Over the years, I’ve owned my fair share of cars — including the shiny, overpriced, and perpetually problematic BMWs. They looked great in the driveway, sure, but they came with a constant stream of high-maintenance costs, electronic failures, and the kind of repair bills that make you question your life choices.

These days, I drive a Toyota Prado — and not only is it a fantastic vehicle to drive, but it also makes far better economic sense for anyone running a business (or even just managing their personal budget).

The Old Advice: Lease, Flip, Repeat (Does It Still Hold Up?)

Back in the day — and I’m talking 20+ years ago — the advice was simple:
When your lease ended (typically around the 3 or 4-year mark), you traded up.

The logic was that after a few years, the car would start hitting you with maintenance and repair costs, and it made sense to jump into a new vehicle before those costs came knocking.

That advice worked well back then because cars were less reliable, warranties were shorter, and technology wasn’t as refined. But today?

Cars Last Longer — And That Changes Everything

These days, cars are built to last much longer — especially the well-engineered workhorses like the Prado.

• The average vehicle lifespan has increased from around 8 years (or 240,000km) to over 12 years (or 320,000km).
• Many modern vehicles — particularly the Toyota Prado and LandCruiser range — can comfortably hit 400,000km+ with regular maintenance.

The old advice to swap your car every 3-4 years is no longer the financially smart move. In fact, with the cost of new vehicles skyrocketing and interest rates climbing, holding onto a well-maintained vehicle for 10+ years could save you a small fortune.

The Real Cost of Constant Upgrading

Let’s talk money. Every time you trade in and upgrade, you’re hit with:

• Depreciation reset — new car, new depreciation hit.
• Higher financing costs — especially now with rates on the rise.
• Stamp duty and rego reset — every new purchase means more upfront costs.
• Higher insurance premiums — newer vehicles attract higher premiums.

Compare that to keeping a reliable vehicle past the 4-year mark, investing in regular servicing, and replacing parts before they fail catastrophically. You spread the ownership cost over a longer period, which makes every kilometre you drive cheaper.

Why the Prado Wins — For Me and For You

The Prado isn’t just a tough, comfortable vehicle — it’s also a financial no-brainer for anyone who needs a workhorse that can go the distance.

• It’s reliable — fewer unexpected repairs.
• It holds its value — Prados have some of the best resale values in the market.
• It’s tax deductible (more on that below).

With good servicing and care, I’m expecting my Prado to comfortably hit 400,000km or more — all while delivering fantastic value.

Tax Deductibility — Make Your Car Work for You

If your vehicle is used for business purposes, there are plenty of deductions you should be claiming:

1. Depreciation

• For businesses, cars can be depreciated over time.
• Under the simplified depreciation rules, small businesses may be able to claim an instant asset write-off (though limits change — check the current rules).
• If the vehicle isn’t fully deductible upfront, you’ll depreciate it over 8 years (typical effective life for a car).

2. Running Costs

• Fuel
• Servicing and maintenance
• Insurance
• Registration
• Tyres and repairs

3. Finance Costs

• Interest on a car loan (if the car is financed and used for business).

4. GST Credits

• If you’re GST registered, you can claim the GST on the purchase price and running costs.
• (Capped at the luxury car limit if you’re buying something flashy.)

5. Logbooks and Percentage Use

• If the car is partly for business and partly personal, you’ll need a logbook to show the business percentage.
• If it’s 70% business, you can claim 70% of all expenses.

Depreciation vs Reality — Cars Lose Value Fast

Remember, whether you claim it or not, all vehicles lose value the moment you drive off the lot.

• In the first year alone, a new car can lose 20% or more of its value.
• By year 5, many cars have lost over half their value.

That’s why keeping a reliable, already-depreciated car and driving it into the ground (while keeping it well-maintained) is often the smartest financial play.

The Bottom Line — Keep It, Maintain It, Profit

We’re in a new era — the old “lease and upgrade” model doesn’t make sense anymore for most business owners.

If you’ve got a reliable vehicle, especially one like a Toyota Prado, Hilux, or other workhorse, look after it and it will look after your wallet.

• Regular servicing costs a fraction of a new car.
• You avoid the financing trap of rolling from loan to loan.
• You claim the tax benefits along the way.

I’m all for smart business decisions, and keeping a great car for the long haul is one of the smartest moves you can make.

Thinking about a vehicle upgrade? Let’s crunch the numbers first — you might be surprised how much better off you are keeping what you’ve got.

Serviced by related company Fresh Number Pty Ltd