Yesterday, I submitted the post below as I struggled with whether or not to sell my Lexus SC convertible, which I purchased new for $66K before adopting a Mustachian philosophy. Today the deed is done. This morning I lowered the roof, loaded my mountain bike into the back seat, and took my final drive straight to the dealer. My bicycle will now become the ultimate convertible. The level of anxiety and indecision I felt in regards to selling the car was very interesting - it demonstrates how much power material goods can have over us, which in turn become part of my reason to sell the car. Financially I still have mixed feelings since I sold a car that was in pristine condition, with under 18,000 miles, for $29K (A whopping $37,000 of depreciation!!!), but I feel a sense of relief, like Frodo after the ring was cast into Mount Doom. I will miss having such a gorgeous fancy-pants vehicle, but by shifting my focus aware from material luxuries I hope to live a deeper life. With garage space now freed up, I envision both surf boards and paddleboards in my future, and I'm one step closer to living-simply-in-San-Diego.
****Original Post in the Need Advice section*****
Hello fellow Mustachians. I'm in need of little advice and emotional support. I've been blessed with a great career and relatively frugal spending habits so I had accumulated a respectable stash of money by age 35. Not quite sure what to do with the excess accumulated earnings I foolishly decided to purchase a Lexus SC Convertible for almost $70K - paid in cash. (Please spare me the punches-to-the-face, my remorse runs deep). This car became my occasionally used pleasure vehicle since I kept my super reliable '97 Honda Civic. Fast forward 7 years ahead to the present...I now have 3 kids (too many to squeeze into the vehicle), the Honda Civic still runs great, and the Lexus has under 18,000 miles on it - I’m averaging <2,500 miles per year.
Thus my cost per mile to date is >$3.65 before even factoring in insurance, gas, and maintenance. The dealership has offered to purchase the car for $29,500, slightly above the KBB dealer value for a vehicle in excellent condition.
Here’s my dilemma: If I sell it, my cost per mile will exceed $2 (($66K - $29K)/18000miles) - a depressingly high number. Alternatively, given the fact that my vehicle as depreciated by ~60%, with so few miles, I could plan on keeping it for another 15 years. Overtime, the total cost of ownership would go down when divided by mile driven and it wouldn't feel like such a loss.
Based purely on the math, I know it's probably better to sell. I can invest the 29K and purchased a used Toyota Matrix or Honda Fit for about 10K. But emotionally it's very hard to take a 60% loss on vehicle that is practically in mint condition. In addition, it's a beautiful car and I live in San Diego - perfect convertible climate. With this background I welcome feedback from my thoughtful fellow Mustachians.
Advice, support and taunts, at my ignorant fancy-pants purchase, are all welcome.
