The Indicator from Planet Money · Monday, July 13, 2026
Kevin's parents are resistant to him buying a used car, preferring a new one as a status symbol, despite his financial capacity for a used vehicle. Sheila Bair suggests presenting arguments that a $20,000 used car could be paid for in cash, potentially allowing the remaining $30,000 to be invested for significant long-term financial growth.
“But my parents don't want me to get a used car. I think it's kind of like a status thing for them. They don't like used cars and I don't understand it. So it's why I'm having to get a new car. The used car thing is kind of a hard no, um, because I still live with my parents.”
“A Google used SUVs for less than $20,000 and I saw some compact SUVs. One was a suburban, uh, Ford Explorer, and another was a Hyundai Tucson, which we have actually, believe me, very, very happy with the car. And they were $60,000, $70,000. Uh, they were less than $20,000. So you are looking, you would be able to pay cash for a used car without a loan, which would be a huge, uh, savings for you.”
“So I would encourage you to talk to them about getting a good used car for $20,000. You know, they don't want to give you $30,000 and put in your retirement account, you're going to be saving a lot of money by buying a good used car.”