a year, grows to $2.2 million over 40 years. Even if you dial it back to 7% to account for inflation and shorten that investing career to 30 years, it still adds up to $472,000, about 6X the median 401(k) balance for a 50-year-old. So, if you’re not rich yet and you’d like to be, consider spending dramatically less on your transportation costs.

One way you can do that is driving inexpensive cars for a long time. Whether that’s a brand new car driven for 15 years or a used one driven for 10 years doesn’t really matter. The last few years before you get rid of it, that car will be a “beater.” If you really want to speed things up, consider driving a real beater now for a few years. But the risk of being stranded in a really impactful way or being in some sort of bizarre accident where a fancy new safety feature would have made a significant difference is not 0%. It probably rounds there, though. As someone who has been “stranded” and has been in my share of accidents, it just isn’t the tragic life experience many imagine it to be. You call the tow truck, Uber home or in to work, use a rental car for a few days, and maybe get a new car next week. It’s just four tires and a bunch of metal. There’s another one down the street that will work just as well. You aren’t what you drive.]

What are your views on cars? Should you buy the cheapest one you can find? Or do you prefer more luxury? How does the safety of your family play into the decision? 

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