Unfortunately a few weeks ago I was the victim of a car accident that totaled my vehicle - fortunately I was unharmed.
I have a very good insurance company and they are paying out about $9,500 for the total loss.
Regardless of whether I *need* a car or could reduce car usage (which I am trying to do), I was wondering if this group could help me decide which is the better option financially:
- My parents' preference (they had given me the old car and still...ermm... share their opinions about my financial decisions - I'm 26): they want me to use most of the total loss check to buy a used 2008-2011 Toyota Camry or Prius, or other very reliable car (Honda Accord, etc) such as those listed on the MMM site here -
http://www.mrmoneymustache.com/2012/03/19/top-10-cars-for-smart-people/.
- Another option: put the entire total loss check in my Wealthfront account (which is a spread of Vanguard ETFs - I don't plan to touch it for a number of years if not retirement. account currently has 35K in it. Also have a 401K and a Roth IRA ranging between $5K-10K.) Then, without a car, I would probably end up spending about $2,000 on ride share trips (Uber, Lyft) per year (est. $40/week or 4-5 rides per week). I have an excellent salary so this isn't a burden. (Meanwhile I would also obviously work on reducing car/rideshare use and biking instead.)
- A third option: put most of the total loss check in Wealthfront and buy a much older used car, e.g. 2003-2004 year, for say, $3K. I don't have experienced buying used cars and don't know if this is advisable.
- Other options...?
Very curious to hear your recommendations.
Addition/edit: I have no debt and my net-worth is around $145K in savings/checking/retirement etc. Very low monthly expenses. $90K pre-tax salary. I also don't plan to pursue early retirement. (I like making smart financial decisions but do it more out of desire to save for the future - I'm not looking to retire at 40 or anything like that. I am fortunate to love my job / love my profession and hope to work til 65 or beyond.)