3 min read Personal Finance Basics

Why Driving a Shitbox Might Be the Best Financial Decision You’ll Ever Make

Before I get into it, full disclosure: we currently own a 2023 Honda Pilot, a 2024 Subaru BRZ, and a 2004 Toyota RAV4. Two of those are clearly not shitboxes. The third one is debatable, but it’ll probably outlive the other two.

Until very recently (2024), we were proudly driving old vehicles. We were 38 when we decided to upgrade and bought two new-ish cars within the same week, in cash, after 20 years of driving beaters and investing steadily. Before the Pilot and BRZ, we had:

  • A used Honda Civic that served us faithfully for 8 years
  • A decade-long run with a used Honda Accord before that
  • A car-free lifestyle, or borrowing our parents’ cars before that

And as if on cue, just as I began writing this post, a friend moving abroad gave us their old 2004 RAV4 for free. The timing was perfect. Our kids had just outgrown the BRZ’s backseats, and I was passively hunting for another beater. A weekend spent changing fluids and filters, and it was road-ready.

Now, after years of saving and driving modestly, we finally splurged responsibly. The new cars were paid in full using gains from our XGRO ETFs inside our TFSAs. But I still think shitboxes are one of the best tools in the personal finance toolbox whether you are starting your journey or staying the course. Of course, don't be afraid to live a little if you can afford it. Otherwise, life is boring and you will doubt your financial journey to freedom.

Shitbox = No Monthly Payment

The moment you drive a new car off the lot, it starts losing value. Yet many people take on five- to seven-year car loans just to have the newest model. A shitbox, on the other hand, comes with:

  • No monthly payments
  • Lower insurance premiums
  • Lower registration fees
  • Cheaper repairs (you’re not afraid to DIY)

That means more money stays in your pocket, or better yet, gets invested. No car payment? That’s $400 - $800/month (more like $1,000+ for some people) you can throw into an index fund instead of a depreciating liability.

Shitbox = Freedom

The real power isn’t just in saving money, it’s in buying your time back.

Not having a car loan gives you options. You don’t feel pressured to grind for a promotion or take on extra work to make ends meet. You’re not stuck in a job you hate because of a shiny new car sitting in the driveway. You can:

  • Switch careers
  • Work part-time
  • Take a sabbatical
  • Stay home with your kids

After all, car expenses are often households’ second largest expense after housing. Imagine you didn’t have that large expense. That freedom adds up to something priceless.

Shitbox = Carefree Living

Here’s something I didn’t expect when we bought the BRZ - anxiety.

Suddenly I cared how close I parked to other cars. I worried about door dings, rogue shopping carts, bird poop, salt stains, swirl marks, and keeping it showroom clean. Owning a nice car created a low-level stress I never experienced with our older ones.

With a shitbox, you park where you want. You don’t flinch when the kids climb in with muddy boots. You’re not obsessing over every new rattle. You drive it, fix it when needed, and get on with your life.

Other Underrated Benefits of Driving a Shitbox

  • Teaches DIY skills: You learn basic car maintenance, which builds confidence and saves you hundreds a year.
  • Makes you immune to lifestyle inflation: It’s easier to ignore what others drive when you realize your net worth is quietly growing.
  • Keeps your ego in check: You stop tying your self-worth to what’s parked outside.
  • Great for bad weather and city driving: You’re not heartbroken when a snowstorm or a pothole leaves a mark.

Perfect backup car: Even if you own a nice vehicle, a shitbox makes an excellent backup for errands, winter driving, or lending to friends.

Final Thought

There’s nothing wrong with buying a new or exciting car as long as it doesn’t wreck your finances. But if you're just starting out, or looking to build wealth, don’t underestimate the power of an old, reliable beater. Shitboxes don’t impress your neighbors. But they quietly help you build a life where you don’t have to care what your neighbors think in the first place. Lastly, driving shitboxes, actually modest cars, was one of the themes in one of my favorite personal finance books - The Millionaire Next Door.

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