Suze Ormanthe renowned financial guru, has long advocated buying cars and keeping them for longer periods, a strategy that is in line with current automotive trends. In a recent interview with Go Banking Rates, Orman emphasized the financial wisdom of car ownership over the long term.
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“When I buy a car, I keep it for at least 10 to 12 to 15 years or more,” Orman says. “I am currently entering my twelfth year of owning my car and I have no plans to get rid of it in the coming years.”
Orman’s approach reflects the evolving behavior of American car owners. According to S&P Global Mobility, the average age of cars and light trucks in the US reached a record high of 12.6 years in 2024, up from 12.5 years in 2023. This trend represents a significant increase from two decades ago, when the average age of vehicles only 9.7 years.
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She also criticizes the practice of frequent car upgrades, especially leasing. “I don’t buy a car every three years like most of you do,” she said. “I don’t lease a car every three years like a lot of you do, just to drive a car and impress people you don’t even know at a stop sign with money you probably don’t even have.”
While Orman’s advice may seem conservativeit is becoming increasingly relevant given the current car market and rising car payments. According to Experian, the average monthly car payment for new vehicles was $735 in the first quarter of 2024, up 0.4% from the previous year. Used car payments also rose 0.4%, reaching $523 per month.
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These high payments are largely due to the rising cost of vehicles. According to Kelley Blue Book, the average price of a new car at the end of 2023 was $48,247. Even used cars cost an average of $26,091, highlighting the significant financial commitment associated with purchasing vehicles.
The financial consequences of purchasing versus leasing are significant. A 2024 analysis by MST found that leasing over a 39-month period resulted in a total cash outlay of $16,622.19, compared to $18,910.09 for purchasing. However, by purchasing you build equity, with the vehicle retaining a value of $11,512.48 at the end of this period.
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Despite these high prices and payments, car ownership remains common in the US. A Forbes Advisor report found that 91.7% of US households owned at least one car in 2022, while 22.1% owned three or more.
As car costs continue to rise and economic uncertainties persist, Orman’s approach to car ownership may become increasingly attractive to consumers looking to maximize their car investment while minimizing long-term expenses. By avoiding the cycle of frequent upgrades and high monthly payments, consumers can do just that can potentially save thousands of dollars throughout the life of their vehicles.
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This article Suze Orman says you should keep your car ’15 years or more’ instead of leasing a new one every three years just to impress strangers originally appeared on Benzinga.com
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