“You need to get a new, dependable car before your old car nickels and dimes you to death!” This is the phrase that is commonly used to justify a major outlay of cash, usually in combination with entering into a long-term financial commitment. But is it really necessary? With costs of “regular” vehicles running from $20,000-$30,000, many find only too late that they have overextended themselves simply by bending to the conventional wisdom that new automatically equates to better. This decision may also be influenced by immense societal pressures that suggest only “losers” would drive an old car because they are unable to afford a new one.

Practical experience suggests something very different. I have driven old vehicles my entire life, and have compiled the vehicle cost data on spreadsheets. These data, including the mileage at which repairs were required, the type and cost of repairs, and the average cost per mile, month and year indicate that an old car is actually far cheaper and more economical to drive than purchasing a new car. Of course it must be stressed that regular vehicle maintenance is the key to longevity, and thus the spreadsheet can also serve as a log of required maintenance intervals. There also appear to be some models that are more capable of accumulating less troublesome, higher miles.

The mid to late 1970’s Plymouth Volare appears to be one of those vehicles that just keeps going and going. They are often found for only a few hundred dollars, but with the “Slant-6” or 318 engine, can provide years of dependable driving over 150,000 miles. The sister model is the Dodge Aspen.

My first car was a 1964 Dodge “440”, which is similar to a Polara. This vehicle was purchased for $125 in 1986 at a community auction. The car ran and drove well, with a 225 c.i.d. “Slant-6” and 3-speed manual transmission mounted on the steering column. I had to replace the speedometer cable and thermostat, which represented my only required maintenance, other than oil changes. I drove the car from Wisconsin to California, and owned it for approximately two years, logging approximately 10,000 miles for an average ownership/operating cost of 1.2 cents per mile.

My 1964 Dodge “440”, similar to the Polara. This was the middle line of the “330”, “440”, and “880” series. The car is different from the Dart 270, which is slightly smaller.

My next cheap car was a 1967 Chrysler Newport, which I purchased from someone who thought the car was junk, and undoubtedly believed that he was putting one over on me. I paid $150 for it, but before it was drivable, I had to pay $25 to have a radiator cap neck brazed on the radiator, had to fix the short circuits in the headlights and starting circuit, and had to rebuild the carburetor and give the engine a thorough tune-up. I purchased the car in the Summer of 1990 and drove it for over a year, making several 250 mile (one way) trips between college and home, and drove it to work every day. I put approximately 7,000 miles on the car, at a cost of $450, for an average ownership/operating cost of 6.5 cents per mile. However, I sold the car for $200 when I no longer needed the transportation, so had not gotten all the life out of it.

My 1967 Chrysler Newport. Before it could be dependably driven, I had a neck brazed on the radiator for the cap, and gave it a thorough tune-up. I also rebuilt the Stromberg 2-barrel carburetor and later installed Direct Connection electronic ignition. After that, the 383 ran great, and I managed to get 15 mpg on the highway.

These cheaper cars represent an extreme end-member of automotive financial philosophy. I also own two long-term daily drivers. I bought my 1973 Dodge Charger in 1987 for $750, although it was in poor condition and barely qualified for a daily driver at the time. Luckily, I had the opportunity to pursue automotive technology as a hobby, and was able to overhaul the engine and get it drivable. Up until 2000, I had put just under 30,000 miles on the car at a repair (plus original purchase) cost of approximately $3,300 for an average cost per mile of 11.3 cents. This translates to an average monthly cost of $21 over the 13 years that I owned it. Since 2000, I have driven it an additional 30,000 miles, for a current total of 59,000 miles and total ownership/operating cost of approximately $7,500 for an average cost of 12.7 cents/mile.

My 1973 Dodge Charger in Death Valley, illustrating its dependability. If you take a car through Death Valley, you must trust it!


The graph showing the average cost per mile for the 1973 Dodge Charger. After the initial outlay of $750, the average cost was quite high. But, as the miles accumulated, the average cost dropped despite new repairs being required, defining a logarithmic curve that is asymptotic with respect to the x axis.


This graph shows the cumulative cost of repairing and maintaining my 1973 Dodge Charger. Because the graph displays cumulative cost, the best situation occurs when the graph reaches a long plateau with very little rise.

My other long-term driving vehicle is a 1985 Dodge Ramcharger, which was purchased for $2,500 in 1996 with 163,000 miles on it. During the first 40,000 miles of ownership the truck required no repairs, yielding an average operating cost of 1.5 cents per mile (not including the initial purchase price). I drove this between Wisconsin and Colorado several times, experiencing no problems. After turning 200,000 miles, several repairs were necessary, although the engine, transfer case, and transmission have never needed repair. This vehicle remains my daily driver with 241,000 miles at a repair cost of $5,500, for an average operating cost of 6.9 cents per mile or $46/month.

Picture of my 1985 Dodge Ramcharger in the Rocky Mountains.

Graph of the average cost per mile for my 1985 Dodge Ramcharger. Not shown is the initial 40,000 miles when the average cost was 1.5 cents per mile, prior to 200,000 miles. The graph does show that average cost increases with major repairs at approximately 210,000 and 215,000 miles, but then begins to drop as miles accumulate and the event recedes in time. At 210,000 the ball joints and front-axle u-joints needed to be replaced at a cost of $800. At 215,000 miles the front and rear differentials needed to be rebuilt, at a cost of $1,300. by 223,000 miles the average cost had peaked because so many things were fixed, there was nothing left to go wrong, leading to the long, gradual decline in average operating cost to below 7 cents per mile. The gradual decline indicates that repairs are cheaper and less frequent, allowing the cost to be more effectively average over the miles driven.


Graph of the cumulative cost for my 1985 Dodge Ramcharger. After 200,000 miles, costs mounted rapidly. On a more expensive car, the sudden exponential jump at 215,000 might have been a warning to dump the car, but the initial cost was so low on this vehicle as to be acceptable. Eventually, the curve indicates a plateau past 220,000 miles where only minor maintenance costs accumulated very slowly. On a cumulative cost curve, a flat or slightly rising curve is the best shape.

The foregoing examples should indicate that old cars can be driven successfully if it can be accepted that repairs will periodically be needed. However, the periodic outlay of several hundred dollars for repair bills clearly does not constitute being “nickel-and-dimed to death”, because performing periodic repairs is actually much cheaper than the monthly outlay required by a car payment. In the case of the 1985 Dodge Ramcharger, running up 77,000 miles in 10 years is easily comparable to the service requirements of many new cars by their original owners. But note the Ramcharger’s ownership/operating cost of only $8,000 ($2,500 + $5,500) averaged out over the 10 years of ownership for a “monthly payment” of $67. Even the very cheapest new cars in the $13,000 range will represent nearly double that monthly cost over the same 10-year period simply by averaging out the purchase price. Furthermore, based on reviews of such cars, it appears highly unlikely that they will reach 10 years of age without requiring additional repairs, thus driving up the monthly average cost.

Thus, a used car or even a “beater” should represent a very attractive, financially viable alternative for those who would choose to invest the money they would have spent on their car payment in a retirement plan, mortgage principle, or for paying off credit card debt.

Here is my personal favorite, my 1971 Plymouth Barracuda.



Graph of cost per mile versus mile driven. This is the ideal curve, reflecting a high average cost at time of purchase. Cost declines linearly as miles are driven, with infrequent, inexpensive maintenance items until becoming asymptotic.


Graph of the cumulative cost per mile versus mileage. This is the ideal shape of a cumulative cost curve because it reaches a plateau quickly and can be described with a logarithmic function more efficiently than a linear function. The green line represents projected linear cost curve, while it is apparent that the actual curve has diverged below the projected linear cost.

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